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Situation

Supply of seasonal products (e.g., air-conditioners, water-purifiers, garments etc., and consumer electronics) throws up a variety of challenges for supply chain leaders. 

  • Traditional logistics services have lengthy and highly variable lead times. For example, Delhi to Chennai line-haul takes anywhere from 4 to 9 days
  • Supply chain managers tend to overstock to account for such high variance in shipping times
  • Overstocking causes system inventories that account for nearly 40% of the supply chain costs
  • Shipments towards end of season often get delayed and lead to inventory obsolescence and returns ~4% of sales
  • Given sales cycles it’s difficult to sweat production assets towards month end often bottlenecking monthly sales targets

As a result supply chain managers find it difficult to manage operations during peak season. They face flak in case they are unable to ensure adequate product reach. 

Solution

Rivigo accelerates supply of products from centralized manufacturing locations to long distance consumption centers. 

  • Line haul routes are served at 50-70% lower TAT.  Rivigo’s country wide network assures unrivaled coverage across states with anywhere to anywhere service in under 3 days
  • With addition of 3PL and warehousing solutions Rivigo can take end to end ownership of supply chain requirements and optimize inventory across the country

Impact

At Rivigo clients supply chain managers are in control and are able to provide exceptional service to business teams working towards sales targets

  • Real time metrics on vehicles and associated supplies can be used live for inventory planning. Rivigo’s clients are slashing inventory equivalent to 15% of logistics cost
  • Loads are being shipped until 27th of the month as same can be delivered within that month of sale recognition
  • Zero-follow ups for shipment delivery with 100% online visibility 
  • 95% on time delivery at the promised turn around time

 

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