Skip to main content

LSCM IN ( COVID 19 Pandemic )



The present status like emergency situation like COVID 19, I my self work in FMCG , and we are running the show still its a lock down.

The lock down is a situation where the options are less like less transportation, 3PL etc, so how the show can run ?

Its simple a strategy, but need to implemented before the lock down started pre planning .

1. Trained some manpower beforehand who are mainly localities

2. Some residential manpower need to keep.

3. Setup of operation via web so that can be controlled from anywhere, physical present is not necessary.

4. Distribute the distribution from a single warehouse to multiple location, as lock down might not be same for all place at the same time.

5. Keep some sets of transporter and vehicle need to be dedicated and vehicle at warehouse & factory end.

6. Choose some 3PL provider who run business on there own vehicle not dependent on market.

7. Choose different methods at same time like Direct Shipping, Shipping through Milk Run, Shipping through distribution center.

The strategy and plan need to make before hand, need to check routes as the vehicle movement is possible or not.

Shifting from FTL to PTL or LTL.

Clubbing routes, multiple point delivery on a single vehicle.

Shifting from 32 ft to 20 ft / 24 ft container consignment as order value has reduced.

Plan production and reducing the holding stock days as if the strict lock down implemented , materials with self life issue didn't get expires at warehouse end.

Proper Safety and security need to maintain as per WHO norms for the employees who is servicing in the pandemic situation and also incentives for them as they are real hero's. 


In the scenario freight optimization in some place is not possible but to cater the market and live up to the expectation is more necessary.

On a holistic approach need to understand the market scenario , need to change as per the situation, when the nation needs you.

Sumit Chatterjee
Senior Supply Chain Manager
Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division )

More than 10 + years’ experience in FMCG Supply Chain
CII Certified Supply Chain Management Professional
MBA Marketing & Finance from Future Business School
Post Graduate Diploma in Logistic & Supply Chain from St Xavier’s
Post Graduate Diploma in Export & Import Management from ICFAI University





 



Labels:

Comments

  1. legacymarbleandgraniteMarch 2, 2021 at 9:46 PM

    I read the above article and got some knowledge from your article which is about (LSCM) Logistics & Supply Chain Management. It's actually great and useful data for us. Thanks for sharing it. UPS Audit

    ReplyDelete
  2. SAFE STORAGEJune 10, 2021 at 5:06 AM

    I really want to thank the author for such a nice blog that helped me to understand why it is important. Storage Services

    ReplyDelete

Post a Comment

Popular posts from this blog

FREIGHT COST REDUCTION ( Own or Hired )

The challenges in every day life of logistics dept is to reduction of freight cost. So the homework need to be done on How ? Lets took   example If it’s a daily route somewhat near to warehouse its better to use own or dedicated vehicle Good Service 24*7 availability Proper coordination If there is some return goods can be managed on same freight Points known so less chance in delay Only thing need to consider if paying on per km , need to calculate on variables ( Fuel Price Escalation , Maintenance etc ) But on the same scenario If it’s a far of place & frequency is less Up Down costing will be more Long distance time coordination will be a issue Frequency is less so liability will also be less. On any scenario need to calculate, but always if the service is own its better but on serviceability point not on cost always . Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies...
2 comments
Read more

FREIGHT COST CALCULATION

  The important question is to how to calculate freight cost ?  The distance from x to y certain transporter want x amount . For Ex take certain parameters before negotiation PER TRIP FREIGHT Kolkata to Guwahati  present mkt rate Rs 60 k Distance 1010 km Approx.3.5 mileage so Diesel 78 / per liter Diesel costing approx. :- = 1010/3.5 = 288 ;  288 *78 = 22.5 k Standard time :- 5 days  So   Driver Salary 20 k , per trip approx. 5 k Maintenance monthly 10 k, per trip approx. 2.5 k EMI :- 20 k monthly, so per trip 5 k So costing coming around 35 k Misc 5 k Approx. 40 k will be grand total On per trip transporter is charging 20 k profit . If the homework is done , you are in a position with the parameters to negotiate and deal with a transporter . Its very much important to negotiate on the right path.  Also keep in mind payment terms , return load and market demand and supply for the same. For ex if there is no return load transporter will charge retu...
3 comments
Read more

FREIGHT COST CONTROL

As a organization freight cost increasing it’s a concern and the stereotypes are Fuel price escalation Driver salary increase Maintainace cost escalating No the above mention factor might not be the reason Factors affecting freight cost increase Geographical location :- For Ex If you are manufacturing at Kerala India and your main market is Jammu & Kashmir India , the position of the factory is wrong, need to concentrate on the same Product Weight :- Due to market competition if your product weight is getting reduced , your per kg transportation rate will increase. Packing size :- Concentrate on your pack size , if its bulky taking more space so less value materials can get travelled Product Margin :- It might be the scenario that some extra freight cost is there but as per profit margin it can be maintained. Freight Analysis :- Keep an eye on freight bill, if you are paying per km ( Up & Down ) or a fixed rate...
6 comments
Read more