Industry – Chemicals
Challenge Given in the scope – We were given a task to manage 1300 SKU totalling to 55 lac litres of liquid chemicals every month arriving at our warehouse from 10 + factories to be distributed to 50 + locations all over India with zero Inventory loss.
With our operational experience and leveraging of technology, we could not only achieve zero variance but also got the inventory turnaround time reduced from 6 days to 3.42 days thereby generating saving through finance cost on goods worth Rs 130 crs ( USD ) locked due to excess inventory.
We modified our WMS to procure the cargo in transit and coordinated with the client’s distributors to place orders of it. A highly mathematical approach to record the transit days of each inward factory from T+1 to T+7 in the system was adopted. This gave us a better visibility of the distributors of the stock which was expected at our warehouse with an approximate ETA.
A well-organized approach like this allowed us to do the cross docking and gave us and platform for immediate dispatch of inward material to the distributors from the staging area.
Conventional methods usually do the put-away and then pick the cargo up. Our smart approach gave us a reduction in inventory holding as well as operating cost.