Complex solutions in South Asia
Companies that operate in emerging markets all want to manage and distribute their products efficiently, moving inventory swiftly to keep costs low. That can play out differently from one market and company to the next, as it did with this FMCG producer, automotive manufacturer and clothing retailer.
Global fashion group In Pakistan
A Spanish multinational clothing retailer operates a supply chain with a complex network of more than 300 suppliers, buyers from 11 sites in four destination countries and a global distribution network of over 6,000 retail stores. The fashion group designs and manufactures almost all its products by itself, dispatching its newest fashions to stores every two weeks. Agility operates a 30,000 sq.ft. consolidation center for the group in Karachi and handles garments originating from Pakistan and moving to Spain.
Each year, Agility transports approximately 2,000 tons of jeans via air freight and another 25,000 cubic meters of jeans using ocean freight to the customer’s central warehouse in Spain where all global shipments are consolidated. At the heart of the consolidation center is an order management system that keeps track of all important supply chain information, including purchase orders, inventory levels, milestones and operational performance. An EDI link to the customer’s in-house IT system ensures full visibility of the supply chain to better manage seasonal cycles and address problems right up to the point of loading.
Consumer goods giant in Pakistan
Agility is one of Pakistan’s largest 3PL providers, offering state-of-the-art warehousing and distribution facilities in a country where they are not widely available. In Karachi, Agility provides 215,000 sq.ft. of warehousing space to a global producer of personal care products such as shampoo, conditioner and facial wash.
The customer counts on Agility to handle both finished, imported goods and products that it manufactures in Pakistan. Agility manages various warehousing activities. Agility stores raw material for the customer’s production plant; moves goods from the plant to a distribution center, then from the center to retail outlets in five cities; and receives and manages 21,000 pallet positions of finished goods.
Multi-nationals selling in Pakistan can find it a difficult place to operate: roads are poor and crowded; infrastructure is underdeveloped; and crime and sectarian violence flare up frequently. To help navigate that environment, Agility uses its strong on-the-ground knowledge and well-established local operations, along with a GPS-enabled fleet management system. Agility provides value-added services such as special packing for sales promotions, and product labeling. Its Karachi facility – equipped with advanced warehouse management systems and handling equipment – helped the customer to achieve economies of scale by consolidating its operations under one roof, improving vehicle utilization and boosting order fulfillment performance.
Luxury automotive manufacturer in India
A German luxury car manufacturer was expanding its business in India but had difficulty distributing its high value spare parts on a timely basis to meet demand across the vast country. Agility set up an 87,000 sq.ft. warehouse in Bhiwandi, a suburb of Mumbai, to serve as its national distribution center for car parts.
The majority of the warehouse space is demarcated as an excise area for taxable goods while the remaining space serves as a customs bonded warehouse for goods that are not yet subject to tax. The spare parts are imported from Germany via ocean freight and are meant for the automaker’s finished passenger cars in India. Agility receives and clears the shipments through customs and conducts a check to ensure they meet quality and quantity standards before binning them. Each month, the inventory management system handles more than 20,000 SKUs. When the automaker’s authorized Indian dealers place their orders – routine inventory replenishment, a rushed order, or ultra-urgent parts required for a broken down, roadside vehicle – Agility picks and packs the required items for distribution in any part of India in 24-72 hours. The agile distribution network enables the customer to stay on track in meeting its growth plan across India.
LARGEST DEEP-SEA PORT
Pakistan’s Gwadar Port is the largest deep-sea port in the world. Situated on the Arabian Sea, it is a vital access point for Pakistan and for landlocked Afghanistan and Central Asian countries. Gwadar is intended to be a fully developed regional hub and trans-shipment port. China Port Holdings took over management at Gwadar in 2013, and the Chinese government is financing much of current development.
For more information about the range of warehousing & distribution services offered by Agility click here