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 :
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.
- 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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