Highlights of the Case Study:
|Client||An India-based CPG giant wanted to streamline its supply chain operations for better visibility.|
|Business Challenge||Our client’s production and delivery processes were fragmented, spread across different manufacturers and suppliers. The model was cost-efficient in the pre-pandemic market. The client needed to recalibrate processes for the post-pandemic scenario.|
|Impact||Quantzig’s supply chain analytics, IoT, and digital twin technology helped our client achieve better visibility over its supply chain and, thus, enhance customer satisfaction.|
Game-Changing Solutions for the CPG Industry
The demand for consumer-packaged goods (CPG) is rising beyond market expectations in the post-pandemic world. The contagion effect of consumer demand and surging manufacturing costs affect companies’ bottom-line. To survive in this ever-changing and challenging market, players have started accelerating their reach in the market to retain valuable customers.
Budget constraints, supply chain disruptions, and shifts in consumer behavior amid soaring demand have transformed the CPG industry. Quantzig’s Internet of Things (IoT) technology and sensor data analytics solutions allow companies to get clear visibility by establishing smart supply chains. IoT-enabled supply chains can optimize production processes and safeguard end-product in transit, thereby enhancing efficiency and customer service. IoT-enabled sensors provide real-time asset monitoring throughout the chain. Sensors can extract multiple equipment status variables that affect raw materials and end-product quality.
The Challenges of the CPG Giant
Our client is an India-based CPG giant whose supply chain was designed and executed a decade ago. Our client’s production and delivery processes were fragmented, spread across different manufacturers and suppliers. Their supply chain model involved procuring raw materials from a different country, producing goods in another country where labor is cheap, and outsourcing distribution and logistics operations to a different source. The model was cost-efficient in the pre-pandemic market but was not so profitable in the present scenario. The client approached Quantzig to leverage our expertise in streamlining supply chain operations for better visibility.
This fragmented supply-chain model could not sustain itself in the post-pandemic world as the cross-border movements came to a complete halt. Our client faced the following challenges because of the lack of visibility into its supply chain –
- Inventory run-outs or excess inventory at multiple points in the supply chain
- Unable to track the delay in consignment delivery, leading to loss of valuable customers
- A 20% fall in the share price (our client is a publicly listed company)
- Rising operating costs and shrinking profit margins
- Lost valuable customers to its rival companies
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Supply Chain Management (SCM) Solutions for CPG Industry
We defined the client’s challenges into problem statements and came up with a two-phase solution:
Phase 1 – Quantzig’s IoT technology and sensor data analytics solutions converted the client’s traditional supply chain to a smart IoT-enabled supply chain network that identified delays in transit and allowed for route optimization and contingency planning. The data gained from the sensors, such as the temperature required for perishable goods, transit time, and sales data, was used for forecasting demand, thereby improving timely deliveries and quality control.
Phase 2 – Once the supply chain was integrated and IoT enabled, the client could receive real-time data on the procurement, processing, distribution, and warehousing operations. Quantzig’s data analytics team fed this data from IoT sensors to our digital twin software to create a digital twin of the client’s entire supply chain in the cloud. This facilitated remote monitoring of the supply chain, leading to better visibility and proactive decision-making.
Impact Analysis of Quantzig’s Supply Chain Optimization Solutions
Quantzig’s supply chain analytics, IoT, and digital twin technology helped our client achieve the following benefits:
- Warehouse space optimization by procuring raw materials as per requirements, preventing stockpiling, and saving maintenance costs.
- The client could access inventory levels on time and plan the production to meet demand and provide timely delivery.
- The client could track the condition of raw materials at all transit stages.
- Implement alternate solutions for unfavorable conditions or inadequate staffing that affected the transit of goods.
Quantzig implemented supply chain analytics, IoT, and digital twin technology to optimize the client’s supply chain. The data-driven insights thus derived would help the client achieve higher profit margins and retain customers in a highly competitive industry. Implementing a real-time IoT-enabled supply chain solution created the synergy between inventory levels, product demand, and operations, thereby ruling out shortages and overhead costs.
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Broad Perspective on the role of SCM Solutions in the CPG Industry:
Top players in the CPG industry are coming to realize the competitive advantages of digitizing their supply chains. They need to optimize their operations to cater to the needs of consumers, which, in turn, requires complete visibility over the supply chain. Quantzig offers solutions that ensure end-to-end supply chain visibility, inventory optimization, and integrated distribution management systems. This is facilitated by adopting sensor technology at a cost-effective rate for businesses looking to participate in the IoT supply chain. With the widespread reach enabled by 5G networks, the IoT supply chain can be widely implemented in multiple industries. The ROI on investing in creating a smart supply chain is the potential savings that add up to millions annually.
- Improved visibility over the supply chain
- Optimization of operations
- Better management of inventory
- Customer retention due to timely delivery of products
- Higher profit margins resulting from optimum utilization
Recalibrate your processes for the post-pandemic world and get rid of all supply chain challenges!