Case Study
How Varuna Logistics built an effective main transportation infrastructure to enable top
pet food producers in India increase their profitability?
About Varuna Logistics’ Client: Customer (FMCG Co.) is a prominent pet food company in
India and a member of one of the foremost conglomerates in the nation. The firm was positioned
for success with a double-digit growth rate and a pan-Indian footprint, but one major obstacle
stood in the way: ineffective logistical operations.
CHALLENGES
For its principal transportation needs, the firm was working with several unorganized local
service providers, which created a variety of challenges:
1. The lack of a nearby transportation hub is causing delays in placement.
The company's production facility is located in a secluded area of Raipur, far from any major
transit hub. It engaged a number of vendors to address this, but even after bringing up an invoice
for seventy-two hours, the business was not assured that cars would be put. Because of this, it
also had to hold more inventory than was required to guarantee distributors would always have a
supply.
2. Inadequate Load Optimization Caused Damages While in Transit
Although a 32-foot multi-axle containerized truck would have been the optimal means of
transporting its products, the firm was forced to use whatever vehicle the transport service
providers had available. Because the company's packages were hefty yet heavy, they frequently
squeezed in another sort of commodity to make the most of the available space and increase
throughput. Additionally, the local carriers engaged in dishonest business methods by packing
items from several clients onto one vehicle, seriously damaging the shipments in the process.
3. Higher Transit Times + Operational Inefficiencies = High Working Capital
The company's transit times remained notably long due to its collaboration with unorganized
transport service providers, which increased the overall cost of transporting merchandise.
Furthermore, the organization's logistics operations were plagued by subpar procedures and a lot
of manual labor due to these associations, little technology assistance, and inexperienced team
members. As a result, the error margin increased sharply, ultimately resulting in a large working
capital loss for the business.
These difficulties were having an impact on the company's two main growth areas:
How Varuna Logistics built an effective main transportation infrastructure to enable top
pet food producers in India increase their profitability?
About Varuna Logistics’ Client: Customer (FMCG Co.) is a prominent pet food company in
India and a member of one of the foremost conglomerates in the nation. The firm was positioned
for success with a double-digit growth rate and a pan-Indian footprint, but one major obstacle
stood in the way: ineffective logistical operations.
CHALLENGES
For its principal transportation needs, the firm was working with several unorganized local
service providers, which created a variety of challenges:
1. The lack of a nearby transportation hub is causing delays in placement.
The company's production facility is located in a secluded area of Raipur, far from any major
transit hub. It engaged a number of vendors to address this, but even after bringing up an invoice
for seventy-two hours, the business was not assured that cars would be put. Because of this, it
also had to hold more inventory than was required to guarantee distributors would always have a
supply.
2. Inadequate Load Optimization Caused Damages While in Transit
Although a 32-foot multi-axle containerized truck would have been the optimal means of
transporting its products, the firm was forced to use whatever vehicle the transport service
providers had available. Because the company's packages were hefty yet heavy, they frequently
squeezed in another sort of commodity to make the most of the available space and increase
throughput. Additionally, the local carriers engaged in dishonest business methods by packing
items from several clients onto one vehicle, seriously damaging the shipments in the process.
3. Higher Transit Times + Operational Inefficiencies = High Working Capital
The company's transit times remained notably long due to its collaboration with unorganized
transport service providers, which increased the overall cost of transporting merchandise.
Furthermore, the organization's logistics operations were plagued by subpar procedures and a lot
of manual labor due to these associations, little technology assistance, and inexperienced team
members. As a result, the error margin increased sharply, ultimately resulting in a large working
capital loss for the business.
These difficulties were having an impact on the company's two main growth areas:
