Case study on Fast Moving Consumer Goods

By Drive India Enterprise Solutions Limited (A Tata Enterprise)

DESIGNING & IMPLEMENTATION OF A SUPPLY CHAIN SET UP RESULTED IN 10% HIKE IN THE CLIENTs SALES VOLUME WITHIN FIRST QUARTER OF THE OPERATIONS.

THE CLIENT
The Client in India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, the client has maintained its undisputed leadership over the years with a value

market share of over 70 percent in the chocolate category. The Clients Patna operation handles almost 20% of the budget sales for Bihar and rest of East India location & is treated as a critical terrain to handle the operation because of political and labor challenges.

CUSTOMER CHALLENGE

DIESL SUPPLY CHAIN SOLUTION

DIESL team spent quality time with the custom- er to understand, design and implement proper supply chain practices which are as follows:
Improper Infrastructure at the warehouse

Proper docking bays with multiple loading & unloading facilities with excellent office interiors & conference room were made as per the Clients standards. The warehouse location was strategically chosen for agile transportation & to enable easy availability of labor

DIESL proposed a green field project & built a modern warehouse with state of art facilities suitable to the perishable nature of the FMCG goods.

 Zero monitoring of Damage / Expiry of

materials

DIESL started batch wise stock maintenance of confectionery & food items in clients ERP as well as started sending MIS reports to the client & their sales officer on daily basis, so that sales officers can accordingly push or- Stock Inaccuracy ders to distributors/ dealers. DIESL started batch wise physical check Expired materials are now separately stored during GRN (Goods Receipt Note) separately and monthly stock audits are conducted which also aid in reduction of expired Daily MIS and monthly stock audit was also stock quantity. done with floor count & cycle count Special temperature controlled room has been created to store chocolates and proper

training has been given to the warehouse crew on material handling to minimize damage to the stock because if such perishable products are mishandled they lose shape and becomes unsalable. This has helped in preventing losses to the Client.

Glimpse of Patna Warehouse

VALUE ADDED SERVICES

Packing and Kitting for special schemes & promotional activity is managed by DIESL To ensure proper adherence to the Quality & HSSE standards (Health Safety Security Environment) which is maintained by the client globally, DIESL incorporated 6S Model (Sort, Set in order, Shine, Standardize, Sustain Habits) at the warehouse

FINAL OUTCOME
DIESLs Patna Warehouse handled the highest sales for the client in Q1 2013-14 & is continuously striving to support additional sales for the location. Clients sales volume has already grown over 10 % in the first quarter this year as compared to the last years performance during the same quarter (refer fig 1.1). The customer has also appreciated the support which DIESL has extended to their sales league.

ABOUT DIESL

Full range of logistics services include Warehousing, Distribution, International Logistics, Kitting & Packaging, Telecom Trading and Value Added Services like cash management and etrade . With its extensive network of more than 200 warehouses spread across 29 states in India (including NESA & J&K), and distribution reach in more than 7000 towns, DIESL gives you a distinct advantage as your logistics partner. DIESL is a TATA Group company; a group recognized as one of the most respected in the world.

Contact Us Corporate Office: Mumbai Contact.us@driveindia.co.in I +91 9867273141 Branch Offices: Ahmedabad, Bangalore, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Jamshedpur, Kolkata, Lucknow, Mumbai and Pune

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