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Optimization & redesigning distribution network for America’s leading direct selling brand

• Project Description

   

  About the customer:

  An American direct selling company that sells health, beauty and home care products.

  Customer challenges:

  The customer had 5 fulfilment centres (FCs) in the Eastern UP Region at Lucknow Varanasi, Allahabad, Kanpur & Gorakhpur which were taking care of local distribution in the respective geographies. The key challenges for the customer were order integrity & delivery timelines.

  Holisol solution:

  Based on the data analysis of order volumes, sizes, geographic spread and reviewing the existing fulfilment centre & distribution network following solution was designed & implemented for the customer.

   

  FC Network Redesign

  1. 5 FCS were clubbed into 1 single FC

  2. One centralized fulfilment centre was set up in Varanasi

  3. Designed a hybrid storage system equipped with

  3.1. Ambient & temperature-controlled storage

  3.2 Reserve storage – Vertical Pallet Storage Racks

  3.3 Active picking area, bins on shelves

   

  Technology Application

  1. Developed an application for “Pick-n-pack”

  2. Barcoding at Piece level to singularly identify units

  3. Picking using Hand-held Devices to enhance efficiency

  4. Scan based Order Processing to ensure Order Integrity

   

  Distribution network redesign

  1. Hybrid distribution system design including

  1.1. In city deliveries in Holisol’s network

  1.2. Upcountry deliveries using a partner’s network

  1.3. Daily milk-run at night dropping shipments in regional hubs for further distribution

  1.4. Android-based On-Field application to provide real-time visibility on shipment status

   

  Benefits for the customer:

  1. Warehousing Cost reduced by 24 %

  2. Perfect order – increased from 94.3% to 100 %

  3. Delivery within 24 hours percentage increased from 87.2% to 98.7 %

  4. Delivery within agreed TAT increased from 78.9% to 97.5 %

  5. Real-time updates of shipment status 100%

   

  For more information contact us at communication@holisollogistics.com