scholarly journals A distribution network design for fast-moving consumer goods

2021 ◽  
Vol 39 (4) ◽  
pp. 1050-1057
Author(s):  
O.S. Okunade ◽  
S.A. Daodu

A distribution network design of fast-moving consumer goods ensures distribution of products in an effective manner by giving  maximum customers’ satisfaction and minimum distribution cost. The study evaluates the distribution through direct shipment and the use of intermediate shipment for distribution of products from plant to depots. A real-life case study in Southwestern Nigeria was defined and solved as a linear programming model to minimise total cost of distribution from plant to the depots with consideration of four routing options. The results show that distribution through intermediaries gives a better solution than routing option with  direct shipment. The best routing option with intermediate points when compared with the routing option with direct shipment gives a savings of 1,819,490.00 Naira which translates to 13.46% cost savings. The study shows that the location of intermediaries is a key decision in distribution network design and that the intermediaries add value to the distribution networks in supply chain. Keywords: Distribution network; Supply chain design; Fast-moving consumer goods; Linear programming

Author(s):  
Madhu Bala ◽  
Dinesh Kumar

This research paper identifies the supply chain performance attributes that are relevant to the Fast Moving Consumer Goods (FMCG) industry. The FMCG supply chains are analysed from the perspective of processes, components and typology. The typical issues faced by the FMCG supply chains are also explored. Three supply chain operational models are compared and identify SCOR as the one best suited for the FMCG industry. The survey, conducted with the respondents from four research cases across two product categories, demonstrates the acceptance and the usage of the performance attributes for the FMCG supply chains. The results also include the analysis of the typology of the research cases across two product categories.


2017 ◽  
Vol 10 (6) ◽  
pp. 19
Author(s):  
Anthony Vaz ◽  
Shaheen Mansori

In a bid to maximize corporate profits, many multi-national corporations and even small medium enterprises create many products and place them on shelves at hypermarkets or supermarkets. We can observe an abundance of stock keeping units on shelves as well as observe a variety of such finished goods held by various fast moving consumer goods industries in the home appliance, beverage, canned food, clothes, soft-drinks, cordials and  confectionery product ranges, just to name a few. From supplier, manufacturer, distributor, wholesaler and retailer, it appears that there is a constant flow of new products and stock keeping units held for these fast moving consumer goods. We can say that we humans are a rather wasteful species because a large proportion of products become obsolete or slow moving over time and organizations push products into the marketplace to gain competitive advantage and optimize profits. Hence, there is need to address this issue in the field of Supply Chain Management because resources on this planet are limited and we humans live in a very fragile planet. Yet, as population grows, we humans have become used to this over-abundance even though the resources within this planet are becoming more and more scarce. Consumption levels have increased with population growth and with capitalist thinking, virtually anybody can develop businesses that will create products to meet human needs. In the field of Supply Chain Management, managers set polices on when to order and how much to order and the average inventory that results from these inventory replenishment policies become targets. This paper attempts to compare target days of inventory with actual days of inventory held in warehouses for a single organization with many warehouses/ stock keeping units, in an attempt to understand further approaches that can be used to improve inventory waste within supply chains.


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