Case Study

Expanding the National Commodity Distribution Network

Background

TERRA91, a commodity trading firm in India, has expanded globally by developing a robust
distribution network. With offices in eight key states and a presence in twelve, we have become
a significant player in distributing metals, petrochemicals, and industrial chemicals.

Challenge

To efficiently manage the logistics and distribution of over 20 commodities, including Zinc,
Aluminium, Copper, and various petrochemicals, across a vast geographical area, TERRA91
needed to establish a seamless supply chain. The challenge was to ensure timely deliveries and
manage inventory in 25+ warehouses nationally.

Solution

TERRA91 implemented a multi-faceted approach to overcome these challenges:

  1. Network Expansion: TERRA91 expanded its operations by establishing offices in
    important locations such as Bangalore, Hyderabad, and Mumbai. Additionally, we
    extended our distribution network to 12 states, including Kolkata, Raipur, and Lucknow.
  2. Warehouse Optimization: We optimized our warehouse operations, ensuring that the
    25+ facilities were picked to reduce lead times and costs.
  3. Technology Integration: TERRA91 integrated advanced logistics and inventory
    management systems to monitor stock levels, streamline distribution processes, and
    ensure timely deliveries.

Impact:

  • Nationwide Reach : TERRA91 successfully distributed materials to 27 states and 6
    Union Territories in FY 23-24, leaving only Mizoram, Ladakh, and Lakshadweep as the
    untapped regions.
  • Satisfaction : The efficient distribution network led to onboarding ~1000 new
    customers in FY 23-24, bringing the total number of unique customers to 1600+.
  • Growth : The expansion and optimization of the distribution network
    contributed to TERRA91’s trading volumes, with 4 lac MT of ferrous materials, 1.1 lac
    MT of base metals, and 2.2 lac MT of petrochemicals traded in FY 23-24.