A large consumer durable company with operations at 32 warehouses and 3 manufacturing locations. At time of GST implementation, company was looking for network optimization to optimize logistics cost. Company was having substantial Spares / accessories business along with finished goods, which was to be considered for in network design. Aviral executed the project with scope of substantial saving.
Challenges: Key challenges to be addressed in performance management were:
- Assessment of network design in GST scenario
- Sub optimal efficiency of warehouses
- High inventory level in existing network
- Criticality of service level in spares
Solution: Network design was done with help of Llamasoft. Final solution was delivered considering adherence to service level.
- Reduction of distribution warehouses from 32 to 14
- Separate network for Spares with NSD, RDC and spare centres
- Spare inventory classification and TAT based on criticality
- Reduction in cost by 15% with same service level to tier 1 & 2markets
- Consolidation of vendors
A large consumer durable company with operations at 32 warehouses and 3 manufacturing locations. At time of GST implementation, company was looking for network optimization to optimize logistics cost. Company was having substantial Spares / accessories business along with finished goods, which was to be considered for in network design. Aviral executed the project with scope of substantial saving.
Challenges: Key challenges to be addressed in performance management were:
- Assessment of network design in GST scenario
- Sub optimal efficiency of warehouses
- High inventory level in existing network
- Criticality of service level in spares
Solution: Network design was done with help of Llamasoft. Final solution was delivered considering adherence to service level.
- Reduction of distribution warehouses from 32 to 14
- Separate network for Spares with NSD, RDC and spare centres
- Spare inventory classification and TAT based on criticality
- Reduction in cost by 15% with same service level to tier 1 & 2markets
- Consolidation of vendors