Supply Chain Blog

Is this the most perfect FMCG or Pharma or Drinks Supply Chain ever?

Posted by Dave Jordan on Tue, Apr 01, 2014

I will not reveal the name of the organisation for obvious reasons but their Supply Chain is one very impressive, slick machine. Across the Source, Plan, Make and Deliver Supply Chain disciplines we can see excellence and leading edge systems and performance.

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Source

Raw and packaging materials are bought at very competitive prices yet with equally favourable payment terms. Lead times are optimised and stock is on consignment. Supplier collaboration is a key part of the business.

Plan

S&OP is alive and kicking and visibly led from the top table. Demand and supply is finely balanced and forecast accuracy at sku (not brand) level is a minimum of 95%. Every aspect of planning is done in the ERP without a spreadsheet in sight. Stock levels are set using rolling 2-year historical data along with the weekly updated activity plans from Sales & Marketing colleagues. No month-end Sales target push!

Make

Output reliability is close to 100%. Manufacturing costs are the lowest amongst the peer group of similar companies. Production line efficiency is well above the manufacturer name-plate specification. There is zero waste and rework and this new factory follows the principles of the Japanese Institute of Plant Maintenance.

Deliver

The relationship with the 3PLP is very close and proactive. Stocks at Distributors are maintained via a replenishment system. There is no overstocking or write offs. A Route To Market assessment has been carried out and all distributors are proactive partners. Customer service levels are over 99% for all customers.

Overall Supply Chain efficiency is monitored through a short list of highly relevant and stretching KPI targets. The Supply Chain team is highly motivated and valued by colleagues. Who wouldn’t like to work in this company? What an organisation!

...but remember Always Place Revealing Information Last – Find Our Other Laughs

Tagss: Customer service, Brewing & Beverages, Route to Market, Dave Jordan, Humour, KPI, S&OP, Logistics Management, Inventory Management & Stock Control