Supply Chain Management of Fmcg Companies

2362 words 10 pages
Supply Chain Management of FMCG industry

Group A2 Akshaya M Rajee-MBA10003 Eldho M Abraham –MBA10025 Lijo Jose-MBA10047 Ramya S-MBA10069 Sreeram C-MBA10093


INTRODUCTION A Supply Chain is a network of facilities and distribution options that performs the function of procurement of materials transformation of these materials into intermediate and finished products and the distribution of these finished products to customers. It is the process used by the companies to ensure that their supply chain is efficient and cost effective. It also basically a collection steps which a company follows to transform raw materials into finished products the five different stages are Plan Develop Make Deliver and Return Plan A plan or strategy
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Details are collected from stockists on a weekly basis. In case of primary distribution points, an incremental backup is sent to the central location when the Carry and Forward Agent (CFA) closes operations for the day. These are computed at night in a process called ‘cubing’. And when managers come into office in the morning, the information is ready for them. The integrated system allows each Area Manager to plan for the month's sales forecasts, stockists performance, and sales officers' performance.

SUPPLY CHAIN PERFORMANCE The supply chain performance of the three companies was analysed for the years 2009 and 2010. The following ratios were used as a tool for the performance evaluation: Number of inventory turns Total inventory in days Cash to cash cycle in days Raw materials inventory in days Work in process inventory in days Finished goods inventory in days

RATIOS Inventory turnover ratio (percentage) No. of inventory turns Total inventory in days Days of sales outstanding Days of payable outstanding Cash to cash cycle time (days) Raw material inventory in days Work In Process inventory in days Finished Goods inventory in days Number of inventory turns

Godrej 2010 2009 12.98 11.21 7.7 8.92 47.39 40.91 9.35 3.17 63.67 51.12 -6.93 -7.05 48.47 11.93 18.17 30.64 8.95 17.94



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