The efficiency of the supply chain is directly linked to finished goods inventory management and their distribution methods. Research methodology our analysis refers to the italian fmcg supply chain. Quantitative analysis of key performance indicators of. Exploring supply chain flexibility in a fmcg food supply. Total fmcg supply chain services our solutions are fully customisable to meet the challenges of manufacturers and distributors of diverse fmcg cargo. Companies with better supply chain system will perform well, whereas those with poorly managed supply. At the same time data analytics enables supply chain visibility and identifies potential. Search programs the world of big business and international industry will never become less complicated. Karuturi aravind, evaluating logistics distribution network designs of fmcg supply chain, international journal of management, 1110, 2020, pp 783790. Pdf a study of forecasting practices in supply chain. Jan 29, 2018 however, often players in the fmcg space find difficulty in incorporating innovative product design, manufacturing, and fulfillment within the existing supply chain. Could covid19 be the black swan event that finally forces many companies, and entire industries, to rethink and transform their global supply chain model. Our supply chain offering dhl supply chain offers a wide range of flexible, endtoend, specialized supply chain solutions for consumer goods manufacturers. Quantitative analysis of key performance indicators of green.
Supply chain challenges in fmcg and retail sector retail. The business world is that of supply chain management, which deals with every aspect of product development and distribution. Supply chain management involves optimizing industrial operations to. Learn how to manage and harness the dynamics and interaction.
The associated chambers of commerce and industry of india. Learn how to manage and harness the dynamics and interactions between firms and entities within a supply chain. This book is about the fast moving consumer goods fmcg supply chain and its management. Pdf supply chain performance attributes for the fast moving. Study on supply chain management of industries in fmcg sector in bangladesh. Abstract now a days, supply chain management plays an important role in business industry. Some of the global fastmovingconsumergoods fmcg companies that are regarded as leaders in sustainable supply chain management are coca cola, nestle, loreal, proctor and gamble, unilever and nike. In the fmcg sector the supply chain performance is a key factor. Companies are now looking at efficient supply chain management not only as a costeffective operation, but also as a strategic decision in beating the tough competition, both online and offline. Supply chain management is a conscious effort to run supply chains in the most efficient and effective way possible. They control, organize and manage the supply chain from production to consumption fernie, sparks, 2009, p.
Indian firms also have a presence across the entire value chain of the fmcg industry from supply of raw material to final processed and packaged goods, both in the personal care products and in the food processing sector. E ective and dynamic supply chains are particularly important in fast moving consumer goods. Optimizing the supply chain operations could, for example, allow a company to reduce the inventory while maintaining high. Aug 08, 2018 replenishment based supply chain and getting 3pls wms to support. Whats the difference between a safety stock and a reorder point. A study of supply chain of fmcg companies with particular. One of the problems is understand the location of lost inventory to identify where product leakage and waste takes place, and, if applicable, where deliveries go missing. Exploring supply chain flexibility in a fmcg food supply chain. The impact of retail ready packaging on fmcg supply chain. Presented by group 3 pvs murthy pg 126 balasubramanian r pg 8 rajiv ranjan singh pg 145 abhijeet sinha pg 149 sushant tare pg 154 supply chain challenges fmcg sector. Sep 30, 2019 fmcg industrys supply chain has gone through tremendous changes over the past 30 years.
This whitepaper presents a strong case for the usage of a supply chain management. A welldesigned, agile, responsive, and efficient supply chain is a clear competitive advantage for business today. Fmcg retailers opt to vertically integrate where possible, be it through buying a stake in a local packaging store or establishing a whollyowned manufacturing plant in close proximity to the local market. Supply chain management scm is the process of shepherding materials through the many phases of a companys opera. Distribution network, fmcg, consumer food products, fuzzy topsis method cite this article. Maintaining close coordination with contract manufacturing partners around product specifications, formulations, and pos packaging can make product launches easier for brands. Below, youll find a definition and brief explanation of this business concep. Crosschain collaboration in the fast moving consumer goods. Understanding the phenomenon of bullwhip effect in. Best practices in supply chain of fmcg industry by. The impact of retail ready packaging on fmcg supply chain members. Supply chain management is the process ofoordinating the different phases of moving materials through the production process.
Drawing on network theory and stakeholder theory, the study analyzed how these eight organizations experience flexibility across the supply chain. All skus must leave the supply chain before the endof their shelf life. The data covers eight organizations in a fastmoving consumer goods fmcg food supply chain, including suppliers, the main manufacturer, the logistics service provider, and retailers. The fmcg supply chains are analysed from the perspective of processes, components and typology. For instance, indian firm amuls product portfolio includes supply of milk as well as the supply of processed dairy. Why digital supply chain is crucial for the fmcg industry. Due to the increasingly competitive global market, companies with a global supply chain have to continuously optimize their supply chain operations.
An awardwinning team of journalists, designers, and videographers who tell brand stories through fast companys distinctive lens. It is a mature industry that often took the lead in new business development, comparable to the role of the automotive sector. You may have heard about the importance of good supply chain management scm, especially for a multinational firm. With the modern way grocery retail and its supply chain is set up, the smaller a store is, the harder it becomes to trade and maintain return on investment. To achieve this, consumer goods companies need global supply chains that are highly efficient, agile, and sustainable. Last mile fulfilment for smaller and frequent orders through multiple modes bikers, small vans etc. A new model of value creation for the fmcg industry mckinsey. In the marketingsales process of the fmcg value chain, analyses are. Crosschain collaboration in the fast moving consumer. Supply chain challenges for fmcg companies, consumer goods. Research paper rfid adoption in the fmcg supply chain. Sep 01, 2016 the unit of analysis is the supply chain, which equals the focal company plus suppliers, lsp and retailers as primary stakeholders.
