There are multiple warehouses (Distribution Centers) located in India and there exist common suppliers for each product. Also, these suppliers are located across the country. Warehouses order as per their requirement. Since the per trip loads are not enough to send a dedicated truck from supplier to each warehouse, receiving on-time deliveries and food safety of the products was a challenge.
This had affected inventory holding in warehouses leading to higher inventory carrying cost, high inventory days, threat of stock-out situation and in-transit damages, safety of food items in transit and higher inbound cost.
The need to transport products in a cost effective manner and ensure on-time availability without compromising on the integrity of the food products, was identified.
Ensure consolidation of stock at the nearest warehouse and move full truck-loads. To make it happen following steps were taken: