1. CASE STUDY
Background
The Client: The client is a leading player in core education and is set to ride on the increasing
demand for quality education and development with the fastest growing chain of K-12 schools
and India’s No 1 chain of pre-schools in its portfolio. With over 1500+ pre-schools in more than
550 cities across the country, this educational institute is the largest pre-school chain in
Asia. This institute is now the second largest network of schools in the private-unaided category
with over 86 operational schools present in 72 cities across the country. This educational
institute also acts as a consultant and provides education management and advisory services
including school set up assistance, teacher training, assessment, teaching materials, branding
and enrolment assistance.
Problems faced by the Client
The client has worked with 3 or 4 LSPs before but faced few challenges:
1. Pan India Registration – Client’s business model requires sale and delivery of kits of
various sizes to Business Partners (BP) in pan India locations, even to Out of Delivery
areas (ODA). Existing LSPs and the client do not have pan India registrations for sale
(TIN). Most of the BPs are also unregistered.
2. Kitting Operations – This was a major challenge as existing LSPs could not cater to
gaps in company forecast related to number of kits required for that period,
resulting in lower kitting efficiency/productivity and product shortage and delays in
implementation at BPs. In case of load increase, there was shortfall in the number
of kits produced, as LSP couldn’t make more kits with short deadlines
3. Large number of SKUs and various sizes of Kits – The client has more than 8000
SKUs which have to be bundled together in kits of various sizes
a. Small Child Kits for preschool and kindergarten
b. MLZS – Mid-sized educational kits (for standards I to VIII)
c. VLSK – Very large School set up kits containing everything from furniture
to stationary
4. Problem in generating waybills -The customer was not able to generate waybills
and do local VAT billing due to non-availability of TIN numbers of the end
customers. Due to this problem, customer was also not able to take input VAT
credit.

2. Solutions Provided by DIESL
1. One Point Contact - DIESL offered one point of contact for end to end logistic
requirements along with consignment sales model which helped the customer get rid of
hassles involved in process of getting waybills, road permits, sales tax assessments etc.
DIESL also offered variable model of billing to the customers wherein they were charged
based on the customer’s sales.
2. Consignment Sales Model (CSM) – Through CSM client can place their inventory with
DIESL for selling while retaining ownership of the goods until they are sold. DIESL has
TIN registrations across India; we now sell the goods on behalf of the client according to
their pre-defined instructions (price) in the identified geographies to their target
audience, in accordance with the marketing strategy commissioned by the client.
DIESL’s a pan India operations, integrated warehousing and transportation network,
strong ERP and experience in CSM is helping to drive our customers’ business towards
profitability without additional investment on manpower and infrastructure. The client
can now expand anywhere in India and also use DIESL’s SAP for configuring inventory,
supplier integration and agile order fulfillment.
3. Warehousing Operations and Inventory Management – DIESL provides warehouse
services and space, manpower and inventory management, and related services to the
client. DIESL has provided a dedicated mother warehouse (MWH) facility at Bhiwandi
(Maharashtra, India) to the client measuring 36000 square feet in area where DIESL
manages upwards of 8000 SKUs for the client. In addition to this DIESL has deployed 26
Nodal Warehouses (NWHs) for the client of which 24 operate on DIESL CSM. These
NWHs maintain specified quantity of kits to enable agile deliveries to BPs. The MWH is
fitted with CCTVs and has round the clock security to ensure safety of goods at the WH.
Special area has been allocated for the client’s quality team to check and certify the
excellence of the products received/dispatched.
4. Secondary and Last Mile Transportation – DIESL provides 2 leg transportation solution
to the client – Secondary transportation of Kits from MWH to NWH and Last Mile
Deliveries from NWH to BPs based on orders generated
5. Kitting/Packaging/Repackaging Operations – Based on forecasting by the client for Kits
required for a particular period, DIESL projects and deploys manpower in 2 shifts at the
MWH. As soon as the inventory (separate SKUs) is received at the warehouse, they are
sent for Kitting after GRN entry. Ready kits are barcoded and entered into DIESL’s WMS
(Warehouse Management System) for easy location mapping and generating inventory
trend reports. Daily MIS related to number of ready kits and dispatched kits are shared
with the client at the end of each business day. DIESL has been consistently able to keep
up with changes in forecast and manage manpower in a way that we are able to meet
TAT while catering to higher loads.

