Case Study - Automation of Material / Service Code Creation

Consolidation of Business Processes and Warehouses

This case study illustrates how EBEX used their streamlined all processes used by their clients to result in greater efficiency and an considerable faster TAT.

Who was the Client

Client

Two huge companies, both part of a large $8bn group, each one having its own line of business and separate operations in terms of offices, warehouses, logistics, etc. One of the companies deals in kids learning solutions and holds perishable inventory with short shelf life and has a turnover of over 900 crores. The other one is into cabling and telecom ISP business, needing a warehouse to store hardware needed at the time of installation and has a turnover of more than 550 crores.

What was the earlier process

Existing Process

Group companies, majorly Siti Cables and Zee Learn, were managing logistics & warehouse operations independently and each one was facing similar challenges. Both companies were managing the same process for same geographic targets separately on organization level.

Where were the challenges

The Problem

  • Higher costs of operation at group level.
  • No process of benchmarking at a service level, as each business handling the process in their own way.
  • Lack of control and common visibility at group level.
Approach taken by EBEX

The Approach

  • Discussion with experienced warehouse management service providers.
  • Discussed solutions offered and measuring their capabilities/competences/technological advancement to support operations.
  • Negotiated best possible price and finalized partner to manage operations.
  • Timely ERP/process training to new partner.
Process improvement done by EBEX

The Solution

  • Merged warehouse and logistics operations for group companies in single shared warehouse, resulting in INR 20.9 million per annum savings.
  • Common transport facilities appointed for consolidated load management at better rates & service levels and an overall better negotiation, economy of resources, and about INR 20.7 million per annum savings achieved.
End result achieved

The Results

This process of consolidation took one year (2018-19) and resulted in:

  • Reduced warehouse count (B2B model) – From a total of 26 warehouses to just 6.
  • KPIs defined logistics & warehouse operations.
  • Operations managed with less space in peak season due to shared operations.
  • Transport partners with competitive rates & better TAT.