Market reach of the company limited to only tier-1 cities
The company, one of the leading manufacturers of sanitary ware and bathroom accessories, has five manufacturing plants in the country and one regional warehouse in each metro. The company was supplying its products to its network, consisting of thousands of dealers in all tier-1 cities across the country. These dealers were placing orders for material directly with the company and the deliveries were fulfilled through part loads from the nearest regional warehouse. Consignments were picked up by multiple local logistics partners at warehouses and delivered through a combination of direct and subcontracted localized delivery partners across India. Most of its business was coming from metro cities and it was missing a big opportunity to expand its business in smaller towns and rural areas. The limited reach of localized logistics partners was constraining its expansion of dealership network into sub-urban and rural India.
This distribution of its fragile and odd-shaped SKUs had various supply chain challenges, specifically
Logistics partner with the largest network and highest precision
One of the company's logistics partners had the highest reach of over 29000 pin codes, lowest damages, fastest delivery time, reliable service and easy customer integration solution. The company decided to structurally solve for consignment movement to expand its distribution network. It unlocked the consumption opportunity in smaller towns and enhanced its experience with existing dealers.
Consolidate to a single reliable logistics partner with large network coverage and lower defect rates
To expand its distribution reach beyond major cities, company consolidated its pan-India deliveries to a single logistics partner. The logistics partner not only ensured service capabilities to all the pin codes in India, but also provided full technology integration for generating automatic pickup request, consignment note, tracking, proof of delivery and billing. This enabled company to have full control over movement of its products as it expanded its direct distribution to over 2000 locations across the country. The partner's robust and standardized process of handing fragile material and up to 50% faster TAT, reduced damages and increased dealer satisfaction.
The company was now completely equipped to expand its dealer network anywhere in the country. The business impact brought by this partnership was,
Today it delivers seamless service experience to millions of its customers being served through network of dealers in smaller towns in all parts of the country.