FMCG

Disrupting supply chain models across major FMCG brands in light of COVID-19, as the customer purchasing channels are undergoing seismic shifts. Reimagining the traditional supply chain as agile models where customers get superfast doorstep deliveries.

Services used:

Now express 45

Now Slot Delivery

Impact

5-10% growth in FMCG company's earnings by jump skipping existing distribution setup

Drastic reduction in overall TAT by removing the dependency of FMCG over retailers

Lowering the issue of counterfeit products floating in the market & quality assurance to customers.

Immediate access to new product launches for the customers.

Increased communication between manufacturers & customers.

Improved grievance redressal system.

Challenges

Highly fragmented & distributed supply chains.

Extensive use of distributers which implies more complex accounting & credit pieces.

Delivery fleet - Maintaining and managing a group of deliveryexecutives for eachretail outlet and locality
Inventory - Keep track of stock and update inventory in real time
Promoters - They need to push retailers to accept orders
Tech support

Longer & more complex supply chain involving more number of parties involved.

Approach

Shadowfax devised a 2 pronged approach to create an omnichannel last miledelivery

Model around local kiranas

Approach 1

Shadowfax helped distributors reach out to retailers in remote locations & satellite towns with higher frequency, increasing their network area. We also brought down logistics costs by 10-15% through cross-aggregation & milk-run route optimisation. 3X increase in frequency of weekly deliveries enabling better stock out management. We also enabled remote location retailers get easy access to primary distributors.

Approach 2

Through hub & spoke network in 300+ cities, Shadowfax is powering FMCG companies to ship products to end-customers directly turning the entire operations cost-effective.Enabling D2C model to thrive by jumpskipping distributiors while also adding swift intra-citiy and intra-deliveries from state depots.How was Shadowfax able to implement these measure successfully?Shadowfax utilized its extensive network of hubs & cross-docking centres to connect FMCG depots directly to the retailers, skipping the distributor step (since logistics is not their core domain), freeing the distributors to focus more on relationship building, managing credits, etc.

The details

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To make the model feasible, Shadowfax did the following:

Utilised cross-docking and cross-aggregation for reducing warehousing costs leading to better asset utilisation and cost-benefit of up to 10%.
Shadowfax's far-reaching tech-enabled logistics offerings helped mid-tier FMCG companies reach out to a wider market segment.
State-of-the-art logistics solutions facilitating GPS tracking and electronic locking system for accurate monitoring of goods.
Shadowfax enabled all retailers to get complete access to all SKUs based on their specific requirements. Fewer stockouts leading to higher revenues and improved customer satisfaction.