Client
Leading Electronics Distributor
Industry
Technology
Solution
Real-Time Intelligence & Decision SupportA leading electronics distributor in India, generating over $200 million in revenue and serving a vast network of more than 10,000 customers across 29 states, faced mounting challenges in managing its logistics operations. The customer base ranged from large retail chains to small regional retailers, adding to the complexity of logistics planning.
Decentralized Logistics Decisions
Underutilized Container Space
Limited 3LP Vendor Options
The client's logistics decisions were decentralized and managed by regional teams, resulting in inefficiencies and rising costs. Key challenges included, the diverse scales of customer business and varied service levels led to a reliance on direct shipments, leaving containers underutilized and driving up distribution costs. Regional dynamics restricted the availability of third-party logistics (3PL) vendors, further complicating supply chain operations. The client required an optimized distribution strategy to plan shipments effectively, reduce costs, and improve service levels.
Quantzig approached the challenge by first designing a centralized order management system to streamline logistics operations. This mechanism enabled the aggregation of customer orders across regions, facilitating accurate calculations for container requirements. By centralizing the process, Quantzig addressed inefficiencies stemming from fragmented regional decision-making and improved visibility into container utilization.
To further optimize the logistics network, Quantzig devised a simulation-based hopping plan for underutilized containers. This plan was tailored to optimize container usage by factoring in service level agreements, distribution costs, and vendor performance metrics to ensure cost-effective and reliable operations.
The insights and recommendations generated from these efforts were seamlessly integrated into an interactive dashboard, enhancing their ability to respond to logistics challenges in real-time, allowing the client to make informed decisions quickly and efficiently.
Quantzig's solution delivered remarkable results, including a 37% reduction in distribution costs through optimized container utilization. Additionally, the client achieved a 42% improvement in On-Time-In-Full (OTIF) levels, ensuring higher delivery reliability.
These improvements significantly boosted customer satisfaction, as better planning and execution enhanced service quality and consistency across the client’s vast network.
