LCL Consolidation – Global Logistics Solutions for a Leading Fashion Apparel Retailer in UK
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Transcript of LCL Consolidation – Global Logistics Solutions for a Leading Fashion Apparel Retailer in UK
Value creation through process innovations!
Genex Logistics Research & Solutions Team
Value Creation through Process Innovations!
Global Logistics Solution for a
Leading Fashion Apparel Retailer in UK - A case study
Genex Logistics’s “Buyer Consolidation”
Genex LogiSolutions Pvt. Ltd.
Value creation through process innovations!
Beneficiary profile The beneficiary was one of the largest fashion apparel retailers in the UKapparel for males, females and ksuppliers located across India. had the responsibility of deliveringby the Beneficiary. The mode of transportation was Production was as per Industry norms. the beneficiary was looking at ways / solutenhance visibility of POs and Stock in Transit
Existing process The beneficiary procured goods fof India. As and when suppliers received purchase order, suppliers accordingly scheduled their production and were responsible to deliver goods at scheduled timewas made by air route, which was much costlier than the sea route. so time-taking that it was prohibitive to use this mode.
OR
Value creation through process innovations!
largest fashion apparel retailers in the UK. They were specialized in fashion and kids across age groups. They sourced their products from large number of . Beneficiary sourced merchandise from various suppliers and each of them
had the responsibility of delivering it directly to the beneficiary through the mode of transportation decided . The mode of transportation was largely Air. The agreed Lead time from PO to
Production was as per Industry norms. Considering the competitive and highly seasonal iciary was looking at ways / solutions to revamp its supply chain to reduce transportation cost,
and Stock in Transit.
The beneficiary procured goods from number of suppliers who were spread across the length and breadth of India. As and when suppliers received purchase order, suppliers accordingly scheduled their production and were responsible to deliver goods at scheduled time. The delivery of goods from individual suppliers was made by air route, which was much costlier than the sea route. The option of available sea route was
taking that it was prohibitive to use this mode.
OR
They were specialized in fashion sourced their products from large number of
from various suppliers and each of them through the mode of transportation decided
Lead time from PO to and highly seasonal apparel market,
ions to revamp its supply chain to reduce transportation cost,
rom number of suppliers who were spread across the length and breadth of India. As and when suppliers received purchase order, suppliers accordingly scheduled their production
rom individual suppliers The option of available sea route was
Value creation through process innovations!
Issues Timely delivery
As the suppliers spread across India, delivery schedules as desired by the beneficiary. The luxury of transporting through air route beneficiary) gave them required opportunity to delay production till last mproduction schedules. This many hence resulted in lost sales.
Transportation cost The distributed sourcing made it difficult for beneficiary to consolidate all then choose the best mode for transportationcostly. Scattered Information Flow with least control over Sup
As suppliers were sending goods information at the beneficiary’s endresulting in lots of time and cost. Further, Beneficiary had no control over the of merchandise display at the stores.
Why was Genex Logistics appropriate partner?• Genex team had sufficient vendor consolidation experience especially in the dynamic apparel
market.
• Genex Logistics had created
• Genex team had sufficient experience in 3PL services and had tremendous IT capability.
• The knowledge accumulated by projects ensured successful strategizing and implementation of the project.
Genex Proposed SolutionsBUYER CONSOLIDATION A customized solution to meet the specific requirements of O’seas buyers / retailers designed to:
o Enhance VisibilTransit
o Reduce Cost of o Reduce Handling Enroute
• Buyer’s PO scheduleSupplier’s Production ScheduleProduction Schedules wereshipping schedules whichmapped to the Buyer Merchandise Display schedules.
• Time Definite Sea Service was proposed over the
Value creation through process innovations!
spread across India, produced goods for many customers, they often failed to meet delivery schedules as desired by the beneficiary. The luxury of transporting through air route
gave them required opportunity to delay production till last moment to meet the many a times, even, disturbed the display schedule at b
The distributed sourcing made it difficult for beneficiary to consolidate all purchasesfor transportation. As such all goods were transported by air route, it was very
low with least control over Supply Chain
As suppliers were sending goods through their own Supply Chain Operators, it was resulting in flux of end. Linking POs to Stock arrival and coordinating with many agencies was
resulting in lots of time and cost.
Further, Beneficiary had no control over the supply chain which was making it difficult to get firm schedules stores.
Logistics appropriate partner? Genex team had sufficient vendor consolidation experience especially in the dynamic apparel
created a Time-Definite LCL Consolidation Service between
team had sufficient experience in 3PL services and had tremendous IT capability.
The knowledge accumulated by Genex through their past experience in executing various such ensured successful strategizing and implementation of the project.
Proposed Solutions
A customized solution to meet the specific / retailers designed to:
Enhance Visibility of PO / Stock in
Reduce Cost of Transportation Reduce Handling Enroute
schedules were mapped to Production Schedules. Supplier Schedules were mapped to
which in turn were uyer Merchandise Display
Service was proposed over the earlier air route.
produced goods for many customers, they often failed to meet delivery schedules as desired by the beneficiary. The luxury of transporting through air route (at the cost of
oment to meet the “other” urgent disturbed the display schedule at beneficiary’s stores and
purchases at a single place and all goods were transported by air route, it was very
perators, it was resulting in flux of Stock arrival and coordinating with many agencies was
was making it difficult to get firm schedules
Genex team had sufficient vendor consolidation experience especially in the dynamic apparel
between India and UK.
team had sufficient experience in 3PL services and had tremendous IT capability.
executing various such
Value creation through process innovations!
Results of Genex’s Solution and Client Benefits
• Timely availability of goods to the beneficiary.
• Substantial reduction in overall logistics costs.
• Supplier network streamlined.
• Complete visibility of POs and Stock in Transit.
About Genex Logistics Genex Logistics (Genex Logisolutions Pvt. Ltd.) is New Delhi, India based supply chain and logistics firm with focus on value creation through process innovations. The diverse and widely experienced team at Genex holds proficiency in handling Supply Chain Strategy, Logistics Operations, Core Transportation, International Freight Management, Freight Forwarding, Contract Logistics, 3PL, 4PL, Warehousing & Distribution, Project Logistics and Customer Relationship Management. Genex Logistics spans across India and has been at the forefront setting benchmarks for Logistics, Transportation, Freight Forwarding and Project Logistics industry in the country.
Key contact Mansingh Jaswal Director Genex Logistics (Genex LogiSolutions Pvt. Ltd.) 681, Sector 16B, Pocket B, Dwarka, New Delhi - 110075 India. Office Tel: 91-11-28035020 Mobile: +91-9810404438 Email: [email protected] [email protected] Web: www.genexlogistics.in