Reduced 80% Monthly Damage Cost with our Fulfilment Solutions for a Leading Online Grocery Business

Published on: May 2021

The online grocery industry has experienced unprecedented growth in recent years, fuelled by advancements in technology, changing consumer preferences, and the global shift towards digitalization. Traditionally, grocery shopping was perceived as a time-consuming task, requiring individuals to physically visit stores, navigate aisles, and stand in queues. However, with the advent of online grocery platforms, consumers can now browse, select, and purchase their desired products from the comfort of their homes, transforming the entire shopping experience.

Our customer, a leading quick-commerce app dominating the online grocery landscape stands out by guaranteeing delivery of groceries including fruits, vegetables, personal care, electronics and more within a remarkable 10-minute timeframe. Operating across 10 cities in India, with headquarters in Mumbai, the client was looking for opportunities to enhance their fulfilment operations, particularly in addressing instances of damage during handling and storing goods. Additionally, maintaining precise inventory levels has emerged as the need of the hour, demanding a robust system to ensure accurate tracking and meet the dynamic demands of the online grocery business.

Tailored Fulfilment Solutions Enhancing Efficiency and Scalability

We devised a comprehensive approach with our technology enabled fulfilment solutions.

Operational Overhaul: The existing operational flow, involving order receipt from multiple vendors between 9 am to 7 pm, underwent a strategic overhaul. We introduced a meticulous quality check on the received stock, followed by systematic putaway in racks & shelves, precise picking as per forecast and palletisation near the dispatch area enhancing overall efficiency.

Inventory Management Strategies: To tackle inventory challenges, we implemented a series of audits, including Empty Bin Audit, ABC Analysis categorising materials based on their movement, Damage Issue Resolution Audit, and Wall-to-Wall Cycle Count Audit. Our Damage Reduction Strategies included the establishment of a separate storage section for products based on type, increased pest control frequency, zoning based on type of damage to the products and the introduction of HRV Cage for high-value goods.

Value-Added Services: In addition to these measures, our value-added services aimed to improve overall product handling. We implemented a structured loading pattern to reduce in- transit damages, employed shrink wrap for products like flour, and utilized corrugated boxes lined with shredded paper for storing fragile items such as glass and nail paint bottles.

Automation Initiatives: Our automation initiatives are set to revolutionize the fulfilment process. The upcoming implementation of an E-picking trolley promises a 12% improvement in picking productivity, while the introduction of drones during nighttime operations ensures enhanced safety and security, monitoring workforce activities, and mitigating instances of theft, pilferage, and damage.

Our technology enabled fulfilment solutions not only addressed the current challenges but also laid the foundation for an efficient, streamlined, and future-ready operation tailored to the dynamic demands of the online grocery business.

Igniting Success: 80% Drop in Monthly Damage Costs with a Consistent 0% Dispatch Breach Rate

Our strategic implementation of fulfilment solutions resulted remarkable impact, igniting success for our customer. Our effective damage reduction strategies helped to reduce the cost of damaged goods substantially from 2.65 Lacs per month to 50,000 per month. Maintaining a flawless dispatch breach rate of 0%, we ensure the consistent and timely fulfilment of customer orders. Through strategic measures such as the Wall-to-Wall Cycle Count Audit, we significantly enhanced bin accuracy from 84% to an exceptional 95%. Our strategic efforts also optimized storage capacity, elevating it from 11.8 lakhs to 13.1 lakhs, positioning our client for enhanced efficiency and scalability in the dynamic online grocery market.