INTRODUCTION

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods F.M.C.G. These products are those that get replaced within a year. They
generally include a wide range of frequently purchased consumer products such as toiletries,
soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other
non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. F.M.C.G.
may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.

India’s F.M.C.G. sector is the fourth largest sector in the economy and creates employment
for more wide population in downstream activities. Its principal constituents are Household
Care, Personal Care and Food & Beverages. The total F.M.C.G. market is in excess of Rs.
85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain
a high growth rate. F.M.C.G. This sector mainly affects the Indian Economy and its very
important to give at most importance to this sector and provide solutions to the problem in the
present.

Supply chain is one of the essential part in the FMCG sector because all the products that are
been produced by the industries will have to reach the customers and have to be utilized by
the people. Most of the small scale industries widely use their own transport systems and the
others use different channel partners that are available. Just because they have to travel a long
time to more distance they are been added with a lot of preservatives which affects a lot of
young people and their health. It’s important to have efficient supply chain so that the
addition of preservatives and chemicals can be reduced, which will in turn increase the sales
and will increase the economy of the country.

PROBLEM IDENTIFIED
SUPPLY CHAIN MANAGEMENT

 All the major supply to the stores are been mainly done by private channel partners
which charges a high amount and which will in turn reduces the profit of the company.
 FMCG products are usually highly perishable and they have to handle by giving good
care, the shelf life of the products is very low.
 Supply chain has to be more efficient and faster to avoid spoilage and maximise profit
 The goods have to made sure that they reach the dealers prior in time so that the
products can be distributed to the customers which have more shelf life
 If the supply chain is more effective then the products can be produced with less
preservatives

How does this problem affect the economy?

  If the shelf life is low, people who can afford to buy 2 products will still buy 1 as it
might get wasted or spoiled soon
 The purchasing power of the people will reduce and then the money rotation will
reduce within the country
 There will be less production of products by the industries, so that the raw material
purchase, usage will also be reduced which will affect the whole cycle in the country
 The demand analysis will change very frequently and it will in turn affect the
production.

POSSIBLE SOLUTIONS FOR THIS PROBLEM

 Government can establish cold storage logistics services all over country which can
be used by all the industries and not common people. There are some services
available by government as of now but they can be used by the common people and
not only for industries. This policy can be changed by the government.
 This can include both road and rail systems which has packages as the more the goods
to be transported the more cheaper the price is for the service
 This can be made available on door pickup and delivery, so the system is completely
safe and taken care by the single organisation
 Safety and on time delivery all over the country 24*7 all days of the year should be
implemented as FMCG products are regularly consumed by the population all there
will need for it all through the year.
 All the industries and the industry organisation present in the country should sign in
for the agreements of using this service or else the government my incur loses by
establishing this service

How does this solution improve the economy?

 The purchase by the customers will be high as they can be used for more time so they
just purchase more products at a single time
 Cold storage supply system in the country will improve the MEAT consumption so
the coastal area fishing and then the poultry cultivation will increase, so the
investments in different sector will also increase.
 All the products will be available all over the country so that the industries will
forecast a higher demand for their product and they can get good profits
 Preservatives and other chemicals that are used in the food products to increase the
shelf life can also be reduced in a drastic way which will increases the quality of the
products.

CONCLUSION
When there is a wide availability of the products all over the country the production by all
the industries will also be the maximum, the utilization of the resources and purchasing
by the customers also in