A leading aviation company in India with a significant market share. Theclient operates in the Aviation sector with a focus on annual rate contracts(ARC) and Vendor Managed Inventory (VMI). Their primary procurementcategories include Business Supplies and Covid Essentials, leveraging theShakeDeal Marketplace technology.
The Challenge
Streamlining Indirect Procurement The client needed to streamline the procurement of business supplies to improve efficiency and reduce complexities in the supply chain.
Reliable Partner for Supply and Delivery SLAs he client required a dependable partner who could meet stringent supply and delivery service level agreements (SLAs)
Optimizing Cost and Cashflow here was a critical need tooptimize costs and improve cash flow management, especially forhigh-volume and fluctuating-price items.
Strategy and Approach
ShakeDeal's Intervention
Identification of High-Value Sub-Categories ShakeDeal workedclosely with the client to identify sub-categories within theirprocurement portfolio where immediate value could be added. Thisinitial step involved a thorough analysis of spending patterns, supplierperformance, and market conditions.
Just-in-Time Fulfillment For certain SKUs (Stock Keeping Units)that were critical but did not justify large inventories, ShakeDealimplemented a just-in-time fulfillment model. This approach ensuredthat the client received supplies precisely when needed, reducing theneed for extensive storage and minimizing inventory holding costs.
Vendor Managed Inventory and Quarterly Rate Contracts ForSKUs that blocked significant working capital and had fluctuatingprices, ShakeDeal employed a hybrid model combining VMI andquarterly rate contracts. This strategy freed up cash flow for the clientby reducing the need for upfront capital outlays and provided pricestability over several months. The quarterly rate contracts ensuredthat prices remained fixed for a set duration, protecting the clientfrom market volatility.
Utilization of ShakeDeal Fulfillment Network ShakeDealleveraged its own fulfillment network, including cloud-based anddedicated fulfillment centers (FCs), to manage the VMI modelefficiently. This network ensured that the client's inventory wasmaintained at optimal levels, and orders were fulfilled promptly andaccurately.
One-Stop Shop for Covid Essentials During the Covid-19 pandemic, ShakeDeal became the client's single-source supplier for all PPE (Personal Protective Equipment) needs. This included masks, sanitizers, coveralls, gloves, and other essential items, ensuring theclient's operations remained compliant with health and safetyregulations without supply disruptions.
Results
Enhanced Efficiency The implementation of just-in-time fulfillmentand VMI significantly streamlined the client's procurement processes.This led to reduced lead times, lower inventory levels, and improvedsupply chain efficiency.
Cost Savings and Cashflow Optimization The combination of VMIand quarterly rate contracts resulted in substantial cost savings. Bystabilizing prices and reducing the need for large upfront capitalinvestments, the client achieved better cash flow management andcost predictability.
Reliable Supply Chain ShakeDeal's robust fulfillment networkensured high reliability in meeting supply and delivery SLAs. Thisreliability was crucial for maintaining the client's operationalefficiency and ensuring continuous availability of essential supplies.
Comprehensive PPE Solution ShakeDeal's role as a one-stop shopfor Covid essentials provided the client with a hassle-free and reliablesource for all PPE needs. This comprehensive solution simplifiedprocurement and ensured the safety and compliance of the client'sworkforce during the pandemic.
Conclusion
The partnership between ShakeDeal and the leading aviation company demonstrates the effectiveness of strategic procurement solutions in addressing complex supply chain challenges. By identifying high-value sub-categories, implementing just-in-time and VMI models, and leveraging a robust fulfillment network, ShakeDeal enabled the client to achieve significant cost savings, optimize cash flow, and maintain a reliable supply chain. This case study highlights the importance of tailored procurement strategies and strong supplier partnerships in enhancing operational efficiency and resilience in the aviation sector.
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