Supply Chain Blog

FMCG Romania : the benefits of Interim Management

Posted by Dave Jordan on Fri, Mar 30, 2012

Interim SC Expert at Hand Netsize resized 600Interim Management is an approach used by companies to “make things happen” within a clear budget and without the headaches of recruiting an full time employee (FTE).  The benefits are numerous but initially……

Immediate access to expert supply chain skills and experience in your sector.

No hidden extras. You pay the daily fee rate and expenses; no more no less.

Training for full time staff to ensure supply chain knowledge and skills imparted and retained.

Experienced supply chain interim managers are available now at all levels of seniority.

Romanian team permanently based in 3 locations.

International experience gained from working in other countries and in relevant sectors.

Motivated to achieve results to tight time and cost objectives.

Maintain the resource while you need it without any financial burden at contract end.

Avoid permanent employee costs which are significant in Romania.

No international flights and early departures for the week-end!

Ability to challenge the supply chain status quo and make sustainable change in your business.

Generate savings and efficiency improvements in a short timescale.

Expectations can be high and should be as you are buying international expertise.

Make your business prepared for the post recession economic recovery.

Excellent return on investment.

No political axe to grind and no bias; straight forward advice and action.

Take a look at the Enchange approach to Interim Management and call us to arrange a meeting in Romania. If you are not sure you need Interim Management then you probably do!

Tags: Interim Management, Dave Jordan, Performance Improvement, Supply Chain, CEE

FMCG Route To Market (RTM): Talking Heads Discussion Part 1

Posted by Dave Jordan on Wed, Mar 28, 2012

Small table, two blokes, close up camera shot.

Mal: RTM.

Jeff: What’s that then, Malaysian TV station?

Mal: No.

Jeff: Oh, it’s the IATA code for The Hague airport where they send all the war criminals.

Mal: Er, no. It’s the business.

Jeff: What business is that then?

Mal: Well, any business really, like FMCG or brewing or pharmaceuticals.

Jeff: Pharma what?

Mal: ceuticals. Tablets, medicines and that sort of stuff.

RTM Map NetsizeJeff: So what about RTM, what’s it all about?

Mal; It’s the sharp end of the consumer industry - getting stuff onto shelves in shops.

Jeff: What sort of stuff?

Mal: Any stuff really.

Jeff: Cheese?

Mal: Yes.

Jeff: Beer?

Mal: Yes, beer; all sorts of beer.

Jeff: M&Ms?

Mal: Yes, yes, yes even M&Ms.

Jeff: Ok then. What does RTM stand for?

Mal: Route …..To…..Market, that’s what.

Jeff: Route to Market. Like a map then?

Mal: No, not like a map. Well, yes like a map. It is how you get your product so that it is in front of consumers.

Jeff: What’s so special about that then? Everybody does it; even my little corner shop always has stuff on the shelves. Sounds like a lot of nonsense to me. Nothing clever.

Mal: Nothing clever? I’ll have you know that many big companies get it completely wrong. Don’t’ pay enough attention to it, see. They just assume what they do is optimum when in fact they are wasting time, effort and cash. A right mess, I can tell you.

Jeff: So, what can you do about it?

Mal: RTM. If they studied their Route To Market distribution network they would see their weaknesses and their strengths and then deploy resources accordingly. You would think that in a recession these companies would want to sell more.

Jeff: Why don’t they?

Mal: Because they don’t know what they don’t know.

Jeff: Eh?

Mal: If only they spent a little time and effort on their RTM they would understand their problems and opportunities much better. Where are you going?

Jeff: I’m off to Patel’s corner shop to see how good this RTM is locally. This Route To Market thingy has got me worried and I must have my yellow M&Ms.

To be continued……..

Tags: Brewing & Beverages, FMCG, Route to Market, Dave Jordan, Humour, Pharma, Supply Chain, CEE, Distribution, RTM Assessment Tool

FMCG, Brewing and Pharma : Famous Last Supply Chain Words

Posted by Dave Jordan on Fri, Mar 23, 2012

The “Famous Last words” of people can be intriguing, rude and frequently very, very funny just as much as they can be complete nonsense. In the context of Supply Chain, “Famous Last Words” are usually uttered just before something disastrous or unexpected happens. Rarely is the term used with the expectation of good news to follow.

Here are some “Famous Last Words” you may hear in your FMCG, Brewing or Pharma business.

  • CEO/Chairman “This S&OP process works extremely well.”
  • Marketing Manager “The artwork will definitely be here on time.”
  • Brand Manager “There will only be three colours on the label artwork.
  • Finance Manager “Working capital continues to reduce.”
  • Sales Manager “This months’ forecast will be accurate.”
  • RTM Manager “The Distributor network runs like clock-work.”
  • Planning Manager “All skus in the range are available.”
  • Factory Manager “We are reliable here, we do not have breakdowns.”
  • Procurement Manager “All RM/PM supplies are guaranteed up to year-end.”
  • Safety Manager “Our last Lost Time Accident was over a year ago.”
  • Logistics Manager “No problem, plenty of space in the warehouse.”      
  • HR Manager “We run a happy ship and nobody ever leaves.
Nothing is ever as simple as it looks and sometimes commitments and promises fail to materialise just at the wrong time.

There are many more examples from real life so please feel free to leave yours in the comments section.

 Supplu Chain  Expert on site

Why not give us a call to discuss your needs?

 

Tags: Route to Market, Dave Jordan, Humour, Supply Chain, CEE, S&OP, Forecasting & Demand Planning

Get your FMCG Balkan Supply Chain ready for EU accession

Posted by Dave Jordan on Wed, Mar 21, 2012

The EU has not welcomed any new member states since Bulgaria and Romania joined the club in 2007 but there is quite a queue knocking on the door and expecting the ok over the next few years. The hopefuls include a number of Southern European Balkan countries plus Turkey and Iceland. The challenges in all aspects of life and business for these countries will be daunting even if they do not see this at present. The rose-tinted glasses tend to fall away within a few months of accession as very little changes and not very quickly either so be prepared.

Get your Balkan Supply Chain ready for EU successionJust after the clock ticks into the day of accession and the corks pop and heads start to ache these new countries are exposed to a whole new ball game of rules and regulations and expectations. While this might not appear to be the most important area for a majority of the population, Supply Chains need some work in advance of accession. If you try and keep doing what you usually do in FMCG, Brewing Pharma etc then you will rapidly come unstuck. This is not only related to rules and regulations but it is more about preparedness for the new opportunities the EU market provides.

Here are 5 important areas you need to consider now if you wish to at least maintain your performance status quo after EU accession and avoid a business dip.

1. Factories

Factories in non-EU countries have usually survived behind some measure of duty barrier or tax breaks which evaporate when Brussels gets involved. One minute your medium-sized factory is producing exclusively for the home market and the next minute someone in Euro HQ is well advanced with a revised regional souring strategy. If you are a low cost and high quality producer then you have a chance to survive but if your manufacturing metrics are weak and declining you might want to address this now before your volume is swallowed up elsewhere. The flexibility of a local factory essentially under local control could be replaced by distant external supply and the associated Customer Service challenges.

2. Transport

Do you have a transport contract with one or more professional providers? More likely you will use a variety of individual truck owners under spot buying arrangements. The quality of trucks will come into focus if you expect to export goods into the EU. Trucks have to meet EU regulations and what may be allowable in your home country will be “offside” in the EU. Talk to professional transport providers now to ensure your business does not receive an unexpected surprise. Depending on your business size you may consider a 3rd party logistics provider (3PLP) or if you are already more mature, a 4PLP.

3. Warehousing

Are you operating out of ancient facilities dotted around the country? Is stock loss/theft a major issue but too thorny to address? Whether you operate in-house or 3PLP warehousing you should reviews your network and in most cases start to improve the physical quality of the facilities and the associated processes and procedures. If major 3PLP players are already in your territory you might start discussions now as quality warehousing may be in short supply until companies decide whether or not to enter the market.

4. Systems/IT/Data

Are you using a state of the art ERP or do you rely on spreadsheets and local IT solutions that are difficult to expand? If you are part of a multinational you should be well on the way to harmonising systems to ensure you can “talk” to HQ in the same IT system and vice versa. Is your master data aligned and do you have a masterdata manager in place? One specific tip if you are moving to or changing your ERP; in the final few weeks before changeover you would be wise to add extra security at your storage locations! This is the last chance saloon for illegal “stock shrinkage”.

5. People & Organisation

And last but not least, people. Are you carrying expensive passengers and conversely are some key roles unfilled? You should review your organisation to ensure skills and experience are aligned with the business objectives in the new EU environment. For example, if you expect to ramp up exports in to EU-land then you had better make sure you have someone in that position and someone who knows the new import/export legislation like the back of their hand. To balance the head cut it is likely some current roles will melt away as local for local legislation is superseded.

Overall, you might consider appointing a Getting Ready Team to help guide the company into the new environment and provide regular status updates to senior management. What is clear is that if you do nothing then you will be in trouble so why not take advice from supply chain people who have done this before?


Tags: FMCG, Dave Jordan, Manufacturing Footprint, Supply Chain, CEE, Logistics Management, Outsourcing

Top 7 Facts & Fiction of Using Supply Chain Consultants

Posted by Dave Jordan on Mon, Mar 19, 2012

Management consultancySome FMCG, Brewing, Pharmaceutical organisations are comfortable with the idea of using consultants while others avoid them like the plague. Having been on both sides of the fence with respect to supply chain consultancy services I can appreciate the pros and cons for each party. There is some truth but an awful lot of misconceptions held on the subject and I thought I would look at what is fact and fiction, in my humble opinion!

1. They are expensive.

Fiction. At the same experience level consultants will undoubtedly be cheaper than the full people cost of a full time employee. Perhaps fees sound a lot when expressed as a daily rate but in reality they are likely to be very competitive.

2. They don’t know any more than we do.

Fiction. One of the benefits of consultancy is that you see a multitude of circumstances in very different companies in a variety of sectors. The cumulative experience gained is something you are unlikely to find in long term employees in an organisation.

3. When they have gone everything reverts back to as it was.

Fiction.  Only if you let it! Good consultants will ensure knowledge is transferred and thoroughly tested through one on one or team training before ending a project.

4. They change things.

Fact. Enabling change is precisely the aim. You would not hire a consultant to maintain the status quo as you want something different to happen, e.g. lower costs, better processes, greater efficiency.

5. They do “just enough” so they can return later and get paid to fix it again.

Fiction. The reputation of consultants can be easily destroyed through bad publicity whether deserved or not. Sustainable improvements in supply chain performance get noticed and word gets around quickly if anyone is unprofessional.

6. They are either just out of university and know nothing or they are pensioners.

Fiction. There is no perfect age to be a consultant but you do need a degree of experience before you can impart this to others. An 18 year old consultant would indeed probably lack credibility.

7. They have short working hours (probably to dash off to the Post Office for the pension payment.)

Fiction. From personal experience I know this to be completely untrue. I have worked extremely long hours to get jobs done against tight timetables. Consultants only get paid for the days they work and clients simply do not extend contracts so you have to get the job done by hook or by crook.

This is just a brief appraisal and there are many more pieces of fiction that could be added. When I was on the other side of the fence I shared some of the negative views but I now appreciate the reality and the value consultants can bring to your business.

Ok, must stop now as the Post Office closes in half an hour...

Image credit: HikingArtist.com

Tags: Interim Management, Dave Jordan, Performance Improvement, Supply Chain

Balanced Scorecard Performance Measurement: Del-Boy Style

Posted by Dave Jordan on Fri, Mar 16, 2012

In a recent post  I took a brief look at the use of Balanced Scorecards in FMCG, Brewing and Pharmaceutical businesses but in fact they are entirely appropriate for any business. Whatever your business size or offering you will benefit from knowing exactly what is going on and where you need to improve.

For once I can name a specific company in this blog. Trotters Independent Traders is a well known UK operation involved in general trading and “knocking stuff out”. This very flexible company is run by 2 entrepreneurial brothers with occasional “help” from a family elder statesman. They operate from an exclusive high-rise accommodation suite and while they are not yet super rich, “this time next year we’ll be millionaires“ is their mantra. This is how the Trotters KPI Balanced Scorecard might look.

KPI Example copy resized 600

With a quick glance you can see who is being a dip-stick and who is playing a blinder.

Cushty, you know it makes sense.

Tags: Brewing & Beverages, FMCG, Dave Jordan, Performance Improvement, Pharma, KPI, Supply Chain

FMCG Supply Chain Challenges: International Rugby Union.......

Posted by Dave Jordan on Thu, Mar 15, 2012

Sacred blue, mon petite pois, bonjour as Del Boy would say. Against all odds, a very young and experimental England rugby team defeated France in the 2012 6 Nations. Add in the fact that this match was in France and the home team had not lost there for several years then this reflects the size of the achievement.

