Logistics - Reengineering the workflow related to procurement logistics

Customer

A leading pan-Asian conglomerate, operates under well-known local brands including supermarkets, hypermarkets), health & beauty stores, convenience stores & home furnishing stores.

The Challenge

• Inefficient Procurement logistics leading to high cost of operations
• Under utilization of pallets and docks for goods receipts at warehouses from various vendors
• Stretched waiting period for offloading of containers due to inefficient scheduling and improper planning
• Direct purchases by various stores due to untimely replenishment from back office
• Lack of proper monitoring and tracking of inflow and out flow of materials in warehouses

HCL’s Solution

• Automated warehouse booking process for smooth delivery considering following parameters during Procurement:
  • Expected delivery date & intervals
  • Nos of trucks owned by vendor or distributor with their delivery frequency
  • Vendors’ preferred delivery day & timings
  • Booking availability of warehouses and time slot capacity per receiving dock
• Splitting of Purchase orders based on truck capacity for efficient fulfillment and decrease in ordering cost
• Maintenance of store delivery schedule for each stores across regions for ordering and delivering of store orders
• Automatic store order creation for replenishment using apportioning intelligence based on historical sales data
• Monitoring and inspection of movements of items for improved control by the system

Value Delivered

• Efficient booking process of receiving location at warehouse for goods from different vendors resulted in improved procurement logistics
• Improved pallets and docks utilization at warehouses
• Reduction in ordering cost due to better truck capacity planning
• Less waiting time for trucks / containers to unload goods due to proper scheduling and smooth delivery sequence
• Better stock levels as per the delivery schedules for stores and timely replenishment
• Controlled direct purchase by stores from vendors
• IT/Users having closer monitoring of movement of materials across the supply chain providing enhanced control
• Significant decrease in Mark-outs due to synchronized info in system with on-hand