Distribution to retailers in the Indian paints market is a very demanding & complex
process with retailers keeping more than a couple of days of stock at best. This
results in frequent, low quantity orders being placed 2-3 times a day by a single
retailer.
Beacon is working on reduction of tertiary distribution costs through a mix of Process
Reengineering and DA. This encompasses
- Redefining market clusters
- Shifting from simple but costly case based contracts to a more complex multi layered
transportation solution
- Developing a user friendly optimization application to handle the increased complexity
in routes and contracts
- Strengthening exceptions handling procedures
Estimated savings are to the tune of 15 – 20% while adhering to strict service
standards.