Client Challenges
- Absence of orderly purchase planning
- Working capital blockage due to high dead stock
- Frequent fraud incidents at stores
- Heavy penal charges levied by brand owners
- Loss in revenue by not claiming supplier back-end schemes
- No clarity in finance-backed sales and claims
PKC Solutions
- PKC ran an end-to-end operations transformation program
- Standardized the ordering mechanism based on sales, existing stock and transit quantity
- Ticketing mechanism to ensure effective interdepartmental communication
- Implemented the exceptions and errors indicators to reduce the penalty and fraud
- Regularization of stock clearance at periodic intervals
- Introduced a robust system to track supplier back end schemes
Results
- 36% drop in packaging cost
- RS 27 lakhs P.A. saved on revenue leakage
- ~82% reduction in penal charges
- 11% reduction in stocks without reduction in sales
- Risk of errors and frauds reduced minimally
- Led to higher operational efficiency with scalability for future expansion
