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Strategic Supply Chain Network Structure Analysis for an FMCG major
Title: Evaluate robustness of its supply chain to support aggressive future growth plans of the company
Business Scenario:
Company was primarily into 2 FMCG segments: Personal Care and Foods
For personal care segment the company operated through a network of owned/contracted manufacturing units, depots, distributors and retailers
For foods segment, the company operated through a network of contracted manufacturing units, depots, distributors and retailers
Company aimed to double its top-line in next 2 years
Objective was to evaluate changes required in the supply chain to support the growth plans and ensure servicing of markets at least landed cost.
Our Solution:
Initial activity involved understanding of company business strategy and supply chain objectives, baselining the current network and future state business scenario identification
Baselining the current network lead to identification of improvement opportunities in current operations
Future state scenarios to be evaluated included
Evaluation of feasibility of setting up new plants
Assessing capacity expansion scenarios in existing plants
Identify optimal plant-depot-market linkages
Assess impact of fiscal incentives and CST phase out
Evaluation of hub-spoke model based on future demands
Sizing and characteristics of Hubs
Future state demands upto 2013 were considered for the evaluation
Target was to arrive at 2 alternate possible network structures which would aim to service markets to meet future demand and
Last Updated On:7/4/2011 1:22:16 PM
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Services »Domains »Information Technology
Procurement Co-Sourcing & Management Services
Your business functions are designed and mandated to allocate resources (business bandwidth and capital) on core activities which directly fuel business growth. Your non core Sourcing & Procurement function takes a back-seat and ends up being a supporting activity to the business resulting in:
Cost leakages
Suboptimal price discovery
Lack of new vendors in business operations
Maverick buying
Contract non-adherence
Preferential vendor treatment
Poor vendor management practices
Inefficient & incomplete material catalogue and specifications
How do you transform your Sourcing & Procurement function from a non-core/supporting set of activities to a strategic business enabler that positively impact your bottom-line and delivers competitive advantage over your peers? How would you ensure that your Sourcing & Procurement activities guarantees the
following tangible results:
Year-on-year landed cost savings.
Be more responsive to the business’ needs.
Reduce total cost of ownership for MRO items.
Increase service levels from suppliers.
You need to squeeze inefficiencies out of your sourcing & procurement function. You need to make the entire procurement process lean, transparent, compliant and fast. You need to reduce landed cost of materials on a progressive basis. And you need sourcing experts who can manage your sourcing requirements on a commodity basis. Its not an one size fits all approach, nor a mechanical engineer sourcing all
Last Updated On:7/6/2011 3:14:40 PM
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