Consider a company that you have previously worked for or a
public FMCG company. Describe the various stages in the supply chain and the
different flows (product, information, money) involved.
FMCG – Supply Chain:
The requirement for constant stock at all stages in Fast Moving Consumer
Goods (FMCG) is a continuous requirement for all Logistics, Information
Technology Managers and Operators involved in the Supply Chain.
Stages and flows of FMCG product
Product information:
As I have a speculation bank work formerly and they
have also the product for consumer for financing for different purposes which
is called consumer financing.
Given below is to elaborate the stages for FMCG
Product: -
a)
Know your client (KYC):
In this stage the marketing / sales team approached by or
themselves the clients and give the brief of benefits about the product.
Also this team is responsible to maintain the database of the
entire client either existing or historic clients, which also may help to
create the analysis.
b)
Proposal:
After mutual agreement with the client of the product the
proposal will be made and submit for acceptance to the prospect client.
Once the client accepts the proposal after changes in terms
by mutual agreement the proposal sent to the operation department to the make
the contract to finalize the terms and necessary documentations.
c)
Contract:
Contract is the document in which the agreed terms and
financial between client and the FMCG Company will be documented under necessary
checklist which was already adopted by the company as system operating
procedure (SoP).
d)
Approval:
Contract is sent for approval for the credit committee for
final approval to disburse.
e)
Disbursement:
After approval of Credit Committee the operation department
is complete the documentation in respect of given criteria, sent to the finance
department for make disbursement the said approved amount / money.
f)
Scheduling / Amortization:
Above is the final step for one side of transaction. Now the
amortization / schedule of the pay back the amount / money from the client to
generate and sent to the operation department to follow.
g)
Recovery:
It is normal that clients pay their installment / rental on
time but in real world ups and down came in the business, if any client unable
to pay their installment / rental on time than operation department analysis
and make on judgment they will decide to reschedule the terms to make
transaction intact and fruitful for both the parties or if found will full
defaulter than they handover the case to recovery department. The recovery department approaches the client
and engages the collaterals for make possible the recover the amount Fast Moving Consumer Goods (FMCG)
Company invest on them.
h)
Management Information Reports (MIS)
This is more important area which FMCG have to the benefit
from the technology. The Management
Information Reports will help in all stages to make flow easy and filtered the
client in the benefit of the Company; moreover this may help to analyze the
clients / groups for future. The MIS
reports will also help for operation and recovery team to judge the pattern of
inflow of payment / installments.
The MIS report will also help for Credit Committee to
initiate the approval based on its history or running pattern in the market and
its account statements.
MIS will also the reports to submit to the management the
footing of all the client(s) status report to take the companies affairs and
help to directive to be taken.
In these above case the product which is money
show the stages and flow of product is shown.
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