Case Study-CRONJ Logistics Management Tool

A leading manufacturer of consumer goods(water and air purifiers, vacuum cleaners) has a pan India presence. The company’s core DNA lies in its huge sales presence and direct selling. The company has warehouses all over India .With a regional warehouse in Bhiwandi Maharashtra. The warehouse served to all formats of customers like retailers ,service centres and house hold customers.

The logistics is handled by a 3PL which is responsible for route planning and last mile delivery. Following are the challenges which logistics arm faced :

Customer orders being delayed
Low Vehicle utilization(Monthly Avg.~30%)
High Logistics Cost
High Logistics Cost
No Parking of Vehicles/Poor Driver Utilization
No Parking of Vehicles/Poor Driver Utilization
Excessive Breach of SLA with the end of customers
Excessive Breach of SLA with the end of customers
Our key objectives discussed with the firm

After discussions and continuous monitoring of day to day operations we found the problem can be solved by building a tool that can give a functionality of aggregating the demand in the lean period and design the shortest possible route with maximum delivery point coverage. The tool should have a functionality of vehicle tracking and real time analytics dashboards capturing logistics KPIs.

Methodology
Methodology

Outcome

  • Vehicle utilization improved from 30% Avg. to 80 % Avg.
  • Vehicle count reduced from 7 to 4 with the estimated saving of 2 million INR anually for R4 regional warehouse.
  • Driver utilization improved by 50% and delivery points covered increased from 4-5 to 8-9
  • Real-time tracking of vehicles through GPS reduced the gap between Expected and actual time of delivery

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