Optimization & redesigning distribution network

Project Description

About the customer:

An American direct selling company that sells health, beauty and home care products.

Customer challenges:

The customer had 5 fulfilment centres (FCs) in the Eastern UP Region at Lucknow Varanasi, Allahabad, Kanpur & Gorakhpur which were taking care of local distribution in the respective geographies. The key challenges for the customer were order integrity & delivery timelines.

Holisol solution:

Based on the data analysis of order volumes, sizes, geographic spread and reviewing the existing fulfilment centre & distribution network following solution was designed & implemented for the customer.

FC Network Redesign

  • 5 FCS were clubbed into 1 single FC
  • One centralized fulfilment centre was set up in Varanasi
  • Designed a hybrid storage system equipped with
    • Ambient & temperature-controlled storage
    • Reserve storage – Vertical Pallet Storage Racks
    • Active picking area, bins on shelves

Technology Application

  • Developed an application for “Pick-n-pack”
  • Barcoding at Piece level to singularly identify units
  • Picking using Hand-held Devices to enhance efficiency
  • Scan based Order Processing to ensure Order Integrity

Distribution network redesign

  • Hybrid distribution system design including
    • In city deliveries in Holisol’s network
    • Upcountry deliveries using a partner’s network
    • Daily milk-run at night dropping shipments in regional hubs for further distribution
    • Android-based On-Field application to provide real-time visibility on shipment status

 Benefits for the customer:

  • Warehousing Cost reduced by 24 %
  • Perfect order – increased from 94.3% to 100 %
  • Delivery within 24 hours percentage increased from 87.2% to 98.7 %
  • Delivery within agreed TAT increased from 78.9% to 97.5 %
  • Real-time updates of shipment status 100%

For more information contact us at- [email protected]

Project Details

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