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Single Window Logistics Service Provider to handle complex logistics requirements
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Challenges faced by specific client -
The client has long been both pioneer and front-runner in HVAC & R (Heating, Ventilation, Air Conditioning & Refrigeration) in India, with more than 50 years of accumulated expertise. The client has Pan India Presence & hence needed a strong logistics partner to handle complex logistics requirements. The company felt a need for single-window logistics provider to increase process efficiency, improve service levels and manage total logistics cost as well improve operational efficiency. Earlier, many small Unorganized CFA’s were managing the operations resulting in high cost & inefficiencies. Apart from handling FG channel partners, the LSP also had to collects defective FG from customers/franchisee as well as defective spare parts. Spares were of more than 3,500 SKUs with an average dispatch requirement in excess of 15,000 line items per month. As is true of any spares management, apart from significant distribution services requirement, a massive returns management process was required. They also needed LSP to manage timely, safe & complete (OTIF) distribution from their mother warehouse on short notice periods, as well as provide multi modal transportation & in city deliveries. Client desired high levels of service and lower cost to tier 2 & tier 3 towns as the business shifts to these geographies. Also, Information flow was not synchronized leading to delayed responses to consumer, and Inventory was not maintained properly leading to damages and execution.
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Solutions provided / Suggested by DIESL -
DIESL has been the logistics partner for the client since 2007. Our scope of business has grown from select warehouses to a pan-India coverage. Today, we extend following services to the client:
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Pan-India warehousing across 27 locations |
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Primary distribution from Patna Nagar factory |
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Secondary distribution across the country |
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Single-window Operations:
Following multiple rounds of internal assessment, the Client identified DIESL as its sole 3PL service provider for its full range of logistics needs – pan-India warehousing for finished goods & Spares, Primary & Secondary Distribution including reverse pickups and ILS requirements.
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WH & Distribution Management:
We are the sole service provider for all 27 spares warehouses including its mother WH and Circle WH. Operating at consistent peaks of 500 orders a day, we have established service levels to meet customer requirements. In addition, we are the sole service provider for air & surface distribution across India
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Milk-runs and Reverse Logistics to collect and replace defective parts:
For faster turn around, we introduced milk-runs in major cities to achieve same day collection and replacement. We place coordinators to monitor collection and dispatches
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Value Added Services:
At the warehouses, we execute Value Added Services like kitting, labeling, & tagging for spares. We manage reverse logistics for the Client
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Final Outcome -
The ‘Single Window Operations’ has significantly improved efficiency for the Client logistics. Despite rapid growth and hence, scale of operations, we have delivered on service levels
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