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How we prevented the possibility of vehicle shortage to affect the logistics of a FMCG company

There were various protests following the blockage of roads, but there was still no action by the administration on the same and the roads were still blocked. The company didn’t realise this was a major incident that could have impacted their logistics and led to a loss in revenue.

How we prevented the possibility of vehicle shortage to affect the logistics of a FMCG company

Situational Analysis

A big FMCG outsources its logistics functions to a third party. Due to a major road blockage, various trucks en route to the Kashmri highway were blocked by the traffic officials, citing that the shooting stones damaged the roads ahead. 

There were various protests following the blockage of roads, but there was still no action by the administration on the same and the roads were still blocked. The company didn’t realise this was a major incident that could have impacted their logistics and led to a loss in revenue. 

They have asked Lythouse to monitor external risks for them and give relevant alerts. We were tracking and analysing all the information around the incident, and this is how we helped.

How we Helped

We were monitoring and analysing all the incidents around companies assets and stakeholders. We found out that their stakeholders are directly impacted by this incident. The company that they outsourced their logistics function to, had 50% of it’s trucks stuck in Kashmir. Soon,  As a result of this, they wouldn’t be able to deliver the goods on time. There would be an increase in the cost of transportation aswell.  Less availability of vehicles for transportation would induce other companies to look for transportation as well and this sudden increase in demand will increase the prices and lead to less transportation vehicles. 

We alerted the company that their stakeholders are going to get affected in a major way. The alert contained the quantified impact of the incident along with loactions affected. 

They decided to look for alternate companies to outsource their logistics function following our suggestion and started working on the risk mitigation plan.

Results

They soon found another logistic company to carry the transportation function for the period. 

This helped them deliver the goods on time. And hiring the company beforehand on contract basis helped them avoid the loss due to increase in prices. 

Want to see us in action?

Book demo now

Situational Analysis

A big FMCG outsources its logistics functions to a third party. Due to a major road blockage, various trucks en route to the Kashmri highway were blocked by the traffic officials, citing that the shooting stones damaged the roads ahead. 

There were various protests following the blockage of roads, but there was still no action by the administration on the same and the roads were still blocked. The company didn’t realise this was a major incident that could have impacted their logistics and led to a loss in revenue. 

They have asked Lythouse to monitor external risks for them and give relevant alerts. We were tracking and analysing all the information around the incident, and this is how we helped.

How we Helped

We were monitoring and analysing all the incidents around companies assets and stakeholders. We found out that their stakeholders are directly impacted by this incident. The company that they outsourced their logistics function to, had 50% of it’s trucks stuck in Kashmir. Soon,  As a result of this, they wouldn’t be able to deliver the goods on time. There would be an increase in the cost of transportation aswell.  Less availability of vehicles for transportation would induce other companies to look for transportation as well and this sudden increase in demand will increase the prices and lead to less transportation vehicles. 

We alerted the company that their stakeholders are going to get affected in a major way. The alert contained the quantified impact of the incident along with loactions affected. 

They decided to look for alternate companies to outsource their logistics function following our suggestion and started working on the risk mitigation plan.

Results

They soon found another logistic company to carry the transportation function for the period. 

This helped them deliver the goods on time. And hiring the company beforehand on contract basis helped them avoid the loss due to increase in prices. 

Want to see us in action?

Book demo now