E-Commerce Platform Leverages Dista Insight to Improve Supply Chain Network Design

Value Delivered

40%

reduction in logistics and fulfillment costs

Strengthened

supply chain network design

Intelligent

insights to set up distribution centers

Background

The customer is a leading e-commerce player that aims to empower small businesses. The social commerce app mainly focuses on buyers and sellers across tier 1, 2, and 3 cities. It was paying high costs for deliveries and needed a system to make them efficient, reduce costs, and improve resource utilization of delivery agents and vehicles.

Challenges

The company relied heavily on third-party vendors and courier services for their first and last mile delivery orchestration. This led to heavy expenses, longer delivery periods, and a lack of resources to offer next-day delivery.

The e-commerce company was looking for a supply chain network design to build and manage its own infrastructure by setting up distribution centers (DC) to cover maximum areas, increase delivery volume, and reduce costs.

Solution

Let’s learn how the e-commerce platform leveraged Dista Insight to streamline first and last mile delivery with cost reductions.

Dista’s spatial analytics software mapped all onboarded retailers in a particular area and created clusters by factoring in multiple parameters like distance traveled by delivery agent in a day, number of orders per cluster, and more.
The system then created a territory to identify and recommend the most suitable location for a distribution center and helped in the resource allocation of delivery executives for each DC.
Dista Insight ran multiple simulations with custom business rules to create optimal clusters to define territories.
Our robust AI/ML-based engines calculated the cost per shipment (CPS) in addition to distribution center cost, travel cost, etc.

Highlights

Reduced overall costs by orchestrating first and last mile in-house with Dista Insight
Removed outliers by facilitating data cleansing
Calculated the crucial metric of cost per shipment
Forecasted resources considering the number of orders from each area

See How Enterprises Leverage Location Intelligence with Dista

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“Dista Insight helped us identify the most suitable locations to set up DCs, improve geographical coverage and delivery volume, thereby reducing our fulfillment costs. Their spatial analysis software designed an optimized first and last mile supply chain network.“

“By leveraging Dista Delivery, we are delivering over 2,000 orders/month across 700 stores. Their system helped our store managers get real-time visibility on delivery execs and enabled them to allocate orders automatically.”

“Dista Deliver enabled us to orchestrate our complex hyperlocal delivery ops. We leveraged their robust hybrid model for 600+ self and DaaS riders. They helped us fulfill over 1.2 lakh orders/month pan India across 300 stores.”