Supply Chain Anagement of Fmcg Companies

Topics: Supply chain management, Supply chain, Marketing Pages: 30 (9627 words) Published: August 13, 2011

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 should be developed to address how a given good or service will meet the needs of the customer. A significant portion of the strategy should be on planning in order for the supply chain to be profitable Develop It involves building a strong relationship with suppliers of the raw materials needed in the making the product the company delivers. This stage not only identifying the reliable suppliers but planning for shipping and delivery are also involved. Make In this phase the product is manufactured, tested, packaged and scheduled for delivery Deliver This is the logistics phase the goods ordered by the consumers are delivered according to the delivery plan return .This is the reverse logistics stage where the defective items are returned to the company. GODREJ CONSUMER PRODUCTS LIMITED Overview Godrej also have a strong emerging presence in markets outside India. The major overseas acquisitions include Keyline Brands of the UK, Rapidol and Kinky Group of South Africa and Tura of West Africa. Supply Chain Process Supply Chain process for Godrej begins with the forecast made at the branch level and then the next consolidation of the forecast made at each branch level will be scrutinized in the head office. Once the... he Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage.

According to a study by the McKinsey Global Institute (MGI), 'Bird of Gold': The Rise of India's Consumer Market, Indian incomes are likely to grow three-fold over the next two decades and India will become the world's fifth largest consumer market by 2025, moving up from its 2007 position as the world's 12th largest consumer market.

India ranks second in the Nielsen Global Consumer Confidence survey released on January 7, 2010—an indication that recovery from the economic downturn is faster in India with consumers more willing to spend. The survey showed that in addition to the emerging markets of Indonesia and India, eight of the top ten most confident markets in The fourth quarter of 2009 came from the Asia Pacific region.

The FMCG market is set to treble from US$ 13.1 billion in 2009 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential.

Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food processing industry. According to a FICCI-Technopak report, despite the economic slowdown, India's fast moving consumer goods (FMCG) sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018. The report states that implementation of the proposed Goods and...
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