Friday, December 26

FMCG- Supply Chain Management


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.