Study on supply chain management of industries in fmcg sector in. Scope of the study the study considered the detailed analysis of the supply chain length issues for the fmcg companies in both. A scheme of the supply chain analysed is provided in figure 1. Pdf the indian fmcg sector is a lowmargin business where volume holds the key to success. In some cases, the costs associated with establishing an effectively functioning supply chain may outweigh the benefits on the sales side. This paper presents a comparative analysis of supply chain management scm practices of twentyfive select firms in india. Scribd is the worlds largest social reading and publishing site. Supply chain sustainability in fmcg the supply chain.
Gordon chibroski portland press herald getty images there are a growing number of software s. The inconvenience of convenience little and often paves the way for convenience growth. Alistair berg getty images a justintime supply chain is one that moves material just b. Proper supply chain management practice is important for fmcg industries of our country because. The fmcg industry is on a high growth in our country. Fast moving consumer goods analytics framework deloitte. Our exploratory study covers a wide spectrum of firms. Amid a resurgent indian growth story, the expectations held of indias supply chain ecosystems are no different. Pdf the application of lean in the fmcg industry alaa. Supply chain chal lenges in fmcg and retail sector free download as powerpoint presentation. The fast moving consumer goods fmcg are those consumables which are normally consumed by the consumers at a regular interval. Proconnect, as a 3pl, has successfully partnered with fmcg supply chain companies on all the above with an added focus on cost reduction. These comprise retail chains, logistic service providers, fast moving consumer goods fmcg.
To understand the relationship of the extent to which the phenomenon of bullwhip effect can be explained by electronicallyenabled supply chain management systems diffusion, optimal inventory positioning. Your good business practices dont mean that much if theyre undermined by the other businesses you work with. Study on supply chain management of industries in fmcg. The supply chain team is focused on achieving greater mission impact by engaging business partners, customers and suppliers to ensure acs staff members receive the best, most efficient products and services at the best terms at the right ti. The relationships between these organizations influence the functioning of the entire supply chain. Supply chain performance is the make or break for fmcg enterprises. Rural consumption growth has outpaced urban consumption with the increase in percentage in. Oct 05, 2018 this study demonstrates forecasting practices in supply chain management scm at various areas, particularly life science, retail chain, and fmcg. Specifically, a representative threeechelon supply chain is examined, composed of a manufacturers distribution centre dc, a distributors dc and a retailer department store of fmcg. The estimated average loss to the fmcg industry is. The industry also engaged in operations, supply chain, production and.
Maturity assessment of green supply chain management in. Amsterdam, 2017 fast moving consumer goods analytics framework point of view. Supply chain challenges consumers expect a vast array of products to be constantly available in local stores and online all at the right time, at the right price. Pdf the impact of rfid and epc network on the bullwhip. The challenges faced by fmcg supply chain users knowledge. The transportation costs between all facilities in the supply chain are known. Our solutions are fully customisable to meet the challenges of manufacturers and distributors of diverse fmcg cargo. Supply chain responsiveness, lean supply chain strategy, agile supply chain strategy, strategic supplier partnership, postponement, fast moving consumer goods industry, pt. These changes happened in both upstream and downstream supply chains. Maturity assessment of green supply chain management in the. Study on supply chain management of industries in fmcg sector. The fmcg industry is characterized by complex distribution network and intense competition forcing firms to constantly work on supply chain innovation.
But now its just as important to take into account market research, consumer research, resource and capacity planning, stock replenishment, and possible societal factors ranging from the economic to the social. The aim of this study is to find plausible inventory management of finished goods in the fastmoving consumer goods fmcg sector of. As a typical black swan event, covid19 took the world by complete surprise. Understanding the phenomenon of bullwhip effect in relation. Some of the prime activities of fmcg industry are selling, marketing, financing, purchasing, etc.
Request pdf exploring supply chain flexibility in a fmcg food supply chain empirical studies about supply chain flexibility have mainly focused on one. Technology leader saps erp operations solution has become the software backbone that contributes to companies efficiency in the supply chain. The application of lean principles in the fast moving consumer goods fmcg industry 11 issn. Supply chain management involves optimizing industrial operations to increase both speed and efficiency. The industry also engaged in operations, supply chain, production and general management. Historically, fmcg brands have focused on their supply and historical shipmentsales data. It is to run the exact sales promotions or selecting the best marketing campaign or grabbing the most affordable supply chain, the overall success depends on. The present paper traces the development and trends of supply chain management practices followed. A justintime supply chain moves material to a location at a required time, just before the material is needed in manufacturing.
Pdf a study of forecasting practices in supply chain management. There is no significance difference between the supply chain lengths of the fast moving products and the slow moving products. Supply chains of fmcg around the world have rapidly moved beyond the role of an enabling function. A study of finished goods inventory management of fmcg. An sku can only be transported from one echelon of the supply chain to the next. The fmcg sector is core to the wealth and wellbeing of the developed countries. To know it as a fact, the success of an fmcg company strongly relies upon two pivotal aspects. Challenges in fmcg supply chain proconnect supply chain. Each year, fmcg companies suffer significant product losses within their supply chain.
1452 344 304 1341 960 1273 8 1332 922 1663 1544 1022 193 1562 1037 929 807 1575 1082 38 1504 862 853