DIF picks and pack profits in Malaysia with logistics software

Customer Story

Niche player DIF, a Malaysian logistics firm, turns inventory holding costs into profitable sales for international clients using IBS logistics software.

DIF’s three founders were school friends as early as 1961. Little did these boys know that they would become successful business partners in the pick-and-pack logistics industry—more than 40 years later.

Managing director Muraledharan Pillai recalls why, at the end of 1999, they set up business. “We decided to run a third-party logistics company in Malaysia because we saw a need for it,” he says, adding that companies were running high warehousing costs and looking for better storage and logistics cost alternatives. “Our company offers a service that stores their inventories, processes their orders and distributes their products. Now, the companies can concentrate on their core competencies instead.”

Loose-item picking

In DIF’s large 5,000-square-metre, purposely built warehouse, 20 workers using IBS logistics software, pick through 60,000 stock-keeping units a day. The variety of items such as luggage, chocolates, herbs, make-up and baby food products are picked, packed and pushed out as soon as possible. As much as 250 orders per day can be processed.

“Because we are geared towards order processing at retail level, which translates into our staff individually picking loose items such as color-coded lipsticks to carton quantities of Black and Decker do-it-yourself kits, we knew we needed a good supply chain management solution from the start,” says Pillai. “Since I previously had good experience with IBS, I knew I wanted their logistics software installed from the very beginning.”

Running with IBS distribution software and warehouse management system, DIF was intent on choosing the right logistics system. “We are a small company in terms of capitalisation of costs, but considered medium in terms of warehousing,” says Pillai. “Our customers rely on us to process their orders quickly, raise the necessary documentation, arrange transportation and monitor it until it arrives at the destination. In Malaysia, an area with a scattered population of 25 million, we knew we required a good logistics system, and we get it from IBS.”

Temperature controlled rooms

DIF caters to its customers by offering customized rooms for particular products in their warehouse. Cosmetics companies, such as Clarins, have their own temperature-controlled room with a dedicated staff for its order picking. Pillai says that loose-item order picking also requires software continuity. The staff requires a good logistics system to help get the job done.

“We believe that managing resources is key to profitability. Since the IBS logistics solution was installed, there has been no down time and we have increased our productivity by 25 percent,” Pillai says. He describes the supply chain software system by making a comparison. “I think of the IBS supply chain system as a Volvo car. It is a safe, tough, dependable workhorse, and engineered to last.”

Expansion and scalability

DIF plans to expand its warehouse and operations, and will be using the IBS platform to drive this new area further. “Having scalability is a strong advantage. There is no contest as to which logistics software we will be expanding with,” says Pillai.

The company is located just outside Kuala Lumpur, and deliveries are made within 24 hours to the main center. Pillai says his company’s business model sums up DIF, which stands for Doing It Faster and Delivering It Further: “We bring products and end users together efficiently, quickly and economically in the fastest most efficient matter.”

Text: Joanie Rafidi, Photo: Velu Chanthiran

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