XYZ Health Care Pvt. Ltd., a leading manufacturer and distributor of orthopedic and mobility aids, partnered with AAJ SCM to manage its 3PL warehouse operations at Serampore, West Bengal. The engagement focused on building a scalable, process-driven warehousing and distribution model capable of handling high SKU complexity, strict delivery timelines, and pan-India B2B distribution requirements. Through structured process improvements, data-led planning, and operational discipline, the warehouse consistently achieved high service levels, near-perfect inventory accuracy, and improved dispatch performance despite rising volumes and complexity.
Client Background
Client Overview-
Client Name: XYZ Health Care Pvt. Ltd.
Industry: Orthopedic Solutions & Mobility Aids
Product Portfolio
- Orthopedic supports and braces
- Mixed SKUs with wide variation in size, packaging and handling requirements
Distribution Model
- Pan-India B2B distribution
- Time-bound deliveries with strict service-level agreements (SLAs)
Warehouse & Operations Overview
Warehouse Details-
Warehouse Location: Serampore, Hooghly, West Bengal
Warehouse Size: 50,000 sq. ft.
Storage System: Palletized storage
Average Monthly Dispatch: 300 orders
Scope of Operations
- Inbound receipt and quality checks
- Put-away and palletized storage
- Order picking and packing
- Dispatch planning and transporter coordination
Business Challenges
During the initial phase several operational and cost-related challenges were identified such as
Transportation Cost Escalation
- High freight costs due to multiple small and fragmented dispatches
- Limited shipment consolidation increased per-order logistics cost
Documentation Complexity
- Single customer orders generating multiple invoices and LRs
- Time gaps in invoice generation leading to multiple dispatch documents for the same order
Strict Delivery Time Windows
- Client-mandated delivery slots required precise dispatch sequencing
- Minor delays directly impacted SLA adherence
Inventory Accuracy Issues
- SKU-level mismatches due to inside-box quantity and product discrepancies
- Delays in reconciliation affected dispatch planning and fulfilment accuracy
Objectives of the Engagement
- Improve on-time dispatch and delivery performance
- Achieve and sustain high inventory accuracy
- Standardize warehouse processes for scalability and control
- Reduce operational inefficiencies and logistics costs
Operational Performance Analysis
- Â Inbound Operations Performance
Phase 1 – First 6 Months (Jan–Jun 2025)
- 22 inbound trucks handled with improved load consolidation
- Monthly truck movement reduced from five to three
- 2,495 SKUs managed including bulk and loose SKUs
- Monthly inbound volume ranged between 18,000 and 47,000 units
- Achieved 100% TAT consistently, establishing a strong inbound foundation
Phase 2 – Last 6 Months (Jul–Dec’25)
- Inbound trucks increased to 36 reflecting the business growth
- SKU count increased to 3,888 with higher product mix complexity
- Monthly volume peaked at 49,000 units in December
- Maintained 100% TAT despite higher volumes indicating scalable inbound capability
Key Insight: Improved inbound planning, space utilization, and manpower alignment enabled smooth handling of increased complexity without service degradation
Inventory Fulfilment Performance
Jan–Jun 2025:
- Fulfilment rate ranged between 99.42% and 99.91%
- Minor deviations caused by SKU mismatches and early-stage process stabilization
Jul–Dec 2025:
- Fulfilment rate improved to 99.92%–100%
- Achieved 100% fulfilment in December despite higher SKU and volume complexity
Key Insight: Strong reconciliation processes and tighter controls significantly improved inventory accuracy over time.
Picking & Packing Performance
Jan–Jun 2025:
- Orders ranged from 163 to 405 per month
- Dispatched quantities fluctuated between 16,000 and 43,000 units
- Variability highlighted challenges in manpower balancing during peak months
Jul–Dec 2025:
- Order volumes stabilized between 242 and 375 per month
- Dispatched quantities exceeded 45,000 units in December
- Improved task allocation and sequencing supported higher throughput
Key Insight: Structured workload distribution transformed picking and packing into a scalable and repeatable process.
Dispatch Performance
Jan–Jun 2025:
- TAT achievement ranged from 91.17% to 100%
- Early deviations due to documentation handling and transporter coordination
- Achieved 100% TAT in April and June
Jul–Dec 2025:
- TAT largely maintained above 97%
- Temporary dip during festive periods such as Durga Puja, Diwali and Chhath Puja
- Faster normalization and reduced out-of-TAT cases compared to initial phases
Key Insight- Improved dispatch scheduling and transporter coordination strengthened SLA reliability.
Solutions Implemented
Dispatch & Transportation Optimization
- Shipment consolidation planning
- Optimized vehicle utilization
- Dispatch schedules aligned with client delivery slots
Invoice & Documentation Control
- Standardized invoice and LR generation process
- Grouping of orders to minimize document duplication
- Pre-dispatch verification checkpoints
Warehouse Layout & Space Optimization
- Pallet realignment based on SKU velocity
- Improved aisle management
- Reduced unnecessary pallet reshuffling
Manpower Optimization
- Shift-wise manpower planning linked to dispatch volumes
- Clear task ownership across inbound, picking, packing and dispatch
- Reduced idle time and handling delays
Inventory Accuracy Improvement
- Strict inward and outward reconciliation
- Immediate post-inbound cross-checks
- Enhanced pallet/bin identification
- Regular cycle counting
Results & Business Impact
- Improved adherence to client-defined delivery time slots
- Reduced documentation errors
- Better space utilization and smoother material flow
- Near-perfect inventory accuracy supporting faster closures
- Enhanced client confidence and long-term operational stability
Key Learnings
- End-to-end coordination between warehouse, transport and documentation is critical in 3PL operations
- Continuous layout optimization is essential even in palletized warehouses
- Inventory accuracy is non-negotiable in healthcare logistics
- SOP-driven operations reduce dependency on individuals and improve consistency
Conclusion
The XYZ Health Care 3PL warehouse at Serampore demonstrates how structured processes, data-driven decision-making and continuous improvement can deliver high service levels in a complex healthcare logistics environment. The operation successfully scaled with business growth while maintaining strong SLA performance making it a robust and replicable 3PL warehousing model.
AAJ Supply Chain Management
