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Tyre Distribution Model GCC tyre distributors are opting for operational digitization—the way forward
Tyre distributors opting for operational digitization – the way forward
There is no stopping supply chain digitization – it is indispensable
Most companies know the need to digitize their supply chain to remain competitive. However, achieving digitalization is challenging, asserts Dr. Muddassir Ahmed, Founder & CEO, SCMDOJO, Dubai, UAE.
The importance of Supply Chain Digitalization cannot be denied. It brings reliability, product and information traceability, automation (automatic synchronization equals information flows and physical flows, for example and collection of forecast information for senior management in particular.
Furthermore, sales forecasting and inventory management use our sales forecasting software. The advantages of digitalization are many. Ultimately, supply chains that go digital can reduce their operating costs by 20% on average.
So how can you define Digital Supply Chain?
Gulcin Buyukozkan, Department of Industrial Engineering, Galatasaray University, Istanbul, Turkey, and Fethullah Gocer, Kahramanmaras Sutcu Imam University, Kahramanmaras, Turkey, have defined the Digital Supply Chain as follows: “Smart, value-driven, efficient process to generate new forms of revenue and business value for organizations and to
Extended Enterprise
Digital Order Management System
§ MVP: Start with a basic version of B2B SaaS with Magento at § Launch Order Management system for selected dealers of Tyre Distributor to manage: o Oder collection to shipment data o Dealer access for B2B Portal to see relevant data/products o Drive internal operational efficiency
Week 1 Week 2 Week 6
Digital Logistics by Logibee.ai
• Technology Platform to manage end-to-end Tyre
DistributorLogistics
o Route Optimization – To Safe Time o Real Time Visibility – For Better Control of Delivery o Capacity Consolidation – For Cost Optimization o E Proof of Deliveries (EPOD) – To Get Paid on Time o Smart ETA Engine - Display accurate delivery ETAs
Week 10
ERP & Demand Planning Integration
§ Integrate between Distributor ERP and Magento § Resolve Business Inefficiency and data accuracy problems both
for Distributor and for Partners
o Demand Forecasting & Supply Planning o Performance Metrics Driven Operational Structure o Documentation /SOPs o Data History
Distribution and Transportation Assessment & Improvement
Full integration of WMS, Tyre Distributor ERP and Logibee.ai
o Logistics Subject Matter Expert act as strategic expertise o Provide support for growth o Customer service excellence to give a competitive advantage o Drive Logistics Cost Efficiency - Productivity/Cost o Drive Innovation and responsiveness o Ease of doing business o Analysis & optimization of transportation partners o Manage Quality, Safety and Accuracy of Data
Integrated Enterprise
CHALLENGE
+400 Partners n+1 Business Cycle Order collection and shipment data reporting is out-of-date and unorganized:
§ Manual and high risk for human error § Inefficiency and timely availability of information both for Distributor and for
Partners; § Lack of visibility of supply chain information between partner
Distributor
+4300 xlsx/pdf files shared via e-mails Dealers
Order CollectionCredit information
Shipment Docs
Invoice SOLUTION
Digital Order Management System to manage from order collection to shipment tracking for Partners Distributor Dealers
Supply Chain & Sales
Order Collection Shipment & Documents Account Status Pricing & Promotion
MVP: Start with Minimum features, and develop further based on customer feedback findings PHASE I
www. app.distributor.com
Launch and rollout MVP with selected customers No integration with ERP or any other system.
