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INDUSTRY

FMCG & RETAIL

Managing Movements Till Last Mile Ensuring Reliability To Prevent Stock Outs

KPI IMPACT OF
OUR SOLUTIONS

Various sales channels such as modern trade (retailers) , general trade (wholesaler, distributor) , institutional sales (armed forces, universities, corporates etc) pose varying degrees of challenges ranging from meeting delivery schedules to geo-coding and dynamic planning of routes for last mile deliveries , to frequency based scheduled deliveries logistics teams use a combination of static rules and improvisations to meet the varying requirements of such channels. Carriers are engaged in various contract structures such as leased , per trip , per UOM , specialized vehicles etc and also impose dynamic constraints in lane preferences and availability. These challenges get further magnified due to the seasonal nature of business and capacity availabilities.

Retailers, in turn, face the ripple effects of delays in deliveries to their warehouses. Their delivery schedules to storefronts get impacted and they may lose potential sales due to stock outs of particular brands of goods. Visibility into deliveries / trips becomes increasingly important not just for shipper-channel-transporter stakeholders but also
as a capability to support evolving business models.

01

Supporting continuous moves to maximize asset utilizations

Typically companies plan for onward movements and returns / inward movements in a silo-ed manner which increases the number of trips.

Continuous moves involves planning a standard trip between pickup and delivery location coupled with empty “dead-head” movement between the delivery location and another nearby pickup location followed by return to first pick-up.

We feel that this best practice when applied correctly results in considerable savings with more two-way trips – also preferred by carriers.

02

Managing market vehicles sourcing and tracking

Sourcing of market vehicles with best possible rates becomes a bane for logistics teams with lack of insights into available transportation options.

Publishing of lane level requirements and managing reverse bids from various transporters gives them the confidence regarding best available pricing.

With modern technologies , both smartphone mobile app tracking and feature phone mobile number tracking can be enabled to get visibility into trips being executed using market trucks typically lacking GPS devices.

03

Meeting SLAs while ensuring shipment priorities

Different customer accounts have different order priorities meaning different SLAs which need to be adhered during transportation planning and execution.

Optimization considering priorities ensures planned movement of materials as per schedule while honouring various SLAs.

Carriers can have full visibility to the schedules and can release trucks for the trips as per the pick-up / delivery windows to reduce docks overflowing.

04

Enabling last mile delivery with dynamic geo-coding

Static planning using clustering logic can result in sub-optimal route plans with the addition of a new customer drop point to a cluster – limiting opportunities in consolidation based upon current orders for delivery and locations of all delivery points.

This requires a change of approach to dynamic route planning with geo-coding of new delivery locations and distance matrix updates to take advantage of consolidation opportunities leading to improved utilizations.

Total number of trips

Reduction by

10-15%

Truck Utilization

Improvement up to

10%-14%

Delivery costs

Reduction by

7%-10%

One Of The Largest Retail And Beverage Multi-National Company

WATCH VIDEO

Overcoming Challenges in Last Mile Deliveries

Addressing last mile delivery challenges in Mexico operations of a large beverage retailer

Uncovering Value in Secondary Distribution

Addressing challenged faced by a large FMCG company in transportation planning

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