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Supply Chain Network Re-Design: FMC Biscuits
Supply Chain Network Re-Design: FMC Biscuits
FMCB
SUBCONTRAC
TING DEPO TRADITIONAL RETAIL
TS
Subcontracted most of the Plants and depots are divided India into Large and traditional retail outlets act as
production to 45 plants 4 regions- East, West, North and South point of sale.
Plants are fully dedicated to FMCB 8 mother depots supplies SKUs to both Biscuits are categorized into cream and
Products are transported to depots wholesale/retail facilities and other non-cream.
through trucks. depots Salespersons visit traditional stores
Capacity utilization depends on no. 58 small depots spread all over India every day and collect SKU wise orders
of SKUs Majority of SKUs transported from for next day
260 SKUs are grouped into 31 Pack plants to depots of the same region. Brand level sales figures are less
types and 36 brands Sales forecast is done at brand level at fluctuating
Plants have several product lines the depot Brands having strong presence in all
that can manufacture at a fixed These forecast are key input for Plants regions are designated as National
1 2 ASSESSING CURRENT PERFORMANCE 3 4 5
BUSINESS STRATEGY Alignment of Supply Chain Network with overall Business Strategy
Expectations of Consumers
CUSTOMER/STAKEHOLDE Stock Outs : How the suppliers and distributors be impacted by the product stockouts?
RS EXPECTATIONS Inventory Levels : the optimum inventory levels and the maximum safety stock capacity?
Demand Fluctuations (Bull-Whip Effect): The fluctuations of demand and its severity?
New Markets: What could be the possible new markets that are present that we can access (Short term vs Long Term)
B2B Business: What are the new industrial or bulk purchasing options available requiring different networks (Short term vs
Long Term)
Direct Retail: The ability and additional cost and financial requirements of the factories to directly serve the retail outlets
and not through distributors
Competitors: How and to what extent the competitors have penetrated the market alongwith analyzing their supply chain
strategies
Collaborators: How and in what way are the collaborators helping FMCB to make the product readily available to the
customers
Responsiveness: How responsive is our supply network design to meet the fluctuating SKU level demand maintaining
product variety and freshness
Implementation: What are the constraints in implementing the new supply chain network such proposed incorporating risk
mitigation
1 2 E 3 VALUATION
4 OF ALTERNATIVE DESIGN 5
OBJECTI
VES
DECISION VARIABLES
1 2 3 4 5 Network Design Tools