Digitization and automation of fulfilment centre for a FMCG giant.
- Increase in sales by 2.5% in year 1 and 1.25% in year 2
- Throughput handling capacity increased by 30%
- 99.9% picking accuracy thus reducing Returns
- Same cost to serve for improved experience (1000+ SKUs)
- Lesser touch points and hence better quality
One of the major FMCG clients was facing pressure from customers expecting quicker deliveries and left-field competition from players like Amazon for retailers. The client wanted to fulfil orders to retailers and outlets directly with same-day, and next-day delivery as the industry and consumer mindset shifted from delivery in days to deliver in hours and minutes. To address this challenge, the client wanted to revamp, re-strategize, and modernize their fulfilment operations.
We collaborated with the client to re-design the network that aligned to new models of fulfilment for retail operations for a faster delivery. Our warehouse experts worked together to create a hybrid fulfilment strategy based on the order profiles of the client, where both standard and automated warehouse operations are co-created and orchestrated to deliver faster fulfilment direct to retailers and outlets. We continued the journey with the client from strategizing to implementing and stabilizing operations. Logistics hubs were set up with cross-dock operations to maximize shipment efficiency and targeted to reduce cost-to-serve impact.
With the new way of operations, re-aligning the warehousing process and technology products helped make operations more efficient, with 1 lakh sq. ft of ASRS installation with 4.5 lakh sq. ft of manual setup. It digitized fulfilment with automation of warehousing operations. We also witnessed the following:
- Up to 50% reduction in dock to stock and pick to ship cycle time
- Throughput handling capacity increased by 30%
- Picking accuracy improved to 99.99% thus reducing Returns
- Same cost to serve for improved experience (1000+ SKUs)
- Lesser touch points and hence better quality
- Integration of logistics system to have visibility till last mile
