Growing retail demands improved service solutions: DIESL
Growing retail demands improved service solutions: DIESL

The retailers today have realised the importance of integrating supply chains, managing inventories and ironing out logistical issues. Keeping in mind the need to go Omni-channel, retailers are roping in 3PL logistics suppliers for hassle free operations. The growth of the retail sector has undoubtedly put immense pressure on supply chain companies to improve and build end to end service solutions in its true sense. As a 3PL service provider we must now invest in and build equal capabilities in inbound collection, forward, and reverse logistics, says Vikram Mansukhani Head Business Development & Corporate Services, DIESL during a conversation with Retailer media.

How have the needs of Retailers evolved for SCM as they are rearing for Omni-channel capabilities?

The retail world has constantly used customer impulse as the trigger to position new and existing commodities within easy reach of the consumers. As the economy at large provides lesser and lesser time for consumers to do what they like to do versus what they have to do, the ‘window of impulse’ keeps getting smaller and therefore mandates a complete “in your face” availability of products.

From walking across to the next door provision store and willing to wait for products even up to 2-3 weeks if they were unavailable, consumers are now demanding 2-4 hour deliveries from the comfort of their armchairs and workstations.

All of this requires retailers to set up an extremely agile, reliable and geographically wide delivery network to ensure that competitors are not able to slip in their product/s before them. Needless to say, the crux of the game lies in the management of logistics once you have decided which market you would like to play in.

Availability of multiple forward stocking locations, early AM and late PM deliveries, COD capability, trained staff at all levels who have some basic understanding of the product and most recently the ability and willingness to handle returns are some of the key requirements from retailers in an Omni-channel environment.

How do you enable effective collaboration between all partners of the supply chain - vendors, production plants, transportation, e-Retailer and retail in the most efficient manner and less cost to retailer?

The growth of the retail sector has undoubtedly put immense pressure on supply chain companies to improve and build end to end service solutions in its true sense. As a 3PL service provider we must now invest in and build equal capabilities in inbound collection, forward, and reverse logistics.

While doing so we must be mindful of ensuring that the vehicles, manpower and technology are optimally used so that inefficiencies in doing so do not result in wasteful cost increases along the entire supply chain. The repeated focus has to be on just-in-time, zero pilferages and breakages.

How do you work in collaboration with retailers to reduce their logistics complexity which arises from fragmented channels & increased product variations?

At the very outset it is important for us as a 3PL service partner to understand the maximum possible cost outlay for the retailer as part of his business model. Once done it is equally critical to set right the expectation of retailers and the end consumers.

Providing shared utilization of warehouse facilities, infrastructure, manpower and vehicles would be the only way to ensure that the retailers “pay per use” and can in turn set delivery expectation timelines with their end customers or decide to charge premiums for urgent and dedicated deliveries. 

How do you bring Optimization on local and regional level & enhance visibility of product flows?

A good operating process coupled with technology is the only way to optimize the costs and ensure visibility of the product at every stage of the supply chain. At DIESL, our mantra is to maximize three-way integration between customer ERP, our Warehouse Management System (WMS) and our Transport Management System (TMS).

This allows for uninterrupted data exchange and visibility right from the time the end customer places an order. Payment checks are initiated, orders are dispatched to warehouse operators, picking and packing is done, shipments are dispatched with defined delivery schedules and finally received by customers and acknowledged through a POD – all this is monitored through the integrated IT solution.

At each point in the process a scan generated through bar code scanners or manual key entry provides visibility to all stakeholders on the whereabouts of the product ordered and also allows for replenishment cycles to be triggered.

Please give us a detailed account of your logistics services for Retailers & who are your clients – since when they have been working with you and your increased portfolio of services to them over the year. 

Almost all our Consumer Durables, Telecom and Hi-tech; and FMCG customers cater to a fairly large section of modern retail stores. Ensuring that orders are made available in short time windows, zero pilferage and damage and coordination of returns are key features of dealing with these retailers.

Given DIESL’s extensive geographical reach, trained manpower, 100% adherence to regulatory compliances and a robust IT platform that allows complete real time integration with most leading ERPs, we are a natural choice for a preferred service partner for retailers. Retailers can now ensure that they concentrate of sales and marketing strategies, while we take care of their integrated supply chain requirements 24x7x365.

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