FIFO Process Implementation for Perishable Goods 3PL Company in India

Goloo Inc.
We used our expertise in Supply Chain Domain along with Analytics to redesign the process of Perishable Goods Warehousing.

Business Objective

Leading Indian 3PL company manages organic perishable goods warehousing and mid mile distribution. Client handles One Lakh Sq. of warehousing space and average daily distribution of 50 tones in three shifts of 24 X 7 operations. 3PL contract demands set limit son wastage and to handle this scenario client wants to implement processes in quality check and FIFO for material handling.

Challenge

1. Lifespan of these goods is three to six days days and have to go through the firstmile, warehousing and distribution.

2. Digital history of material movement is not available and no record is maintained fordegraded or waste material.

3. Staff training, Quality check and material handling are among other issues that needto be addressed.

Solution Methodology

We initiated the project with a duration of six months at the end of which bi-directionalaudit needs to be conducted from 3PL company and client of the 3PL company. In the spanof these six months we completed below process implementations and successfully passedthe audit as per the contract.1

. Digitization of transaction records structured as per grade, vendor, product and datetime. This gives a view on the demand pattern.

2. Warehouse measurement for movable assets, immovable assets and open storageareas. This helps us prioritize the space.

3. Space allocation for products by grade (quality), by process (feed, grade, store,indent, load) and by demand (tonnes per day).

4. Staff training to implement a digital process for capturing data on inventory control,replenishment, orders, and transportation.5. Doc allocations, transportation schedule management and quality check process areamong the other processes implemented.

Impact

1. Inward quality check reduced the amount of material degradation within thewarehouse and also returned from customers.

2. FIFO implementation ensured best quality to customer, low returns and materialdegradation due to mixing of grades.

3. Audit results showed 3PL performance not only within limits but also 50% lower whencompared to last year.

Impact in Numbers

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