March 23, 2024

Logistic and
supply chain
management
FMCG
Members
Anmol Sharma
Durva Pawaskar
Kinjal Rathod
Niharika Singh
 FMCG stands for Fast-Moving
Consumer Goods. These are everyday
essentials like packaged foods,
toiletries, and cleaning supplies that
are inexpensive, frequently purchased,
FMCG and quickly consumed. They are the
backbone of the consumer goods
industry, requiring efficient production
and distribution to meet our constant
demand.
The Role of Operations Management
in the FMCG Industry

FMCG (Fast-Moving Consumer Goods)

Industry
Production, distribution, and
marketing
Food, beverages, toiletries, household
products
Operations Management in FMCG
Ensures efficient production,
distribution, and delivery
Production Strategies: Make to Stock vs. Make to Order

Make to Stock (MTS)

Produce goods based on forecasted demand
Maintain inventory stock
example - Dove, Surf Excel
Make to Order (MTO)
Produce goods after receiving customer orders
Reduced inventory holding costs
example - limited edition packs,
(DELL)
Production Systems in
FMCG Manufacturing

Three Main Categories

Continuous Production
High-volume, standardized products
Beverages
Batch Production
Varying demand or specifications
Cosmetics, personal care items
Job Shop Production
Customized or specialty products
Premium food items, niche household goods
 Mixed Systems Based on:
Product
Optimizing characteristics
Production Demand variability
in FMCG Market dynamics
Strategies for Efficiency
(continued):
Just-In-Time (JIT)
Production
Total Quality
Management (TQM)
 Importance of Forecasting:
Predicting future demand

The Power
Planning production
schedules
of Managing inventory levels
Forecasting effectively
Common Forecasting Tools:
in FMCG Time series analysis
Operations Regression analysis
Exponential smoothing
Causal forecasting methods
 Putting
Forecasting Collaboration is Key:
into Action Historical sales data
Market research
Retailer collaboration
Case Study Example: (Choose a
specific FMCG company example)
Company utilizes advanced
forecasting models
Optimizes inventory levels
Minimizes stockouts
 Emerging Techniques:
Internet of Things (IoT)
Embracing
Real-time inventory
Technology for
Operational tracking
Excellence Artificial Intelligence
(AI)
Demand forecasting
Automation
Robotic warehouse
operations
 Adapting to Change and Challenges

Addressing Contemporary Challenges:

Agility
Sustainability
Efficiency
Shifting Focus:
Agile Supply Chains
Sustainable Practices
Continuous Improvement
 March 23, 2024

Thank You