CRACK THE CASE 6.

0
ABC company was founded in 2018 with the purpose of producing and dispensing Ayurvedic medicines.
Currently, the company is headquartered in Delhi NCR. After Covid-19 hit the industry, the Company
entered into the business of the Personal Care Category to widen its portfolio to grab more opportunities.
Now, the company is offering a range of products Health Supplements, OTC & Ayurvedic Medicine,
Personal Care, Oral Care, Digestive, Food, and Home Care. The Healthcare Division is offering a huge
range of products to treat different types of ailments and body conditions from cold to chronic conditions.

With evolving customer preferences Health Supplements on demand are becoming a critical part of
customer requirements in many states of the country. ABC Company had shut down its operations for 3
months due to COVID. After which the company resumed its operations and it aims to deliver 5,000 orders
per day, totaling 2 tonnes to the following states as per the required Demand.

State Demand in Kg State Demand in Kg

within Delhi & 360 Maharashtra 100

NCR

Haryana 200 Goa 50

Uttar Pradesh 200 Gujarat 75

Rajasthan 75 Jammu & Kashmir 50

Punjab 90 Karnataka 100

Chandigarh 100 Pondicherry 35

Uttarakhand 50 Tamil Nadu 90

Himachal 50 Andhra Pradesh 80

Pradesh

Bihar 35 Guwahati 25
 Jharkhand 25 North East 45

Orissa 40 Kerala 50

West Bengal 75 Total 2000kg

Since as a Startup, ABC Company is new to multiple product lines and hence the company is
approaching warehousing and logistics service provider, XYZ Warehousing.

XYZ Warehousing provides a one-stop complete 3PL solution in Delhi NCR. It’s operated by a highly
professional committed team from 3PL background having renowned experience in logistics and
warehousing verticals from more than 12 years. Providing excellent service is the only motto of a
company. In Delhi, they are managing more than 30+ clients with huge inventory cost which is more
than 5 Cr.

They do complete order fulfillment, warehouse storage, inventory management, order dispatches,
RTO, and other operations as well. They also handle inventory and operations of sectors ranging
from FMCG, E-commerce, Retail, Consumer Goods, and technology.
 XYZ WAREHOUSING - LOGISTICS AND SHIPPING RATES ( EX - DELHI WAREHOUSE )

Air Mode

Weight
North East,
Delhi & Metro Rest
Kerala
NCR Cities of
Jammu &
India
Kashmir

0 - 500g( in INR ) 40 60 75 90
Express Mode
additional up to 30 35 35 40
500g ( in INR )

Transit Time (in 1 to 2 2 to 4 3 to 6 4 to 9

Days)

North East,
Weight Delhi & Metro Rest
Kerala
NCR Cities of
Jammu &
(within India
Kashmir
City)

0 - 500 g 70 105 135 160

Normal mode

additional up to 35 40 40 45
500 g

Transit Time (in 3 to 4 5 to 7 8 to 10 11 to 14

Days)

ADDITIONAL TERMS AND CONDITIONS

Fuel Surcharge 5%

RTO ( Return To Origin ) Charges same as forwarding shipping charges

COD ( Cash on Delivery Charges ) Rs 50 or 1.5% of COD Value, whichever is higher

 Offline Delivery Area ( ODA ) Minimum 1100 or Rs 30 per kg whichever is higher

Address Correction Charges Rs 60 per Consignment

Insurance ( Optional ) 1.5 % of the invoice value

In the unforeseen event of any damage or loss, XYZ

warehousing will issue a certificate of fact to enable customers
Claim Procedure (if insurance
to claim the loss from their insurers, for all claims. No deduction
not taken through XYZ
in freight bill will be accepted on part of
warehousing)
damages/shortages/pilferage

Chargeable Weight actual weight vs volumetric weight - whichever is higher

express volumetric divisor 5000

GST as per government regulations

Surface Mode

PICKUP POINT DELIVERY POINT

within Delhi & Bihar Jammu & Kashmir Guwahati

NCR

Haryana Jharkhand Karnataka North East

Uttar Pradesh Orissa Pondicherry Kerala

Delhi Warehouse
Rajasthan West Bengal Tamil Nadu

Punjab Maharashtra Andhra Pradesh

Chandigarh Goa

Uttarakhand Gujarat

Himachal Pradesh Daman & Diu

Dadra & Nagar

Haveli
per kg ( in INR ) 10 13 15 17

Transit Time ( in 1 to 4 2 to 5 4 to 7 5 to 8
days )

ADDITIONAL TERMS AND CONDITIONS

Fuel Surcharge 0%

Docket Charges Rs 25/-

Freight on Value Not Applicable

(FOV)

Minimum 15 kg ( volumetric or actual weight - whichever is higher )

Chargeable Weight

Insurance (optional) 1.5 % of the invoice value

Claim
In the unforeseen event of any damage or loss, XYZ warehousing will
Procedure (if
issue a certificate of fact to enable customers to claim the loss from
insurance not
their insurers for all claims. No deduction in freight bill will be accepted
taken through
on the part of damages/shortages/pilferage
XYZ
warehousing)

GST as per government regulations

Note: For the Same Day delivery within Delhi - Minimum Chargeable Weight will be 50 kgs and for NCR -
80 kgs. The additional delivery point will be charged @ Rs 200 per point
Key Deliverables for Submission Round:

ABC Company is looking for a comprehensive supply chain solution on ideas or initiatives
which answers the following questions,

● The lowest possible cost of the supply chain.

● Create Product design, Process for the Supply Chain Decision
● Customers from Karnataka, Pondicherry, Maharashtra, and Uttar Pradesh are
looking for faster delivery. In that case, how will the Supply Chain Decision look
like?