Business Challenge
The company utilized third-party trucks for delivery of finished goods to customers at higher charges per trip and an additional cost per trip for trolley return. Management sought to evaluate transportation efficiency and identify opportunities for logistics cost reduction.
Our Approach
Understand
Reviewed dispatch patterns, vehicle utilization, trolley specifications, delivery routes, freight contracts, and return logistics arrangements. Conducted discussions with Logistics, Dispatch, Production, and Transport teams.
Assess
Assessed vehicle deployment practices, freight cost structure, load planning process, trolley design specifications, and transportation vendor arrangements. Evaluated whether vehicle selection was aligned with actual load requirements.
Identify
Identified that during August and September, trucks were deployed for transporting only 2–3 trolleys per trip, resulting in significant underutilization of vehicle capacity. Further identified that Tata 407 vehicles, costing lower per trip, were not being utilized due to trolley height constraints. Additionally, trolley return operations costing per trip were being performed using trucks instead of lower-cost alternatives.
Analyze
Performed load utilization analysis, vehicle capacity assessment, trolley specification review, route-wise transportation cost analysis, and feasibility assessment of alternative vehicle deployment. Evaluated cost-saving opportunities through modification of trolley dimensions and optimization of return logistics.
Recommend
Recommended redesigning trolley specifications to accommodate loading within Tata 407 vehicle dimensions, revising vehicle deployment norms based on load quantity, optimizing return logistics using Tata 407 vehicles, and implementing a vehicle utilization monitoring framework.
Implement
Assisted management in evaluating trolley design modifications, developing vehicle deployment guidelines, establishing transportation cost monitoring mechanisms, and creating route-wise vehicle utilization reports.
Monitor
Established periodic review of vehicle utilization, route-wise freight cost analysis, transportation KPI dashboards, and management reporting on realized logistics savings.
Outcome
Reduction in outward freight cost and reduction in trolley return cost. Improved vehicle utilization, optimized transportation costs, and strengthened logistics planning and monitoring framework.
