Supply Chain Management of Fmcg Companies

2373 WordsMar 30, 201110 Pages
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…show more content…
Higher ratio indicates that the company is able to replace its inventory at a faster rate and hence the holding cost decreases. The number of inventory turns has decreased for Godrej and this is clearly indicated by the increase in the total inventory of the company. The number has decreased for both Emami and Dabur indicating both have improved their inventory management performance. 14 12 10 8 2010 6 4 2 0 Godrej Emami Dabur 2009 Number of inventory turns Total inventory in days This ratio has increased for Godrej by 15.83 percent. This ratio has decreased for both Emami and Dabur by 27 percent and 4 percent. This shows that Godrej has inventory stocked up for more number of days before it reaches its customers. Days of sales outstanding Days of sales outstanding has increased for all the companies under analysis except Dabur for which the ratio has decreased by 2.3 percent. For Godrej and Emami, the days of sales outstanding has increased by 1.94 percent and 5.27 percent respectively. Days of payable outstanding Days of payable outstanding has increased for both Godrej and Dabur by 25 percent and 17 percent, whereas for Emami, the ratio has decreased by 35 percent. The decrease in the ratio of Emami is due to fact that Emami has reduced
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