Overview
Logistics operations have a significant impact on the bottom line in the fast-moving consumer goods (FMCG) industry. Our client, a leading player in the FMCG sector, needed help with rising logistics costs, strong reliance on manual work for day-to-day tasks, and complex rules in its supply chain operations.
To address these challenges, they engaged Birlasoft to implement a comprehensive shipment planning and execution solution to automate, streamline, and optimize transportation management. Birlasoft helped the client realize this vision with capabilities like sequential bulk planning, threshold-based auto-approval of shipments, and dynamic consolidation strategies.
With this new automated architecture, the FMCG business achieved over 80% reduction in manual effort, 25% lower load-unload times, and significant freight cost reductions. Read the details of this engagement below.
The Challenge
#1. Inability to effectively handle large order volumes
Processing a high volume of daily orders spanning multiple business units without the required capabilities led to inconsistent performance and poor equipment utilization. With a manual approach, the system was prone to bottlenecks, errors, and delays, which negatively impacted the company’s ability to meet delivery timelines.
#2. Suboptimal operations leading to high logistics spend
Due to inefficient resource allocation and equipment utilization, our client was grappling with increasing logistics spend to deliver the high order volumes. In addition, manual shipment planning and execution led to missed opportunities for consolidation and cost savings.
#3. Complex shipment execution and visibility issues
The client had no visibility into its shipments, which made it difficult to track shipments across various stages of transportation. Without automation, there were delays in delivery confirmation, and inconsistent data made it harder to predict and mitigate shipment risks, impacting customer satisfaction.
The Solution
To mitigate the above challenges, Birlasoft spearheaded a comprehensive transformation to a no-touch planning and execution architecture, which brought unprecedented optimization to logistics operations.
#1. Automated no-touch planning and execution architecture
Birlasoft introduced a fully automated architecture that connected the SAP system to Oracle Transportation Management (OTM). This enabled deliveries to be automatically interfaced from SAP into OTM, where every stage of the process, from shipment creation and appointment scheduling to tendering, happened on autopilot. Using OTM capabilities, shipments were auto approved based on pre-configured business rules, leading to faster processing times.
#2. Sequential bulk plan execution for order consolidation
To mitigate equipment utilization inefficiencies, we implemented sequential bulk planning to automatically consolidate orders. It was tailored to specific BUs, commodities, and customer requirements and selected and consolidated orders based on predefined rules, enabling the system to create optimized shipment plans that maximized equipment use.
#3. Threshold-based auto-approval for faster processing
To eliminate manual shipment approval, we developed threshold-based auto-approval rules that automated the approval process based on predefined parameters such as shipment weight, volume, and equipment type. Birlasoft ensured flexibility in the system by allowing adjustments to approval thresholds as needed and designed it to handle both bulk-planned and manually created shipments.
#4. Dynamic consolidation strategies for cost efficiency
Birlasoft implemented dynamic clustering of customers and distribution centers (DCs) for multi-stop shipments and radius-based routing. The solution calculated the optimal number of stops and the most efficient routes using real-time traffic data. It provided flexibility to modify and update route selections based on business needs.
#5. 3D load configuration for efficient stacking and space utilization
We implemented a 3D load configuration tool to ensure efficient trailer and container loading. It enabled the team to identify the most effective stacking arrangement, ensuring shipments were loaded to maximize space while considering the order of stops for multi-drop deliveries.
The Impact
#1. 80%-85% reduction in manual efforts
The automated architecture significantly reduced the need for human intervention across the entire shipment planning and execution process, freeing up resources for value-added activities.
#2. 25%-30% lower load/unload times
The 3D load configuration and shipment schedules optimization solution brought a sizable reduction in loading and unloading times.
#3. Freight cost and spot spend reduction
Dynamic consolidation strategies and better equipment utilization lowered freight costs through more efficient shipment planning and a reduction in the use of high-cost spot carriers.
#4. Improved carrier and delivery time compliance
Real-time tracking, automatic tendering, and approval processes improved carrier compliance, resulting in more on-time deliveries and better alignment with customer commitments.
The no-touch shipment planning and execution solution has enabled the client to fully optimize its logistics operations, increasing its competitiveness in the FMCG markets.
