Avvashya CCI had to bring India's second-largest commercial vehicle manufacturer’s warehouses under one roof, as a single, consolidated 'master' store, at its manufacturing facility in Alwar, Rajasthan.
We had to build a state-of-the-art, bespoke warehouse in limited time to meet the aftermarket demands of our client’s customers, thereby improving their customer service delivery.
The job was to consolidate aftermarket operations and expand its market share amid stiff competition and a depressed market.
The fragmented inventory challenge
Multi-location warehouses spread across Nagpur, Jaipur, Kolkata and Delhi were pushing up costs, without actually meeting the aftermarket demands of customers for this manufacturer. Inadequate infrastructure bred inefficiencies into the inventory visibility and management process. They also exposed the aftermarket value chain to risks such as inventory damages and inaccurate dispatches.
Fragmented inventory led to order losses — often, orders could not be fulfilled, as they would come to one warehouse while the inventory would be lying in another. Holding a high stock in every warehouse was not an option, as that would escalate costs. The inefficiency had an impact not only on revenues but also on brand reputation and credibility.
Creating a state-of-the-art, dynamic aftermarket warehouse
We realized that a plain-vanilla consolidation was certainly not an option. We needed to infuse a series of value-added services and bespoke solutions to create a state-of-the-art and dynamic aftermarket warehouse for our client that would meet global standards and support the auto manufacturer's distributors and dealers across India.
Apart from developing an efficient warehouse, ACCI’s custom-designed solution for the automaker included value-delivering features such as emergency orders and express service management, unit conversion management, and composite kit creation and management.
Multi-fold business impact with ACCI
Designed, developed and stabilised within a very short span of time, the Alwar warehouse stands differentiated in the automotive industry as a dynamic aftermarket warehouse, with advanced abilities.
The value is visible at multiple levels:
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Revenues have tripled: Revenues from the Alwar warehouse have shot up to INR 15 million a day, from the INR 5 million-level in just one year.
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Productivity and efficiency have improved: Advanced infrastructure options such as racking and bin-mapping have improved pick efficiency by three times to 60 per hour, per man day, from the earlier number of 20 per hour, per man day.
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The standard order fulfillment time in the warehouse is 24 hours. For emergency and express orders - it is three hours, which is an industry-best number.
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Customer service delivery is at its best: While streamlined and well-managed warehouse management processes have impacted efficiency and productivity, value-added services have enhanced customer service delivery by several folds. For instance, composite kits ensure superior vehicle experience for customers, directly impacting revenues and brand loyalty.
