Loss of business due to delayed deliveries and high damages
The company, one of the leading manufacturers of water management systems for industrial, residential and agricultural needs, operates from a state-of-the-art manufacturing facility and single warehouse near Chennai and works on a direct distribution model. It uses just-in-time production to minimize inventory holding costs by faster turnaround of over 7000 SKUs. Due to a diverse set of customers located in urban, suburban and rural areas, the company partners with multiple localized logistics partners to deliver to its dealer network consisting of 25,000 dealers across the country. Each dealer consignment was different in size and shape, which required different material handling and planning techniques. The inefficiencies in its supply chain were causing serious loss of business and profitability. It was faced with multiple challenges, specifically
Logistics partner with express delivery time, technology integration and pan-India reach
The company with its experience of working with a logistics partner having consistent on-time express delivery capability, capacity to handle material of odd shape and size, highest reach to over 29,000 pin codes, reliable service and easy customer integration solution decided to reimagine its supply chain by fundamentally questioning the need of multiple logistics partners and leverage technology to enhance operational efficiency. It also saw the opportunity to increase profitability by reducing damages and delayed deliveries.
Consolidate to a single logistics partner with faster delivery time, reliable service and pan-India presence
The company decided to structurally solve its business growth and profitability by reimagining its supply chain model by consolidating it to a single logistics partner to reduce damages and delayed deliveries. Through its capability of up to 50% faster delivery time, fully integrated technical solutions and its network of state-of-the-art processing centers, the partner ensured pan-India express part load deliveries with three days to over 29000 pin codes.
It also demonstrated superior material handling techniques to ensure high quality of service. Its technology integration significantly enhanced its resource efficiency by automatic generation of pickup requests, consignment note, tracking, proof of delivery and billing. It enabled the company to have full control over the movement of its material and manage on-time deliveries to all its dealers.
Lasting business impact
The company was able to achieve 99% delivery adherence through the capabilities of its logistics partner. Today, it supplies its water management systems on time to all its dealers across the country through single logistic partner in more efficient manner. The business impact brought by this partnership was,
The company has positioned itself for all future seasonal peaks in business, targeting 100% direct distribution and delivers seamless service experience to millions of customers across the country.