Rugby Supply Chain Analogue copyStrange sport in some ways. The forwards are the incredibly big blokes who seldom score and the backs are the more nimble bodied (but still relatively huge) who carry out most of the scoring. In a majority of sports you score goals or points but in rugby you get rewarded for a “try” which sounds a bit wishy-washy and indecisive if you are not a follower of the game. You also have to pass the ball backwards in order to make progress and go forwards so that presents a challenge in rugby ball supply chain terms. In supply chains you are generally pushing everything forward towards the consumer shelf, continually honing your route to market. Anything coming in the reverse direction is usually unwanted, expired or damaged goods and that easily sticks a spanner in an otherwise slick supply chain.

The rugby ball is not round; nowhere near a perfect sphere and when kicked it reminds me of an FMCG sales forecast – no, please bear with me! Have you ever seen a rugby ball bounce after being kicked forwards and into the sky? If the ball is not caught cleanly the shape means it could actually bounce in any direction at any speed and change both at any time without any warning. Impossible to predict. Sounds familiar?

You could also imagine the scrum being the supply chain team grunting and groaning and expending mammoth sweat and effort to prevent the competition from getting to the target, i.e. the ball. You then watch as the backs (a.k.a. salesmen) stride on and take all the credit and kudos for the entre process! In rugby it is not quite like that as team spirit is very real and paramount but in FMCG/brewing/pharma life that is far too often the reality. In rugby your department or position does not matter and the whole team is focused on scoring points.

The latest 6 Nations championship ends shortly with the last round of matches. The likely overall winners will be Wales but there is just a small chance, a very teeny-weeny chance that England could win. Such a result would mean the English supply chain was slick and fast with almost 100% customer service and the Wales backs went on strike!

I will have a think about how cricket can be used to illustrate supply chain excellence but I fear that might take some time……….

Image credit: RBS 6 Nations

Tags: Customer service, FMCG, Route to Market, Dave Jordan, Supply Chain, Forecasting & Demand Planning

What an RTM Assessment can achieve: FMCG, Brewing, Pharma

Posted by Dave Jordan on Wed, Mar 14, 2012

Just a short blog today for a little bit of fun but with a serious message. If you have not studied your Route To Market (RTM) deployment recently then now would be a good time. What was appropriate even a few short years ago can be wholly out of line with the current market dynamics. You could be aiming too much resource at a reducing target and not enough where markets are growing.

The overall effects of spending time and money on your RTM are increased sales and market share. The return on investment for a short study would be rapid and in the region of several hundred % yet not everyone takes the step of requesting subject matter expert help.

So, depending on what sector you are in an RTM assessment and subsequent action plan would provide something different but all in the same onwards and upwards direction. Some examples of what can be archived:

Wine – uncork your increased sales and market share

Soft drinks – put the fizz back in your business

Beer – don’t let your sales go flat

Liquor – lift your spirits

Pharma – cure your sales issues

Detergents – clean up the market

Tyres – accelerate ahead of the competition

Chocolate – take a bite out of competition

Dairy – let the cream rise to the top

Bakery – increase your slice of the market

Electronics – amplify your sales

Telecoms – ring the changes

Cosmetics – smooth out your sales pattern

Tobacco – set the market alight

If you think of more please comment on the blog.

RTM Ebook

Tags: Route to Market, Dave Jordan, Traditional Trade, Distribution, RTM Assessment Tool

Andre Villas-Boas and Managing Supply Chain Change

Posted by Dave Jordan on Mon, Mar 12, 2012

The merry-go-round continues in English football. Few will have been shocked by the sacking of Les Parry by Tranmere Rovers but the appointment of Ronnie Moore as his immediate replacement is a surprise. Having been sacked by Tranmere a few years ago to make way for the dire John Barnes experiment, this seems like a wasted period.

Oh, of course the other manager to use the exit door on the same day was Andre Villas-Boas and to be fair this had a much higher profile and news coverage. He was the latest in a long line of talented people to enter the Stamford Bridge revolving door and it is unlikely he will be the last to experience this brand of impatient Russian leadership. It was all very short term.

Roman Abramovich is like a man who constantly returns cheese to the supermarket complaining it is mouldy and nobody is brave enough to tell him it is Roquefort.

Manage Supply Chain Change copy resized 600Villas-Boas was brought in at great expense to guide Chelsea through a critical period of change yet within a couple of hundred days he is dismissed. Previously key members of the squad are aging and they appeared not to accept being left out of the team. If high profile team members do not buy-in to change then it simply will not happen. Couple this with a money-rich boss who could not or would not “walk the talk” and there was little chance of success.

