Operations & Supply Chain · Logistics / E-commerce

Last-Mile Logistics Optimisation, 22% Cost Reduction

Client / E-commerce fulfilment companyLocation / Pune≤24 hrs to shortlist
The Challenge

This reflects the type of challenge our consultants are built to solve, drawn from real industry experience. The cost-per-delivery had crept to ₹68 against a ₹55 target. Every month the operations head would present the number, the CFO would ask why, and the honest answer was a mix of things that were true but not actionable: traffic, failed deliveries, re-attempt loops. What nobody was tracking, until we mapped it, was that 14% of deliveries were failing on the first attempt, each generating a ₹29 re-attempt cost that nobody had named or owned.

The Approach

Three weeks of diagnostic work across five delivery zones, focused not on confirming costs were high but on tracing exactly where each overage rupee came from. Route density was the main driver: too few drops per kilometre on high-cost zones. Route clustering was applied. A pre-delivery WhatsApp confirmation was built, simple, not sophisticated, that cut the category of failed deliveries that should never have failed: wrong address, recipient absent, gate closed during delivery window. Micro-warehousing was piloted in two dense postcodes.

The Outcome

Cost-per-delivery fell from ₹68 to ₹53 within four months, past the ₹55 target. Failed deliveries dropped from 14% to 6.8%. Delivery time improved by 1.4 days. The operations head said the WhatsApp confirmation was the change that surprised him most: it turned out a significant proportion of failed deliveries were avoidable, and no one had bothered to avoid them.

22% cost-per-delivery reduction | Failed deliveries 14% → 6.8% | Delivery time -1.4 days
₹68 → ₹53 (-22%)
Cost per Delivery
14% → 6.8%
Failed Deliveries
-1.4 days
Avg Delivery Time
Client
E-commerce fulfilment company
Sector
Logistics / E-commerce
Location
Pune
Domain
Operations & Supply Chain
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