3. 6. Consignment Sales Model - DIESL offered consignment sales model to the customer.
This model helped the customer in doing local VAT billing without getting into hassle of
tax registration at all the states. This also enabled the customer to take benefit of input
VAT credit since the goods were sold on VAT. DIESL’s variable model billing helped the
customer in terms of budgeting the end to end logistic spend.
Month wise KPI - KPIS are signed off every month and they showed improvement in all
delivery, last mile and invoicing TAT figures and also in kitting productivity.
Month wise ON TIME GRN
Delivery status – Last Mile - Efficiency from the start of operations in April 2016, have
remained more or less stable despite peak season pressure (Peak times are April, May, June).
Kitting Productivity: Kits produced per month by DIESL
MONTH
STO
COUNT
INVOICE
COUNT
KITS
Full
VLSK
Transition
Part
VLSK
Inward Inward Outward Outward
C/MLZS MLZS Kit SKU Qty SKU Qty
Apr-16 230 1835 20516 9148 29 3 40 918 791757 1016 953717
May-16 185 1842 11631 5586 17 7 42 631 1920567 1130 1506366
Jun-16 147 2219 16437 2203 39 6 12 306 271709 983 9805521
Jul-16 181 1785 4551 0 21 4 84 221 139112 1120 1459235
The average invoice count and delivered number is given in the below table.
Invoice Count Delivered
ZONE APR MAY JUNE JULY APR MAY JUNE JULY
EAST 573 214 148 275 569 214 145 255
Month ON TIME GRN
Target Achievement
Apr-16 123 119
May-16 114 110
Jun-16 123 107
Jul-16 88 78
Month Delivery Status -Last Mile
Target Delivered Intransit
April 1815 1815 0
May 1842 1842 0
June 2215 2215 0
July 1728 1726 2

4. JAMMU 19 15 4 7 19 15 4 5
NORTH 263 138 75 268 261 138 75 267
NORTH-
EAST
22 2 6 13 22 2 6 13
SOUTH 441 971 1186 489 440 971 1186 454
WEST 517 503 800 733 504 502 799 732
Grand
Total
1835 1843 2219 1785 1815 1842 2215 1726
The average Delivery TAT per Location against SLA from April to July 2016 is as given below:
The above table shows 100% delivery TAT achievement against SLA in the month of May and
June and 99% and 97% delivery TAT achievement in the month of April and July respectively for
PAN India location. May month is showing 100% TAT delivery achievement in all zones. The
table also shows average 80% on time delivery TAT in all Zones.
Outcome: Apart from on time GRN achievement, last mile delivery efficiency, kitting
productivity and 100% delivery TAT achievement, DIESL’s professional approach towards
warehousing & distribution also enabled the client to achieve the followings which has helped
them to deliver the right products and in time throughout PAN India.
 Customer is not required to deal with different parties for different legs of supply chain.
 Customer is fully compliant in terms of taxation formalities.
 Monthly reconciliation of accounts is done through sales reports; sales return report
and inventory reports.
 Reduction in time to market the product during the peak season as kits are stored at all
the state warehouses as well.
On Time Delivered As Per TAT Delivered TAT % On Time Delivered TAT %
ZONE APR MAY JUNE JULY APR MAY JUNE JULY APR MAY JUNE JULY
EAST 550 206 125 240 99% 100% 98% 93% 97% 96% 86% 94%
JAMMU 19 15 4 5 100% 100% 100% 71% 100% 100% 100% 100%
NORTH 246 130 74 206 99% 100% 100% 100% 94% 94% 99% 77%
NORTH-
EAST
14 2 5 6 100% 100% 100% 100% 64% 100% 83% 46%
SOUTH 433 822 1050 428 100% 100% 100% 93% 98% 85% 89% 94%
WEST 424 372 624 494 97% 100% 100% 100% 84% 74% 78% 67%
Grand
Total
1686 1547 1882 1379 99% 100% 100% 97% 93% 84% 85% 80%