DRIVING
THE GROWTH IN FMCG INDUSTRY
Overview
The FMCG industry is the 4th largest sector in India
and it typically depends on efficiencies in logistics,
supply chain management and procurement and
has one of the highest inventory turnover ratios
among diverse sectors of business and economy.
The major growth drivers in the industry are
growing awareness amongst the consumers,
easier access and the changing lifestyle. When
considering the urban and rural market, urban
accounts for 55% of the revenue generated by the
industry whereas rural and semi-urban account
for the remaining 45%. As observed and analyzed,
the semi-urban and rural markets have been
growing at a faster pace than urban as demand
for quality products has been going up and
spending power has also increased.
To further strengthen these growth factors,
companies need to focus on creating a quality
supply chain behind the products, which is
cost-effective, trackable at every point,
collaborative and efficient. The industry requires a
tech-enabled structure to meet the procurement
needs of today and tomorrow.
To learn more about our solutions,
write to us at info@moglixbusiness.com.
Procurement & Supply Chain in FMCG Industry
Supply chains and procurement networks of FMCG
companies face major challenges of aligning
inventory planning, forecasting and execution
capabilities across the organisation, extracting
inferences from large volumes of data at SKU
locations at periodic intervals to improve
forecasting, identifying and addressing gaps in
catalogs for competitive pricing, managing data
stored in massive legacy systems run on ERP
enabled technologies and fast order fulfilment
through multiple levels and high inventory turnover
rates to ensure smooth operations and managing
complex distribution system comprising multiple
layers of numerous small retailers between the
company and the customer.
Procurement networks of FMCG companies are
characterized by a highly diversified supplier
portfolio that brings together intra-supplier
variances in the pricing, quality standards and
delivery schedules in addition to engagements of
resources, efforts and time in managing complex
procurement processes.
WHERE IS THE GROWTH LOCKED? TRANSFORMATION OF YOUR SUPPLY CHAIN

For the same part code, different plants source
different items leading to product mismatch.
This leads to higher costs and more manual
errors.
Non-uniform pricing structures across plants
resulted in price differentiation for the same
product, leading to higher procurement costs.
Excel-based Offline System leading to poor
data quality in terms of insufficient material
description of products in requirement
Inefficient Collaboration due to absence of
common platform for Supplier-User
collaboration leading to multiple vendor
follow-ups
An Unintelligent and non-integral System
leading to different terms and conditions of
freight and credit terms across MRO
categories
Standardisation and consolidation of multiple
vendors by acting as a one-stop-shop for MRO
supplies, leading to cost savings.
Established a flat pricing structure with
standardized discounts across plants, and much
more visibility into their pricing process.
Identified and rectified unclear and ambiguous
purchase data, enabling clean data for efficient
and accurate data analysis
SAP Integration with Moglix Buyer’s Portal for
real-time tracking of goods and analytics
Ensuring quality check at 3 steps: supplier side
before pickup, inward and outward quality
checks.

THE ROAD AHEAD

Cloud-hosted data integration systems, contract
analytics and predictive analytics can enable FMCG
companies to get a single-window insight into gaps in
procurement networks, supplier performance KPIs and
deploy strategic supplier selection practices to
streamline supply chains. Artificial intelligence and
search-driven analytics can enable FMCG companies to
effectively monitor procurements and payment data and
identify optimal levels of inventory holdings against lost
sales, generate accurate demand forecasts through
statistical analysis of data across outlets, access order
quantity recommendations to reduce the out-of-stock
frequency and replenish inventory stocks on time.

To learn more about our solutions,

write to us at info@moglixbusiness.com.
 ABOUT THE AUTHORS:

Partha Dash Amandeep Bhan

Senior Vice President Senior Vice President

With 15+ years of experience, Partha Dash brings invaluable Amandeep Singh Bhan is a seasoned business leader with
leadership and insights to Moglix. His expertise lies in 18+ years of experience in functions of sales, strategic
business development, P and L management, international partnerships, and consulting across the globe. His expertise
marketing, emerging market business strategy, sales and lies in strategic planning, business development and
distribution management, retail management and transformation, operational excellence and consultancy.
consumer sales.

Moglix Tech-led MRO Procurement

Reduce direct and indirect costs, consolidate fragmented vendor base, experience consistent buying across multiple sites, and
leverage your data to deliver strategic value through our tech-led procurement and supply chain solutions.

Moglix Packaging Solutions

Choose aesthetic branding display, graphics, and content to enhance your products' overall appearance and ensure lasting
durability and timely delivery through our unified platform for 'concept to delivery' of all packaging products.

Moglix SaaS Solutions

Enhance your contract management journey with the help of an intelligent contract automation solution and spot exceptions,
optimize procurement experience, and improve supply chain performance - all from one intuitive, award-winning solution.

Contact Us: info@moglixbusiness.com

Learn More: https://business.moglix.com/
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