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Case Studies > Leading Online Pharmacy Chain Reduces Delivery Tat by 18% Using A Unified Delivery Management Solution

Leading Online Pharmacy Chain Reduces Delivery Tat by 18% Using A Unified Delivery Management Solution

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Functional Applications - Fleet Management Systems (FMS)
  • Functional Applications - Remote Monitoring & Control Systems
Applicable Industries
  • Healthcare & Hospitals
  • Retail
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Fleet Management
  • Predictive Maintenance
  • Real-Time Location System (RTLS)
Services
  • Software Design & Engineering Services
  • System Integration
The Challenge
To keep up with evolving end customer demands, our partner wanted to deliver orders using non-conventional and aggressive SLAs, such as executing fulfillment operations in 2 and 6 hours. But owing to the absence of a single robust application to manage on-demand, planned and 3PL-based deliveries and lack of automation capabilities, the online pharmacy store could not generate desired outcomes. Here's a detailed list of the key challenges they faced: Poor visibility of order movement and lack of end customer transparency, lack of capabilities to deliver on aggressive SLAs, surge in cases of deliveries being assigned to non-cost efficient fleet, and manual driver allocation and payment processes.
About The Customer
Our customer is a leading online pharmacy store. It's India's third-largest retail pharmacy and wellness products chain in terms of revenue. Operating a large omnichannel and hyperlocal retail network of 24x7 stores, the brand focuses on providing their customers with an assortment of pharmaceutical, nutraceutical, lifestyle and wellness products. Its catalog boasts of over 90,000+ products, including curative and preventive medicines. It operates out of more than 265 stores sprawling across Maharashtra, Goa and Karnataka.
The Solution
Shipsy implemented an automation-powered single platform to manage on-demand deliveries and planned or next-day deliveries. The platform also manages both floating fleet and 3PL-powered fulfillment operations. It enables intelligent selection of delivery partners and ensures seamless driver management and KPI-based payouts. Shipsy's platform empowers the customer to leverage drivers to cater to delivery demands coming from multiple stores. Using serviceability APIs, the platform quickly determines whether a driver is present at a particular location or not. If present, is he immediately available for delivery or not? Based on this, the system sends out an ETA to the end customer. It also prioritizes drivers based on whether they are part of a floating fleet or are dedicated to a store. The latter gets priority to ensure faster and cost-efficient order fulfillment. Shipsy's platform now dynamically changes the ETA based on delivery progress made at each point in the delivery lifecycle. Fresh ETAs are pushed with every status update so that the end customers, instead of seeing a bucket of 2 or 6 hrs, view a tentative time stamp by which they can expect their orders.
Operational Impact
  • Post-Shipsy's implementation, our customer now seamlessly manages on-demand and planned deliveries using a single platform. This has significantly enhanced visibility of delivery operations, optimized costs, improved fleet utilization and ensured efficient driver payouts processes.
  • Equitable distribution of fleet strength across stores.
  • Analytics-based decision making and improved reporting.
Quantitative Benefit
  • Increase in order volume by 2x post Shipsy’s go-live.
  • Order volumes are poised to increase by 10K/day.
  • Reduction in average delivery time from 110 mins to 90 mins.

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