In general, The Indian logistics and supply chain industry is largely dependent on manual operations and processes, little technology and not yet digitized in significant form. Moreover, supply chains are fragmented and multi-layered, with many intermediaries and suppliers between the brand / supplier and the end customer.
By using data and technology as well as better infrastructure, we can significantly reduce supply chain costs while improving the end-customer experience.
Logistics of the first and last mile
Freight and integration guidance mechanisms help brands identify and select the best freight provider based on their product type, shipping type, past performance, serviceability, turnaround time, cost, payment method (prepayment or overlay), etc. Using ML, you can choose the most optimal route to send, as well as assess the risk of the trip. For example, predict shipping delays due to excessive traffic, road closures, bad weather, etc. It also allows both brands and end customers to track their shipments in real time, which helps improve customers.
Today, several startups provide technology that can automate the entire process of invoicing, auditing and compliance – by providing digital proof of delivery and matching purchase orders with invoices, shipping documents and contracts.
Demand and inventory planning
Based on past data, BI recommends the optimal stock levels of different SKUs in different execution centers. This allows brands to store the right amount of products in different warehouses, optimizing working capital and reducing overall costs. In addition, by keeping the right SKU in the right place closest to the customer, the brand can enable “1-2” day deliveries for the maximum number of orders, resulting in greater revenue and customer satisfaction. This also leads to significant savings in last mile freight costs, as a higher percentage of deliveries to end customers can be shifted from national to regional / local delivery
In addition, forecasting analytics can help identify key upcoming demand points and zones, allowing companies to align their sales and marketing efforts accordingly
Warehouse performance management
By analyzing past data on orders made and executed, it is possible to optimize various processes in the warehouse, such as product location, type of storage, assembly, packaging, etc.
The Warehouse Management System (WMS) allows you to monitor warehouse operations in real time, providing transparency, performance management and SLA compliance.
The Watchtower tracks warehousing activities at the micro level and provides valid information and corrective feedback to ensure continued rapid SLA compliance. Using this product, the central task force can view the performance of the brand in all warehouses, and the excellence manager in any warehouse can view the performance of different brands / products in this warehouse in one window. The Management Tower also helps project management teams standardize and professionally introduce new products.
E-commerce growth technology provides valid real – time information and captures the view of the brand “outside inside” from the customer’s point of view, for example: % of products. Inventory bids, opening trend on keywords, distribution of directories on various platforms, ratings and reviews, content quality indicator and price and stock analytics.
It helps brands understand and quantify how well their products perform compared to competitors in different markets that they can use to improve product development, sales and marketing and inventory planning.
Incorporate retail and fast commerce
Thanks to the integration of different systems, brands can further optimize their supply chain and move to a truly multi-channel model, where the order can be fulfilled at the nearest procurement point, be it a factory, warehouse, dark shop or retail facility.
In addition, using the right technology for demand planning, inventory management, warehousing operations and last-mile delivery, several brands began offering fast commerce and delivery times were reduced to <10 minutes
Using BI and technology, companies can have a holistic view of their supply chain, helping them reduce costs, improve cash flow, mitigate risk, improve customer service and build a flexible and innovative supply chain.
The above opinions are their own authors.
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