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Route to Market & Supply Chain Blog

Is this a perfect FMCG Supply Chain?

Posted by Dave Jordan on Thu, Apr 01, 2021

I cannot reveal the name of this specific organisation for obvious reasons but their Supply Chain is one very impressive, slick machine. Across the Source, Plan, Make and Deliver SCOR Supply Chain disciplines we see excellence, leading edge systems and outstanding performance from a mutually supportive and cohesive team.

sc-april-fool-in-postSource:  Raw and packaging materials are bought at competitive prices yet with equally favourable delivery and payment terms. Lead times are optimal and stock is on consignment. Supplier collaboration and proactive certification is a key part of the reliable business relationship.

Plan:  S&OP is alive and kicking and visibly led by the CEO at the top table. Demand and supply are finely balanced and forecast accuracy at SKU (not brand) level is a minimum of 95%. Every aspect of planning is done in the new ERP without a spreadsheet in sight. Stock levels are set using rolling 2-years historical data along with the 6 month rolling activity plans from Sales & Marketing colleagues. No month-end Sales target bonus push!

Make:  Output reliability is close to 100%. Manufacturing costs are the lowest amongst the peer group of similar sized companies. Production line overall equipment efficiency is well above the manufacturer’s name-plate specification. There are no LTAs, zero waste and rework and this new factory follows the principles of the Japanese Institute of Plant Maintenance.

Deliver:  The relationship with the professional 3PLP is very close and proactive. Stocks at distributors are maintained via a producer replenishment system resulting in no overstocking or write offs. A Route To Market assessment has been carried out and all distributors are treated as trusted, proactive partners. Customer service levels are over 99% for all clients and customers, always.

Extended Supply Chain performance is monitored through a concise list of highly relevant and stretching KPI targets. The Supply Chain team is highly motivated and valued by colleagues across the business, especially Sales.

Who wouldn’t like to work in this company? What an organisation!

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


Tags: Humour, Supply Chain, S&OP, 3PL, RTM

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