Transforming Warehousing and Distribution Operations for a leading FMCG company in India with a Surge in Margin from 3% to 9% and Productivity Soars from 5.4 to 9+
Published on: May 2021
FMCG products are closely associated with direct end users. The influence of consumer preference, like and dislike, demography, seasonality, brand, marketing etc. are peculiar. The volume of products and movement of goods is quite large, in comparison with other type of products, and distribution channels are wide and complex. Hence, the scope and role of a logistics service provider is crucial.
In this case, the client had over 3,500 Stock Keeping Units (SKUs) across product categories, 25,000 pallet positions, and 32,000 MT/month throughput, serving 12 distributors across three regions and dispatching around 45 trucks daily. Due to the complex logistics system, the client was facing several challenges related to labour productivity, vehicle utilisation and shipment visibility. High documentation waiting time coupled with high putaway-picking travel time was another challenge.
Overcoming FMCG Logistics Challenges with Our Ingetraged Warehousing and Distribution Solutions
Warehouse Redesign & Process Optimisation:
- Analysing the existing layout of the warehouse and redesigned it to optimise space utilisation, streamline workflow, and improve accessibility
- Installation of racking systems to maximise the use of available vertical space and increase storage capacity
- Installations of IoT sensors on material handling equipments to monitor usage patterns and identify opportunities for improvement
- Implementation of technology initiatives, such as voice-directed picking, to reduce picking and travel time
- Utilisation of VR technology for conducting safety trainings
- Implementation of material handling processes and training staff on best practices
- Streamlining order processing and consolidation to improve dispatch efficiency
Vehicle Utilisation:
- Reducing the cost of transportation by efficiently loading the goods to the vehicles and using the storage space effectively
- Analysing the routes for transportation and planning the most efficient route for multi-point delivery
- Real-time movement tracking through the control tower for increased visibility
- Vehicle rightsizing and reverse logistics capabilities to handle returns
Freight Management:
- Implementation of cross-docking technique for single point handling of freight
- Negotiation of unit rates for cost-effective freight management
Igniting Success: Driving Profitability and Efficiency
- Improvement in margin from 3% to 9%
- Improvement in productivity from 5.4 to 9+
- Streamlining workflow and improving accessibility improved material handling efficiency, thereby, reducing the time and effort required to move goods
- Implementation of best practices and staff training reduced errors in material handling, and decreased customer complaints and returns
- Improved inbound & outbound material visibility
Our integrated warehousing and distribution solution, backed with technology, resulted productivity and margin, optimised warehousing space, improved material handling efficiency, streamlined transportation, and accelerated turnaround time, delivering significant business benefits and igniting success for our customer.
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