The opportunity costs of robbing retailers of gasoline, time, money, and underused miles are immense. Finding a practical strategy to fill these kilometers may reduce the supply chain's cost, boost logistics efficiency, and strengthen its competitiveness.
The need to go sustainable has been rising among manufacturers and consumers to bring world change. As a result, environmentalists worldwide are getting incorporated with leading FMCG brands to bring change in every way possible with authentic brand storytelling.
It would inculcate sustainable values/ goals in all aspects of business, such as:
- Reducing Carbon footprint in business operations with sourcing alternative & more enhanced ways.
- Cutting down the use of paper across the organization to as minimal as possible.
- Building better human resources for shaping the future tomorrow.
- Adopting marketing techniques and strategies that offer products and environmental awareness to consumers.
- Reducing logistical and distribution costs by filling empty miles & many more...
We at Qwipo firmly believe in building a better tomorrow by setting some of the best business practices and management. Some believe achieving sustainability means sacrificing revenue to build a sustainable value network. But, on the other hand, they complement one another. In this blog, we will understand and resolve the matters arising from the operation's logistical supply part and how we have been maximizing retailers' revenue by filling empty miles as b2b grocery suppliers.
Challenges faced by B2B Grocery Suppliers in the Indian Retailing Segment
Before we start on the logistical part, let us dive into the complex and diverse nature of the Indian retailing market. India consists of and works as a mix of Organized refers to licensed retailers, i.e., those registered for sales tax, income tax, etc. & Unorganized retailing means the traditional form of low-cost retailing, e.g., corner stores (Kirana or grocery shops), owner-manned general stores, Cigarette shops, convenience stores, hand carts, pavement vendors, etc. Only 3-4% form the Organized retailing, while the remaining 96% stake resembles Unorganized retailing. An estimation is that less than 4% of the unorganized retailers have stores larger than 500 Sq. Ft.
Unorganized retailing is considered and remains a prolific & visible form of retailing in India after the advent of the Digital India initiative, whose main objective is to improve online infrastructure and increase internet accessibility among citizens. The reason behind the Indian retailing sector being fragmented or unorganized can be attributed to its entrenched poverty. Even a large number of educated unemployed excessive labour seek refuge in the face of joblessness & poverty. However, due to the lack of stability or rigid state of the unorganized retailing, it thus makes it a non-profit-oriented vocation and indeed just a mere source of livelihood.
India is geographically vast, spread with low, moderate, and high population densities all across the country.
The biggest obstacles for companies in the logistics industry to overcome were:
- Weak warehouse and distribution facilities.
- A lack of integration in transportation networks.
- Information technology.
The shortage of training facilities and the requirement for trained labour in the logistics sector are producing several problems for employees and logistics managers. A significant amount of material is lost, damaged, or deteriorates due to poor management and storage, especially in the perishables industry. Therefore, it is necessary to have good refrigeration storage, containers, and maintenance.
The main challenges are
- Developing the infrastructure,
- Handling the demands of diverse sectoral supply chains,
- Altering industrial laws to facilitate successful production & transportation of commodities,
- Implementing efficient management practices and technology to increase competitiveness.
With the rise in pay scales for the Middle-Income class, there is a rise in corporate-backed hypermarkets or supermarkets, retail chains, and privately owned large retail businesses which offer consumers cash & carry services and some as well as online delivery services.
We at Qwipo, B2B grocery suppliers, empower retailers by investing in technology-based solutions to boost productivity and promote ethical business practices. As a result, the retail sector is cutting transportation distance and fuel consumption, increasing vehicle efficiency, streamlining routes and tours, and improving inventory management to lessen its carbon footprint.
Technology and e-commerce have radically changed B2B business models and consumer involvement in fragmented retail (independent small grocers, catering managers, and restaurants) through online ordering and delivery. However, the B2B grocery suppliers segment of the value chain, which runs from the farm producers via the market distributor and wholesaler to the retailer, has yet to be similarly impacted by digitally enabled business models. This area has, therefore, extensively not altered in decades.
No other B2B Grocery suppliers were able to demonstrate the solution to the store and how retailers might take advantage of chances for route consolidation and raise their KPI for empty miles. Once placed in the system, we demonstrated that their orders could execute optimization in the background without interfering with the retailer's work.
Qwipo, as B2B Grocery Suppliers, put the implementation into our service outreach locations. Additionally, Qwipo's team carefully collaborated with the shop owners to guarantee that its retailers successfully adjusted to a dynamic, KPI-based planning method.
As B2B grocery suppliers, we took things further by improving and speeding up the retailer's delivery. As a result, our solution eventually upgraded the retailers and shop owners with a scalable system for expanding operations.
Our service based retailers get loads of in-store/ walk-in customers. We create a fully optimal delivery time using the solution powered by ground-breaking technology. We also continuously improve the plan to account for modifications, interruptions during the day of operations, and new shipments.
The solution efficiently integrates with the company's in-house transportation communications system. For instance, the messaging system provides information to the solution as real-time feedback for any necessary plan revisions. In addition, it gets updates on the order's whereabouts and estimated time for delivery.
The retailer aimed to timely and cost-effectively transport all cargoes from vendors to distribution centers to shops. As a result, it overcame a massive logistical problem involving scheduling schedules for thousands of daily shipments and drivers.
Reducing empty miles was our key objective. But we first needed to raise the KPIs for expected shipment volume and service levels for vendor and store pickups. The shop previously depended on a conventional method of excellent supply. However, merchants were forced to make choices based on the visibility of a finite number of freight and product locations and the need to react rapidly to weather-related delays, motorised issues, and last-minute demands.
With our technology's help, retailers can save a significant amount of money thanks to fewer empty miles and improved planning for the tens of thousands of daily shipments and drivers. In addition, the shop may achieve more efficiency and reduced costs by utilizing dynamic shelf planning, ultimately solidifying its market position.
The following goals are supported by Qwipo's B2B Grocery Suppliers for the retailer:
The most crucial goal for retailers
By managing exceptions, retailers can maximize their time and concentrate on essential activities. Additionally, retailers don't need to organize or consider sourcing from other locations since we work in distribution.
Reduced centre of gravity with innovative routing
By placing orders that bypass centre point locations more frequently, retailers may maximize efficiency advantages while minimizing our need to divide trips between them and their customers.
Ability to make longer-term plans
With the help of our technologically advanced solution, shops can observe up to 48 hours in advance and are better equipped to handle incoming shipments on the day of operations.
Real-time positions of goods
With the help of our service, shops may receive real-time feedback and react promptly to alterations like last-minute shipments and traffic jams. Consequently, they can alter strategies to produce results that still fit corporate objectives.
On-time deliveries that boost revenue
Retailers may now pick up more freight from vendors thanks to our service. As a result, retailers are better stocked and have more inventory available, which increases sales.