Client Profile
A major medical equipment manufacturer serving customers across India. The company needed to improve its distribution network and achieve faster delivery across a large number of locations, including small towns and remote areas.
Business Challenge
The client was distributing products pan-India from a single state in Punjab. This created challenges in achieving the required delivery turnaround, particularly because many customer locations were in smaller towns and remote areas.
The business needed:
- Pan-India delivery within 3 days.
- A distribution network closer to major demand centres.
- Better workload distribution across warehouse operations.
- Accurate order processing.
- Reliable transportation to remote and smaller towns with pin-code level selection.
- Digital tracking and proof-of-delivery (POD) capabilities.
The challenge required coordination between warehousing, regional distribution and transportation rather than solving delivery speed through transportation alone.
AAJ's Approach
AAJ analysed the client's sales data to understand demand across different regions. Based on sales volumes, AAJ proposed regional distribution centres at key locations.
Execution details:
- Regional Distribution Network: Introduced regional distribution centres to bring inventory closer to customer demand while taking end-to-end responsibility for warehousing and transportation.
- Pin-Code Level Transport Planning: Evaluated transporter capabilities and finalized a pin-code-level transporter selection model based on relative regional carrier strengths.
- Digital Transport Visibility: Selected transport partners offering live shipment tracking, digital infrastructure and Proof of Delivery (POD) retention.
Results
The client initially started with one distribution centre to test the solution.
After successfully implementing the model, the client expanded to an additional distribution centre within six months.
The new distribution structure helped the client achieve a 3-day turnaround for 90% of orders, excluding only extremely remote and Out-of-Delivery-Area (ODA) locations.
Key Outcomes
| Metric | Outcome |
|---|---|
| Delivery Turnaround SLA | 3 Days |
| Orders Delivered Within 3 Days | 90% |
| Initial Distribution Centres | 1 DC |
| Additional DCs Added | +1 DC within 6 months |
| Distribution Coverage | Pan-India |
| Services Managed | Warehousing + Transportation |
Long-Term Business Impact
The regional distribution model created a scalable foundation for the client's growing business.
After successfully starting with one distribution centre, the client expanded to another location within six months.
The model also provides a framework for adding more distribution centres as business volumes increase, allowing the distribution network to scale in line with demand.
