Supply Chain Management of Fmcg Companies

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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

3/9/2011

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 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 validation is over in head office, the orders are passed to the manufacturing unit. Once the manufacturing process is over the goods are transferred to the stockpile and from there the allotment to the warehouses starts. Each unit of good are despatched to their respective warehouses and finally from warehouses the goods reach the end consumer. Certain best policies followed by the company is the usage of multimode transport system comprising of Roads, rails, ship. All assets which are transported are connected through the GPS signal for the purpose of location. All the warehouses of the company follow the 5S principles and eco friendly methods are used to preserve the material. EMAMI LIMITED Overview Emami Group, a conglomerate born out of Bengal has a pan India presence through its series of brands and business initiatives .The Emami group has a turnover of about 3000 crores. Emami Limited, the flagship company of the Group. Emami Limited has over 30 brands under its portfolio.

Supply Chain Process Emami deployed SAP in 2006. The Company invested in a comprehensive information backbone that reinforced its supply chain. The SAP ECC 5.0 implementation project Udaan was rated among the top 10 innovative studies by IBM. The Company invested in large enterprise servers and high-speed LAN and WAN communication systems. These IT investments have made it possible to connect all Emami locations across India on a real time basis. The SAP implementation – an integrated ERP system and supply chain optimisation tool completed in 2008-09 – is expected to facilitate cost effectiveness, enhance production, besides scheduling and quicker dispatch and resource optimisation. Going ahead, the Company aims to integrate SAP ECC 5.0 with bar codes or Radio Frequency Identification (RFID) as well as provide instruments to the sales force to facilitate real-time information sharing. Due to the implementation of SAP, the following benefits are accrued: Standardized Work Processes Emami...
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