Unwinding Complexities

Consolidation of supply chain operations by Logiwiz for leading thread manufacturer

At the time Logiwiz took over management of the said client’s logistics operation, the client’s finished goods inventory was managed out of 2 locations for strategic reasons. While one location was the factory warehouse, the other location was a stand-alone warehouse situated close to the main apparel export zone in the country, where bulk of the client’s clients were operating from. The apparel industry being driven by low lead time order fulfillment, the client serviced orders twice a-day from each warehouse location on pre-specified delivery routes. Thus a delivery vehicle from one of the client’s warehouses would hit a end customer factory twice a-day. The client deliveries touched approximately 300 delivery points a day and the client maintained in inventory approximately 10,000 SKUs.

Having analyzed the movement and the storage characteristics of the inventory, Logiwiz initially relocated one of the client warehouses to the modern Distribution Centre of Logiwiz. By doing this, the client got the benefits of operating at a shared facility with a variable cost structure as against the previous fixed cost operation at the stand alone warehouse.

Over a period of time, Logiwiz convinced the client to close down the factory warehouse, and consolidated the entire storage and distribution operation to the Logiwiz Distribution Centre, thereby saving resource costs and improving stock availability.

Once the single point delivery operation stabilized, working closely with the client’s sales team, Logiwiz migrated the 2 delivery per day distribution model to a single delivery per day model. This was a huge paradigm shift for both the client organization and their end customers. but with sufficient pre-planning, and pro-active dialog with the end customers, Logiwiz managed to ensure that no service delays were encountered due to the delivery model change.

The cost savings Logiwiz generated for the client by moving from a twice a-day delivery from two locations to a single point single delivery model was significant, and to date this delivery model is efficiently operating.

To date Logiwiz handle the entire ground logistics operation for this client, and this mutually rewarding partnership is in its 7th year.