Business to Customer Logistics

In the Covid 19 Pandemic, logistic is a important role to play.

For Ex :- As sales down , loadability is a issue distributor not eger to take volume.

Then what's the option ?

Bulk Breaking

Arrange courier to deliver the same to pic the materials from warehouse to retailer .

Only packaging need to be good to enhance the visibility and damage reduction.

On the way it can be ensured that there is no gap in the market. Deal in bulk to reduce freight & calculate margin so in normal distributor did not complain for rate issue.

Design a APp and give a advertisement.

Think in some holistic way.

Sumit Chatterjee

Senior Supply Chain Manager

Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division )

Faculty member for Management Subject under Techno India University .

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

Certified Industrial Computerized Accountant

Comments

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...

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...

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...

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