Limited market reach of the company to the southern region of India
The company, one of the leading manufacturers, marketers, and distributors of an international brand specializing in apparel and sportswear has five manufacturing facilities in south India. The company has presence in over 70,000 retail outlets in over 2500 towns in India. It operates on a combination of direct and indirect distribution model for both retail and modern trade channels. The company wants to move entirely to a direct distribution model for all its channels to increase effectiveness of cost and operations. The company was expanding its direct footprint beyond major cities. Due to seasonal weather shifts and fast-changing fashion that the apparel industry deals with, the company operated on limited inventory and was always under pressure from the market to move its shipments within strict timelines. The company was operating with multiple localized logistics partners and was supplying material from its Bangalore warehouse through part truck load movements. The consignments were picked up from its central warehouse by multiple local logistics partners and delivered through a combination of direct and subcontracted delivery partners across the country. Inefficiencies of its supply chain were impacting the company causing serious loss of business and profitability. It faced with multiple challenges, specifically
Logistics partner with express delivery time, the capacity to manage seasonal peak loads and technology integration
The company with its experience of working with a logistics partner having consistently on-time express delivery capability, capacity to handle spikes in seasonal volume, 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 expand its direct distribution to all parts of the country.
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, profitability and distribution expansion plans by reimagining its supply chain model by consolidating it to a single logistics partner. Through its capability of up to 50% faster delivery time, capacity to manage seasonal peak loads through its network of state-of-the-art processing centers, material handling techniques to ensure high quality of service and delivery reach to over 29,000 pin codes in the country, the partner ensured pan-India express part load deliveries with three days.
Adherence to delivery time was as high as 99% and tackled loss of sales due to delayed deliveries. It provided full technology integration for generating automatic pickup requests, consignment note, tracking, proof of delivery and billing. This improved productivity of warehouse staff by 30% and reduced errors due to manual handling. It enabled the company to have full control over the movement of its material and maximize the business volume during seasonal peaks.
Lasting business impact
The company was able to make the most of the opportunity during high seasonal business volumes through the capabilities of its logistics partner. It is supplying its material to most parts of the country through direct distribution significantly impacting its profitability. It is now in full control of its material movement to over 50,000 outlets across the country. 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.
