Identification of Revenue Leakages

Client : A French Logistics Company

Service Offered : Business Process Review

Sector / Industry : Logistics Service Providers

Context

Revenue Leakage Identification Case Study | Nexdigmtribution services/ carrier management services based out of Pune, Maharashtra. It is a private independent group founded in 1967. The client does not own any vehicle, instead hires the vehicles as required from various suppliers. Therefore, commission is an important source of revenue. The client is managing 90+ warehouses across 30+ locations and handling 4.5+ million square feet of warehousing space. In financial year 2018-19, the company reported revenues of INR 1,650 million.

Challenge

The management wanted to review various processes related to logistics, sales, and operations. The client approached Nexdigm for professional services in terms of various challenges highlighted below:

Complex manual data maintained at multiple locations made it difficult to review, reconcile, and analyze
Data maintained in manual excel trackers; it was not sanitized and changes made by numerous teammates were not captured
Complex framework comprising of multiple contractual vendors for providing vehicles on multiple routes. Hence, it was difficult to identify the most economical vendor for an individual route
On-boarding of ad-hoc vendors through telephonic discussion and a lack of documentation to verify the agreed terms

Impact

Nexdigm’s guidance and suggestions were well received by the client and the client appreciated our solutions.
Revenue leakage aggregating to INR 43 lakhs was identified by the Nexdigm team.
Operational loopholes were exposed and assistance was provided to plug the gaps.

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