End to End supply Chain planning Best practices in FMCG

What do you call an-- Ethnic snacking business promoted by a man who is a school dropout.. Manufactures the snacks in a congested factory in the heart of a metropolis.. Using traditional manufacturing methods.. Manufactures mouthwatering Indian snacks and..

And.. Delivers them fresher than any of the competitors in the market?? World class?? ‘Pull’ system by default.

What is a ‘pull’ system? Sales cannot be predicted accurately Manufacturing based on actual sales and not on plan Other support functions work on the same basis

What did we do?? Created silos – Warehouses – Finished Goods, Raw and packing materials Worked out re-order levels for all three Re-order levels are based on sales plans And filled the warehouses only when the inventory touches reorder level. Result: Just 17 days inventory across the system and finished goods reach the market fresh compared to competition

The learning.. Simple yet profound Produce what is sold System works in silos yet seamlessly connected to the market

What do you call a business where Perishable product collected from remote villages, Taken to the nearest processing plant within few hours for processing Processed and taken to the consumer door step in an appropriate cold chain the next morning.. And perfected this process 45 years before in a country wherein the road infrastructure is considered substandard even today.. Perfect example of an end to end supply chain

IT – great supply chain efficiency enabler

An Agri commodity brand.. Integrated backwards to preserve quality Connects its vendors in the rural areas on line Makes them offer their produce online.. Helps the vendors to trace their deliveries, payments, quality issues n ‘c’ forms etc.. Credits payments to vendor accounts on the 2nd day of receipt – 15 - 20 days ahead of competition

And the brand.. Is an undisputed market leader and consistently profitable thanks to its robust supply chain support

In a nutshell

An efficient supply chain plan.. Business Efficiency – quality/speed/cost Real time data for Internal Decision makers IT Support Real time data for suppliers and customers