Ok, Dave so where is the link to Supply Chain and logistics or is this now a sporty blog?

The Supply Chain lesson in this Chelsea fiasco is all about enabling change. Change never just happens; it takes a great deal of planning and hard work and it is never straightforward and seldom goes to plan - take note Roman!

Your business change could be a Route To Market assessment or a logistics network redesign but whatever it entails there are some simple guiding principles for coping with change

  1. Objectives: Set objectives and make them and the associated timescale very realistic.
  2. Commitment: Agree the project at the top table and communicate by selling not telling.
  3. Expectations: Constantly manage expectations upwards AND downwards in the business.
  4. Communication: Communicate progress frequently, clearly and honestly at all levels.
  5. Training: Does the team have the skills and competencies for the future reality. Identify gaps sooner rather than later?
  6. Celebrate: Celebrate significant milestones and keep interest high.
  7. Manage: Appoint a dedicated and respected Change Manager to guide the overall process of change in the business. This role is very different to the core Project Manger.

If you think about this you see that Villas-Boas never stood a chance as items 1-6 were addressed poorly or not at all. Villas-Boas was recruited as the Change Manager but he was undermined from above and below, if that is not a contradiction in terms.

If you have identified change is necessary then some careful preparation and planning is more likely to bring you success than a petulant, knee-jerk, short term reaction.

Catch up with other Supply Chain related football blogs here.

A Practical Guide to SKU Complexity Reduction in the FA Premier League

Practical Guide to SKU Complexity: FA Premier League Results

 

Image credit: bbc.com

Tags: Dave Jordan, Performance Improvement, Supply Chain

Balanced Scorecard: Keeping Track of Supply Chain Performance

Posted by Dave Jordan on Wed, Mar 07, 2012

How do you keep track of Supply Chain performance within your FMCG, Brewing or Pharmaceutical business? You do, don’t you? If you are not measuring KPIs then perhaps you should stop here, read this KPI piece and then pop back and carry.

You can measure and report in many formats as long as you measure appropriate KPIs for your business. One of the most pointless tasks is calculating and reporting a “KPI” which is in fact worthless and of no interest. Colleagues in Sales & Marketing usually assume they are immune from KPIs as they gleefully sit back and let the Supply Chain guy take the flak at Board meetings. In reality however, the actions of everyone in the company must be reflected in one or more KPIs. If there is anyone in your business who is not impacting a KPI in some way then perhaps you might consider a minor staff reduction!

The following is a demonstration example of a Balanced Scorecard of business KPIs. While many are indeed Supply Chain related you need only look at Sales Forecast Accuracy to see how other departments can influence that measurement to a far greater extent. KPIs are designed (usually 2 or 3 per scorecard quadrant) and presented within the company Scorecard.  Target performance threshold levels are agreed (RAG – Red, Amber, Green) and presented monthly within the S&OP process. 

Supply Chain KPIs

There will undoubtedly be more PIs calculated around the business but those in the scorecard really must be the priorities.

The use of simple colour notation allows business managers to see exactly where problems exist allowing them to focus resources. Conversely, you quickly see what is going well and where you might have to raise the bar to maintain and improve further.

Whatever design you use it does not really matter but:

  1. You must measure KPIs relevant to your overall business performance.
  2. You must report them promptly and widely.
  3. They must be discussed at the top table.
  4. You must review and delete/insert new KPIs as the business need develops.
  5. You must ensure the targets are stretching but achievable as a constant red display is demotivating.

While KPI stands for Key Performance Indicator it could easily be considered as Keep People Interested!

Tags: Brewing & Beverages, FMCG, Dave Jordan, Performance Improvement, Pharma, KPI, S&OP

Call Centers & Service Desks in FMCG, Brewing & Pharma

Posted by Dave Jordan on Mon, Mar 05, 2012

If you are a CEO or MD of an FMCG, Brewing, Pharmaceutical company with a perceived good reputation for service and you operate a Call Centre or Customer Service Desk then you should personally try calling it from time to time.

