“Creatively utilising all channels to enhance the brand’s bottom line”

Post By : Karvi Rana
Post Date : January 22, 2022
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Established in 1992, Creative Newtech is bullish about evolving as an accomplished modern retail and e-commerce distribution specialist. In conversation with Logistics Insider, PURVI PATEL, WHOLE-TIME DIRECTOR, CREATIVE NEWTECH, talks about the company’s latest B2B initiatives, the secret of striking the right balance between demand and supply, meeting optimum customer satisfaction through collaboration, and a lot more.

The pandemic impacted businesses differently across the spectrum. What effect did the pandemic have on your operations? What changes did you adopt to stay resilient and emerge as a winner out of this unprecedented situation?

Because of the nationwide lockdown and subsequent interstate lockdowns, the pandemic had a significant impact, lasted nearly two years. We had a high inventory-to-sales ratio during the national lockdown since we couldn’t sell our stock because retail was closed at the time. In addition, maritime freight increased by 1500 %, while air freight increased by nearly double.

Simultaneously, the cost of domestic freight distribution has increased by 25%. As a result, supply-chain disruptions had a measurable influence on consumer pricing, which was aggravated by semiconductor shortages.

Work from home boosted the sale of laptops, desktop monitors, printers, and tablets, which were in high demand.

There were also severe shortages of thermometers, oximeters, and N95 masks, so we obtained special clearance to supply these products so that we could continue to serve our partners.

In addition, we decentralized our distribution centres and built and expanded them in Chennai, Kolkata, and Delhi. We’ve also begun storing just-in-time plus inventory to accommodate for supply chain disruptions and lockdowns.

The IT peripherals segment has extremely high skews and seasonality of demand. How does the company align its supply chain to strike the right balance between demand and supply while also keeping in mind the cost-to-serve?

We haven’t seen this type of scenario before. But with a decline in Covid cases, there has been a surge in the demand, whereas the production hasn’t stopped but is disturbed since the last Covid wave. This has happened due to a lack of raw material or workers or lockdowns. However, the demand is more and supply is a little less in the category of FMCG. Even manufacturers are producing only 65-70% of products, in comparison to 90% during pre-Covid times, which is a hurdle for retailers and distributors.

The IT peripherals segment has extremely high skews and seasonality of demand. How does the company align its supply chain to strike the right balance between demand and supply while also keeping in mind the cost-to-serve?

We use ERP software, which is a secure and reliable system that has been shown to deliver accurate data that allows us to make informed decisions. We know the sales patterns because we’ve been in this industry for over 30 years, and our distribution hubs ensure that our products are available at the proper moment and save our customers time. When there is a demand forecast problem, the balance is kept by organizing shipments by air and sea to ensure prompt fulfilment.


This is an abridged version of the original interview that was published in the January edition of the Logistics Insider magazine. To read the complete article, click here.

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