Future-Ready Warehousing and Procurement Optimization for an FMCG Giant

Industry: FMCG & Retail | Client: Zydus Wellness

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Zydus Wellness is a leading FMCG company specializing in health and wellness products. As the company expanded its operations, it required a comprehensive transformation of its supply chain network, including warehouse optimization and procurement cost reduction. The goal was to develop a future-ready supply chain capable of catering to traditional retail, modern trade, and e-commerce efficiently.

Challenge

Zydus Wellness faced inefficiencies in its supply chain due to an excessive number of warehouses, resulting in high operational costs and suboptimal distribution. Additionally, procurement costs for raw materials (RM) and packaging materials (PM) were escalating, impacting overall profitability. The company needed a strategic approach to optimize its network while ensuring supply chain agility.

Solution

• Conducted an end-to-end network planning exercise to optimize plant and warehouse locations, leading to the reduction in the number of warehouses without impacting service levels.

• Developed and implemented a future-ready warehouse model, ensuring seamless operations across traditional retail, modern trade, and e-commerce channels.

• Introduced procurement cost reduction initiatives for key categories such as raw materials (RM) and packaging materials (PM), improving supplier efficiency and reducing costs.

Outcome

• Optimized warehouse network, reducing operational costs while maintaining service efficiency.

• Established a multi-channel warehouse strategy, ensuring better fulfillment for traditional retail, modern trade, and e-commerce.

• Achieved significant procurement cost savings in raw and packaging materials, improving overall profitability.

• Enhanced supply chain resilience and scalability to support business growth.