FMCG Supply Chain Excellence

A Practical Guide

Why FMCG Supply Chains Are Different

  • FMCG businesses operate in a high-volume, low-margin environment where execution quality matters.

  • Stock-outs can impact sales immediately.

  • Excess inventory destroys cashflow.

  • Poor forecasting increases working capital requirements.

  • Customer service failures can damage commercial relationships.

The Five Drivers of FMCG Supply Chain Performance

  1. Forecast Accuracy

    Better forecasting improves inventory investment decisions.

  2. Inventory Health

    Balancing availability with working capital efficiency.

  3. Service Levels

    Maintaining customer satisfaction without excessive inventory.

  4. Distribution Efficiency

    Reducing unnecessary handling and transportation costs.

  5. Data Visibility

    Creating transparency across the supply chain.

Key Questions Every FMCG Business Should Ask

  1. Do we have the right inventory?

  2. Do we have it in the right location?

  3. Can we predict demand accurately?

  4. Are we carrying unnecessary stock?

  5. Are we measuring service appropriately?

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