ABSTRACT:

Covid-19 has caused a major change in four factors that has an impact on the supply chain. To minimize
its negative impacts companies, need to come up with new feasible strategies. Again, strategies should
focus on material sourcing, manufacturing, and distribution. The COVID-19 pandemic has slowed
global trade and disrupted supply chains. Factories are doing everything possible to meet demand,
including adding third shifts and increasing production facilities.

FAST-MOVING CONSUMER GOODS:

The term "Fast Moving Consumer Goods" (FMCG) refers to finished goods and services intended for
personal or household consumption. FMCGs are sold quickly at low rates and are not used in the
manufacturing of other goods and services. FMCGs usually have a short shelf life.

Foods & Beverage Personal Care Household Care

E.g., Milk & Dairy E.g., Hair Oil
E.g., laundry Detergents

E.g. Hair Oil

FMCG SECTOR IN BANGLADESH:

The fast-moving consumer goods (FMCG) industry is one of Bangladesh's most important industries.
The FMCG business in Bangladesh has grown dramatically in recent years, with significant qualitative
and quantitative advances in the consumer durables category. When buying high-involvement products
like electronics, luxury things, or lifestyle items, the prior purchase decisions made at home are usually
not changed in the store. On the other hand, for low-involvement products such as salt, flours, pens,
chocolates, and so on, considerable deviations from the earlier brand choice decision are regularly
recorded. In marketing, these products are referred to as FMCG (fast-moving consumer goods).

By 2025, the global FMCG market is estimated to reach $1.54 trillion. Whereas Bangladesh's
consumption spending accounts for 97 percent of national revenue and domestic yearly consumption
exceeds $130 billion, the rise and survival of Bangladesh's FMCG business are fueled by a few main

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factors. As a result, Bangladesh is a gold mine for the FMCG industry. During times of economic
instability, this is an island of stability. Annual domestic consumption of more than $130 billion as of
2015 (bdnews24.com). This sector is one of the fastest-growing segments of the industry. The high
population estimates of the country (164.67 million) make the FMCGs industry very promising. Private
consumption growth has also risen over the years, with a large rise in GDP. GDP growth in FY 2016-17
was 7.28% compared to 7.11% in FY 2015-16, while private consumption growth in FY 2016-17 was
10.3% compared with 9.1% in FY 2015-16. Even in the harsh economic conditions of Bangladesh, the
FMCG market continued to grow at a respectable pace of over 9% (Uddin et al., 2016).

Several triggers with generalized competitive advantages are to blame for this good fortune, which can
be divided into the following categories.

1. Demand is fueled by rapid rural-to-urban migration. Because work prospects are often concentrated in
metropolitan areas, 35.70 percent of FMCG expenditure comes from these areas.

2. According to the Boston Consulting Group, Bangladesh's 34 million MAC citizens have experienced
great economic progress. As the process unfolds, the FMCG business should be able to benefit from the
potential by 2025.

3. EPZ established a large number of jobs for women, which aids in poverty reduction and increases
demand for FMCG products.

4. Because of its climate and geographic location, Bangladesh is a rich mine of raw materials and low-
cost labor for FMCG companies.

5. Consumers in Bangladesh are optimistic. More than 60% anticipate that salaries will rise year after
year. Living conditions, according to 79 percent of respondents, have improved. As time goes on,
consumers will want higher-quality products.

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FMCG IN COVID-19 SITUATION :
The world is still dealing with the effects of the coronavirus pandemic, more than a year. At the height
of the pandemic, Bangladesh imposed temporary closures of non-essential stores, and venues, as well as
putting a ban on large public gatherings and encouraging people to work from home wherever possible.
During COVID some industries faced major loss while for others the pandemic was a blessing. 2020 is
proving to be one of the most challenging years for doing business, mainly due to the COVID-19
pandemic. Businesses across industries are reevaluating their strategies to restart operations while
simultaneously taking measures to deal with the crisis. Companies that sell medical products, hand
sanitizers used this situation to make a noticeable profit. But for the rest of the companies due to trouble
in distribution, manufacturing companies' growth is reduced. Covid-19 pandemic has upended the
FMCG industry like never before. Despite manufacturing and selling essential products, in this
lockdown period, FMCG companies have had to swiftly respond to unprecedented challenges, with
innovative strategies to maintain supply chains and ensure consumers can access their products.

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PROPOSED IMPROVEMENT OF SUPPLY CHAIN:
Let x is an FMCG company in Bangladesh. Before the pandemic, the growth of the pandemic was good
enough and the contribution to the economy was satisfying. But when the covid-19 hit the country, the
supply chain of this company was hampered because of lockdown. Now the company needs to change
business strategies in its supply chain to cope up with the new normal. Our proposed Post COVID
Supply Chain Management System is described in the following section which will be more effective
also after the Pandemic.

Material Sourcing:
 Collection & Production of raw materials from internal source: It is seen that the majority of
the raw material that is needed for the production of goods are collected from outside of the
country which possesses the cost of tax. Also, during lockdown when borders are closed the
import of the materials is stopped this causes production to cease in our country. If we can make
the raw materials in our own country, we can avoid the tax cost also can stay active in pandemic

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 situations. This may initially cost arm and leg but in long run, it will be beneficial and worth the
cost.