Key Features:
• Order Collection • Shipment Information • Shipping Documentation
Availability • Order & Shipment Data History &
Reporting • Notification
Training of the internal core teams for further deployment PHASE 2
www. app.distributor.com
Extended dealer network roll out
Integration with ERP and /or WMS System of Distributor
2022 – Pilot 2023 – integration with ERP and digital logistics logibee.ai the platform for end-to-end visibility 2023 – Deployment of advanced features like promotions, campaigns, bonuses, contract targets, warranty, claims management
Current Customer Journey & Interaction
Order Collection
Shipment & Documents
Account Status
Pricing & Promotion
Customer Sales Team Tyre Distributor 1 Day 1 Day office Sales Team Customer
1 Day 1 Day
Sales Team Tyre Distributor office Sales Team Customer
1 Day 3 Days 1 Day
Customer Sales Team 1 Day 1 Day Tyre Distributor office 2 Days
Tyre Distributor office 1 Day Sales Team Customer 1 Day Sales Team Customer 1 Day
Tyre Distributor PLATFORM FOR ORDER MANAGEMENT AND DATA SHARING
# Elements Current State B2B State Phase
1 Customer Interaction 2 Order Collection 3 Order Confirmation 4 Stock Visibility 5 Price Visibility 6 Credit Status Visibility 7 Shipment confirmation 8 Shipping Documents 9 Notifications/Alerts 10 Promotion/Offers Visibility 11 Bonus/Contracts Targets 12 Customer information updates 13 Announcements 14 Dashboard 15 New Customer Creation 16 Route Optimization – To Safe Time 17 Real Time Visibility – For Better Control of Delivery 18 Capacity Consolidation – For Cost Optimization 19 E-Proof of Deliveries (EPOD) – To Get Paid on Time 20 Smart ETA Engine - Display accurate delivery ETAs Through sales team Through sales team Through sales team No visibility Manual Manual Manual Manual Do not happen Through sales team Through sales team Through sales team Manual Non existent Manual Do not happen Do not happen Do not happen Do not happen Do not happen B2B Portal & sales team B2B Portal B2B Portal B2B Portal B2B Portal B2B Portal B2B Portal B2B Portal Push notifications B2B Portal B2B Portal Customers can updated certain fields Push notifications B2B Dashboard (Order History and Documents) B2B B2B Portal & App B2B Portal & App B2B Portal & App B2B Portal & App B2B Portal & App
1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2
The tyre distributors, serving more than 300 dealers have adopted a ‘Minimum Viable Product Approach’ to incorporate customer feedback. With this solution, they have achieved 30% reduction in cost, improvement in communication with customer and 5% increase in sales.
Customer Journey & Interaction B2B State
www.app.distributor.com
Customer Order Collection
Shipment & Documents
Account Status
Pricing & Promotion
Distributor leverage new approaches with novel technological and analytical methods.”
In this article, I have presented a brief case study on how SCMDOJO has helped tyre distributors in the Middle East to achieve operational excellence, achieving the above digitalization benefits.
Customer Supply Chain Challenge
The tyre distributors, serving more than 300 dealers, faced problems mentioned below
Current Customer Journey Solutions Implementation
Rather than deploying a ‘mass scale’ solution, we have adopted a ‘Minimum Viable Product Approach’ to incorporate customer feedback.
Solution Benefits & Results
With this solution, distributor has achieved 30% reduction in cost, improvement in communication with customer and 5% increase in sales.
New FedEx research shows e-Commerce opportunities set to grow for SMEs
The FedEx survey focused on key markets across Asia
The latest e-Commerce trends from research commissioned by FedEx Express, a subsidiary of FedEx Corp. in some of the most prominent markets in its Asia Pacific, Middle East, and Africa (AMEA) region shows that both small and medium sized enterprises (SMEs) and consumers agree that there’s room for further growth in the already booming e-Commerce sector.
Arecent e-Commerce trends related research and survey commissioned by FedEx Express on the theme ‘What’s Next in E-Commerce’ polled SMEs and consumers in 11 AMEA markets in July 2022 to explore the continuing evolution of e-Commerce in the region and identify the trends that could fuel their future growth.
The survey reveals that consumers are looking for innovations in personalization, shoppertainment, and payment options that enhance their experience and at the same time, make it easier to discover new brands and make purchasing convenient.
“The pandemic has accelerated our lifestyles to a pivot point where shopping online has been normalized across all demographics. E-commerce is set to take a growing proportion of total consumer spend,” observed Kawal Preet, President, Asia Pacific, Middle East, and Africa (AMEA), FedEx Express.
E-Commerce sector matures with further growth ahead
Asia Pacific which includes the world’s biggest e-Commerce markets like India, Mainland China, Japan, and Korea, will witness revenue from e-Commerce sales to reach US$ 2.09trillion this year, as 57% of the region’s population shops online.
In the Middle East and North Africa (MENA) region, e-Commerce is catching up fast with these global powerhouses, where the sector is growing slightly ahead of the global average at 25% and is expected to reach a value of US$ 8bn by 2025.
With the rapid growth of the e-Commerce sector within the MENA region, and Dubai being placed at the centre of trade relations between the East and the West, earlier this year, FedEx Express broke ground on a new regional air and ground hub near Al Maktoum International Airport (DWC) at Dubai South’s Logistics District, a press communique indicated.
With a completion earmarked for 2023, the new FedEx Express regional hub will support improved efficiencies across both its regional and global networks and expand the company’s commercial and operational footprint to support the growth of e-Commerce and trade, a press statement concluded.
