Network Optimization prepares leading FMCG player for future growth

SITUATION
The customer needed a ?exible
and adaptive supply chain
network for futuristic growth.

IMPACT
The existing supply chain network
was not cost effective in the
dynamic market that had stiff
competition.

RESOLUTION
We devised a solution model that
considered end-to-end cost and
we detailed out monthly and
yearly plans for capacity
enhancement and execution of
supply chain plans.

The Customer
The customer is a leading Indian FMCG company with rapid yearly business growth attributed to 3x increase in the overall sales in last 5 years.

The Need
The current market is very dynamic with stiff competition resulting in low margin and challenges like high responsiveness, improved ?ll rate etc. Though the customer had a mature ERP integrated planning system, they required a futuristic supply chain network to introduce their new variants in the market. The network had to be ?exible and adaptive to absorb cost implications and support the future growth of the business.

The Need
The current market is very dynamic with stiff competition resulting in low margin and challenges like high responsiveness, improved ?ll rate etc. Though the customer had a mature ERP integrated planning system, they required a futuristic supply chain network to introduce their new variants in the market. The network had to be flexible and adaptive to absorb cost implications and support the future
growth of the business.

The Solution
NWCC Group consulting experts provided a successful solution model that considered end-toend cost and inherent real time constraints of the value chain, and an exhaustive roadmap for strategic initiatives for the next ?ve years, based on
the customer’s long-term plans. The solution model involved a decision plan for capacity enhancement in next one year and related tactical network decisions. We then detailed out a monthly plan and RCCP activities that provided production and
network inputs for cost effective and ef?cient execution of supply chain plans.
The solution model incorporated costs related to sourcing, taxes, conversion and transportation, and constraints related to serviceability, truck load,
product mix loading, capacity and complex tax laws in India. It included variant and sub-variant level product changeovers that made it easily executable.

Business Benefits

• Definition of a network based on cost to serve model
• Optimization of network to increase direct serve to market
• Inventory reduction by 15% across supply chain
• Recommendation of short term optimization potential by 1.03% and long term optimization potential by 2.4%