 Material Collection from the local area: To build a local industry so that the carrying cost
from the different divisions is reduced. If we can provide an industry that will only produce the
raw materials needed in all possible places where production takes place, we don’t have to go to
other areas to collect raw materials.

 Materials Stock: It is nearly impossible for a developing country to build every type of material
within-country boundary. Those materials which are imported are necessary to be stocked well.
In case if for any reason like lockdown for COVID-19 trading pauses, we will have sufficient
resources in our stock to continue for few years. If we consider the COVID case, it is seen that
virus spread in waves. Hence when the infected number reaches its peak government is bound to
provide lockdown. In such a situation the reserved materials can be utilized.

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Manufacturing:
 Automation/Robotic Process Automation (RPA): For FMCG companies, management is a
major issue. Needless to say, they have a lot of requirements in that area. Net losses as a result of
compounding issues in these management areas are always lost profit possibilities. RPA uses the
inherent capabilities of robotic computing and data science to solve these issues. It is common
knowledge that computers can execute difficult calculations faster and more precisely than
humans. This will decrease the number of workers needed. Hence in pandemic times, we don’t
have to think about the health issues of workers.

 Hostel Facilities for workers: Providing a living place for employees inside the company
boundary will reduce the risk of virus transmission; workers won’t need to go outside also they
may have good medical facilities available so that if they get infected, they can be treated as
quickly as possible.

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  The shift in the working process: A normal human can’t work for a long time with full
efficiency. To make the workers work more efficient in this pandemic we may assign shift-based
work where each worker will work for a certain amount of time (say 6 hours). Automation
reduces the number of workers needed. And the shift in a working hour will make those work
efficient. We can set the salary here keeping the working hours in mind. Moreover, we can cross-
train workers so that they learn to multitask. This will help them to give a proxy to other workers
if they are absent for any reason like infected in Covid-19.

WAREHOUSE:
 Monitoring System: To ensure the safety of the warehouse. Make sure that the entrance point of
the warehouse should be full of safety gear like an infrared thermometer, sanitizer, hand wash,
etc.
 Space Management: Use the warehouse in such a way that maximum space is used and no
waste space is present.

Instead of large parcel warehousing for industrial and commercial purposes, relatively smaller
warehouses will see robust demand driven by e-commerce companies, a segment that continues to
expand with new more services. Fast-moving consumer goods (FMCG) firms have helped us get the
needed permissions for warehouses and also got our vehicles registered. Due to this, we can supply
essentials regularly, though not at the same pace since we are short-staffed. The company has separate
warehousing facilities for essential and non-essential commodities, of which the latter now remains shut.

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DISTRIBUTION:

 Route Optimization: Using a train can cause maximum carriage of products at a lower cost. We
can do the distribution by railway to the areas which have rail routes available. Usually, rail
routes are continuous. Even during lockdown traveling is allowed by rail. Also, less chance of
accidents.

 Warehouse creates in the division: Creating warehouses in Division will help a company to
store products at the Division level so that from this warehouses company can spread their
products easily all over the division. Warehouse at the division level can minimize the cost and
can broaden the way of distribution. Warehouse at division level can also give the company
about the supply and demand characteristics of any certain area and then company can act

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 accordingly.

 Distribution tracking: We need to track the stock available in each area. The area where
maximum sales occur can have more priorities afterward.

WHOLESALER:
 Must have good knowledge of marketing and good image in their area. Must have good
networking
 Can develop an app that will track and can be used for monitoring by the wholesaler. Instead
of going there physically he can track what is needed in that shop from his place and transfer
that accordingly.

RETAILER:

Retailers play an important role in any FMCG company. They can easily boost the selling rate of a
product if it is good in quality and if the company makes them happy with their services. So all FMCG
companies have to build and maintain a good relationship with all retailers.

CUSTOMERS:

If a company can't satisfy the consumers with their products, nothing can be worst than this for an
FMCG company. In a pandemic situation, the taste of customers has changed largely. So the company
has to look after the current demand of consumers in new normal. Besides, all companies should start
'After sales service' to collect the feedbacks of customers. It should be remembered that ''one happy
customer would bring a few more happy customers, but one unhappy customer would spook a lot of
customers away.

GOVERNMENT NECESSARY STEPS:

The government may reduce the tax for imports. Also, the transportation sector which includes road and
highway development should be prioritized.

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 SWOT Analysis

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CONCLUSION:
To sum up, the proposed supply chain may work efficiently in the post-pandemic situation. In a new
normal state to cope with the previous loss supply chain, our proposal might be implanted for the
development of FMCG company. This supply chain will contribute to the growth after the pandemic
situation.

REFERENCE:
 https://thefinancialexpress.com.bd/education/impacts-of-covid-19-on-fmcg-industry-1593628831
 https://www.thedailystar.net/next-step/news/how-fmcg-industry-bangladesh-coping-lockdown-1904839
 https://www.goldenharvestbd.com/shops/foods-
festival/#:~:text=Global%20market%20size%20of%20FMCG,at%20Bangladesh%20few%20key%20driv
ers
 https://www.arx.cfa/~/media/F11888E401214D2696802E88B72DB141.ashx
 https://blog.robotiq.com/strategies-to-improve-manufacturing-process-efficiency
 https://www.researchgate.net/publication/345773724_An_Exploration_of_COVID-
19_Pandemic_and_its_Consequences_on_FMCG_Industry_in_Bangladesh

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