FMCG & Manufacturing - MARICO

Innovating Distribution

Optimized Distribution for Secondary Transportation

1 %
Increased Efficiency
1 %
Reduced Re-attempts
1 %
Reduced Planning Time
1 %
Reduced Resources

Company Overview

Marico Limited is one of India’s leading consumer products companies operating in the beauty and wellness space. Currently present in 25 countries across emerging markets of Asia and Africa, Marico has nurtured multiple brands in the categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care. Marico’s India business adds value to the life of 1 in every 3 Indians. Marico has an annual turnover of INR 63 billion (FY 17-18), with 8 factories in India.

Business Challenge

FMCG sector faces uneven and skewed demand. Couple this with huge number of SKUs, high service levels required to avoid stock-outs and a large geographical area for distribution; all this, put quite a pressure to design a responsive supply-chain. However, due to limited adoption of technology, companies struggle with many challenges, especially, when it comes to secondary (C&FA to Distributor) / last mile distribution. Majority of these problems are attributed to manual planning which is still prevalent in the sector. After all, the supply-chain could be as efficient as the efficiency of the resources doing the plannin

Solution

Quifers worked with Marico to come up with a truck load builder and vehicle packing algorithm that automates the planning for the secondary distribution. The algorithm considers real time constraints like distributor/route wise vehicle constraint, vehicle availability, orders coupling and geographic clusters. The algorithm comes up with results that suggests which fleet type are required in how many number to serve which distribution nodes. The algorithm works to give out results that reduce the total distribution cost along with increasing the vehicle utilization
Truck Load Builder helped us reduce cost for our CFA to Distributors movement by almost 30%. The ability to test numerous what-if scenarios directly from the dashboard is a big plus. The real sell is the team which worked closely & were available for any need.”

Akshay

Marico

Result

 – Registered over 25% cost reduction in distribution cost using our product.                                                                           – Standardized processes resulting in no dependence over manual intervention.                                                                   – Convenience as e-documentation removed any need to maintain Bills/Receipts in paper format.                               – Live tracking link to distributors for the vehicles serving them was provided with our technology.                             – No requirement of GPS installation on vehicles further reducing capital cost for the organization.

Similar Use Case

QDMS can be used for optimizing load building between any supply-chain phase. It could be used in other industries like Manufacturing, Transportation, Exports, Retail, Agro Products and any other avenue where one needs to find the optimum number of vehicle and load allocation for sending goods from one-to-many Or many-to-many case.

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