Empowering CPOs with Moglix: Transforming Packaging Procurement for India’s Second Largest Paint Company

Moglix has emerged as a game-changer for CPOs in the paints and coatings industry, especially through its transformative collaboration with India’s second-largest paint manufacturer.  

Let’s dive deeper and see how they achieved exceptional results. 

Procurement Problem Statement of The Paints Company 

India’s packaging supply chain has traditionally been fragmented, especially in the paints and coatings sector.  

Packaging vendors were confined to a few towns, and the procurement process was frequently exhausting, inefficient, and subject to delays.  

Additionally, to meet the rising demand for diverse SKUs, organizations frequently onboarded new suppliers on an ad hoc basis, further complicating the procurement process. 

These complexities began to have an impact not only on overall cost but also on product delivery delays at India’s second-largest paint firm. 

The company faced the following issues:  

• A fragmented supply chain and insufficient supplier coverage. 

• Ad hoc supplier onboarding, resulting in variable quality and delivery. 

• Ineffective logistics with several 3PL partners leads to slow delivery times and expensive operational costs. 

For the CPO, the responsibility to eliminate these difficulties, maintain high-quality packaging materials, and ensure swift delivery across India was crucial. 

The Moglix Solution: Optimizing Packaging Procurement 

Moglix partnered with India’s second-largest paint company to revolutionize packaging procurement across India. Here’s how we delivered impactful solutions: 

1. Consolidated Packaging Supply Chain Across India 

By utilizing superior technological capabilities, Moglix implemented a single-window purchase system. 

This approach enabled seamless procurement from over 10 locations across India, ensuring consistent quality. 

Curious about the result? A consolidated and streamlined procurement process eliminated unnecessary and redundant steps, which in turn reduced dispensable complications. 

2. Strategic Sourcing and Supplier Relationship Management 

Moglix adopted a strategic sourcing approach to enhance supplier reliability and cost efficiency. 

Reducing vendor dependence allowed the company to focus on long-term goals, leading to cost savings, improved quality, and superior service. 

This method resulted in a 3% cost savings for packaging materials. 

3. Packaging Innovation & Sustainability 

Our goal was not limited to cost reductions. Moglix also leveraged packaging sustainability initiatives by using eco-friendly materials and reducing packaging waste.  

This enabled the paint industry to achieve its sustainability goals while also improving their packaging. 

4. Supply Chain Optimization and Logistics Efficiency 

Previously, the logistics cycle was tedious and time-consuming due to the involvement of several 3PLs.  

Moglix addressed this by consolidating the number of logistics partners into a single 3PL supplier, resulting in substantial time savings. The results were amazing. 

• The process time was shortened to 48 hours. 

• Cycle time was shortened to three days. 

• The turnaround time (TAT) was reduced from 8 to 6 days. 

This change not only enhanced delivery speed but also significantly improved OTIF performance, which rose to an amazing 98% across India. 

The Impact of Moglix’s Solutions 

The strategic partnership between Moglix and India’s second-largest paint company has yielded actual and tangible results, allowing CPOs to make more informed and data-driven decision-making. 

Moglix’s digital procurement and logistics operations resulted in a 3% reduction in packaging material costs.  

By consolidating logistics under a single 3PL provider, the company achieved a 20% reduction in processing time. 

The results have been highly credible that the company now has a streamlined packaging supply chain, all while maintaining high quality and environmental standards. 

Conclusion 

In conclusion, for CPOs in the Fast-Moving Consumer Durables industry, the packaging procurement process can be complex and costly.  

Businesses can unlock cost savings and boost productivity by adopting efficient packaging procurement strategies that optimize logistics and supply chain performance. 

If you are a CPO looking to revolutionize your packaging supply chain and optimize your procurement processes, Moglix is just a click away, access the full case study.  

Get in touch today to streamline your packaging procurement and enhance supply chain efficiency.