Business Process Review and Re-engineering for an FMCG Hyperlocal Distribution Business
A pan-India tech logistics start-up needed help to re-engineer their processes with greater clarity on unit economics, profitability, and cash flow,
Background
45,000+ active customers
17 Pan-India warehouses
10,000+ SKUs
Operations across 8 major cities
Rs. 12 Cr Monthly Run Rate (‘MRR’)
Deep partnerships with all major FMCG brands
40+ members internal tech team
Ask
Ensure availability of real-time financial information and timely reporting to support efficient decision making as against existing practices that were based on multiple estimates and assumptions
Required visibility on unit economics, profitability and cash flow matrix;
Build out the finance team and establish internal controls that supports growth
Seamlessly implement process re-engineering for scalability
Raadhi Impact
Real-time visibility into granular level unit economics, monitoring of working capital and process improvements that enabled efficient decision making and powered business scaling.
Execution
Conducted process mapping for O2C and P2P processes, identified gaps and used technology for seamless data flow between four systems
Implemented Robotic Process Automation (‘RPA’) to eliminate all manual interventions and errors by designing and exchanging data between the multiple tech systems.
Streamlined processes related to adherence to regulatory compliance and adapting to ever-changing regulations.
Designed finance organisation hierarchy and roles; recruited finance team and ensured support with an interim team while they transitioned to permanent hires.
Impact
Data integrity, speed and decision quality :
Use of ERP as ‘the Only Source of Truth’ for all reporting & analysis and decision making
Data integrity and real time information across tech systems;
Unit economics for 10,000+ SKUs, 45,000 + customers to assess the business performance
Scalable processes, profitability improvements
Updated processes that are effectively supporting the current 5x revenue growth
Empowered and confident teams who have bought into the concept of reliance on tech and processes
Increase in revenue due to better fill rates
Recovery for short received, damaged & expired products from FMCG brands leading to EBIDTA improvement
Procurement practices properly linked to re-order levels leading to optimisation of warehouse space, lower inventory holding, reduction in losses, etc. improving EBIDTA