The FMCG industry is a unique and challenging one. As it name denotes “Fast Moving”. The idea of :fast moving" means that organisations operating within the industry as manufacturers and distributors employ a more dynamic and agile supply chain systems different from a conventional supply chain approach. However, the need for a more dynamic and agile supply chain within the FMCG industry is ever more crucial due to the ever increasing twists and turns in demand and consumption trends caused by globalisation, widening social media trends, technology, and competitiveness. Fierce competitive business environment means an increasing pressure on an organisation’s net profit. As a result of this, value adding supply chain processes are critical to remaining sustainably competitive. Such processes are Lean focused, and dynamically agile.
FMCG supply side and demand side need proper strategic integration to yield needed competitive outcome that delivers. Since the law of entropy applies, properly integrating the demand and supply side require more than a set-up and forget approach. Rather, lists of scorecards are set up and reviewed periodically to ensure that established systems are still aligned. Better still, changes in the business environment need to be continuously factored in.
However, the relationship amongst strategic partners is never one of a six sigma relationship. Therefore, contingencies should be implemented that ensure that critical organisation targets and goals are not undermined. Establishing such effective control mechanisms calls for seasoned Integrated Business Planning professionals.