Customer Service and Call CentresI don’t know about you but I can cope with 2 “press button X for Y” commands from the robotic voice before frustration sets in and the red mist gathers. If you have to press more and more buttons and listen to the inevitable adverts and suggestions to “visit our website for frequently asked questions” invariably you either end up with a person who cannot help you or the line simply drops and you are left listening to the sound of silence. Why is it not possible for the very pleasant person with whom you did actually speak to redirect the call to the appropriate desk? Maybe it is because the desks are in different continents or in fact they could transfer you but are not allowed for some Orwellian reason. If the first call was answered by a human being then there is a fair chance you will be put through to the person who can solve the problem (or opportunity?) the customer is kindly bringing to your attention.

If the number is a paid number then every extra second is stealing money from your customer while they try and escape the clutches of the faceless robot. “Aha, but our customer service number is a free phone service so that makes it ok”, I hear you shout. Think about it! Very little is free in this world and that free phone service is being paid by somebody and that is you, the Producer!

Top of the frustration list must be the language choice selection here in Romania, for example. I know I have touched on this previously but it is getting worse. You press 2 for English service and a new robot tells you “all our agents are busy right now but your call is important to us, blah, blah, blah” – busy answering misdirected calls probably! When finally the phone is answered and you speak in English you either get a silence which never ends or the more frequent slamming down of the phone as if you just said something very abusive. I pressed the right button yet I actually do not get the English service = customer unhappy. Well, why not speak in Romanian then?  I do but clearly my brand of Romanian refined by a Merseyside accent gets the same slammed phone result.

If you offer a Customer Service line make sure it works and is measured by some simple KPIs. Employ a “mystery caller” from time to time to gauge reality.

I leave you with one thought. While the service reputation of your company is at risk here the only sure winners are the telephone network companies...

Tags: Customer service, Brewing & Beverages, FMCG, Dave Jordan, Pharma, KPI, Supply Chain, CEE

FMCG Markets in CEE: Big pack sizes & missed growth opportunities

Posted by Dave Jordan on Thu, Mar 01, 2012

If you are running an FMCG factory the least welcome pack sizes will be something like 50g sachets of washing powder or 50ml tubes of toothpaste, i.e. relatively slow filling and low capacity. In multinationals these small pack skus are likely to have been outsourced to 3rd party co-packers who are geared up for high volume output of small unit sizes especially when the packing is labour intensive. Many of these skus will be sample or promotional packs which do not directly generate turnover and the supply can be switched on and off without disrupting the in-house sourcing unit. The in-house factory can focus on the larger and more profitable pack sizes.

Buyng Power in CEE Euro NetSizeThis is hunky-dory in developed markets where disposable income is high and consumers demand and can afford larger boxes, bags, bottles etc. However, large swathes of Eastern Europe are far from developed and consumer disposable income is much, much lower. If one approach to developing markets is to provide affordable pack sizes to gain consumer trust and loyalty why is there such a prevalence of large “big value” packs in CEE? Ok, the 15kg sacks of “Dhobi Dust” may well be destined for hotels and institutions in the HORECA sector but a huge range of larger packs sizes are offered to everyday shoppers in CEE.

Taking Romania as an example. Recently, the actual population of Romania was estimated in a census at around 19 million people. That is a few million down on the previous census and may reflect a falling birth rate and the migration of families seeking employment elsewhere. So FMCG companies have 19 million Romanians to persuade that their brands and pack sizes are the ones they need, or do they? In another piece of work from 2012 the number of Romanians living below the poverty line is estimated at 41%. So instead of a 19 million target audience for large pack sizes and expensive brands there are approximately 11 million.

Multi-nationals appear to forget a large proportion of the population yet these are the people who aspire to greater wealth and should be a key focus for anyone targeting growth. This may well be a slow-burn opportunity but growth in Western Europe is very low single digit at best. CEE TV and other media are geared to pander to those who already have a degree of financial stability and disposal income but I consider this a very short term approach. With the recession seeming to actually be a new economy reality rather than the predicted blip or double-dip, more and more of these people will drop into the market for more cost effective brands and pack sizes.

And now getting to the point in this supply chain blog? If companies have local for local factories then fair enough it is likely the flexibility will be built in. However, with most European FMCG multinationals operating regional sourcing units and regional supply chains valuable future growth could be missed. Regional factories and supply chains should be set up to serve growth potential markets as a priority rather than as an afterthought. Big pack sizes may well make machine efficiencies look wonderful and the sku may be very profitable but they are not supporting growth now and companies will be ill equipped if/when the economic gloom lifts.

Tags: SKU, FMCG, Dave Jordan, Supply Chain, CEE, Traditional Trade