Challenge:
The client was a US based ecommerce company. They had a design and marketing team in the US and an outsourced manufacturing set-up in India via a network of suppliers. They were experiencing:
- Frequent and often exorbitant delays which led to stock outs and inventory planning issues
- Logistics costs continued to grow exponentially higher even at higher volumes
Solution
After conducting an initial assessment of the supply base, it was clear to us that the problems faced by the client were mostly down to not having a sourcing strategy. In addition, there was a need for demand forecasting & inventory management
Process
Sourcing Strategy: Re-organized and allocated SKUs to manufacturers based on demand & complexity VS capability & capacity Inventory Planning: Instituted regular reporting of production & order fulfilment data. Created a comprehensive inventory management plan by establishing safety stock, re-order points Logistics Network Design: Mapped out the various nodes & set up a local hub to consolidate shipments from suppliers to optimize logistics cost and unlock operational efficiencies
Results
Considering the comprehensive nature of the project, this was one of BCube's crowning successes.
- Improved Quality: By sourcing from more reliable and vetted suppliers in India, they experienced a significant reduction in production costs without compromising on quality.
- No more stockouts: Our optimized inventory strategies led to shorter lead times, allowing the client to meet customer demands faster.
- Seamless New Product Development: Armed with a robust supply chain, the client had the flexibility to expand their product offerings and target new markets.
