Enhancing Profitability Through Efficient Supply Chain Management in Fast Moving Consumer Goods Industry in India

Abstract

Supply chain Management (SCM) is a new concept involving the integration of all the value–creating elements in supply, manufacturing and distribution processes. Supply chain management is a function which encompasses clear accountability and responsibility for deliverables starting from customer’s customer to supplier’s supplier. It translates customer’s customer requirement and links through till vendor’s vendor. The concept of SCM is getting rooted in industry. However, during the past ten years, there has been an increased focus on SCM as competitive weapon due to the significant effects that supply chain activities have on all elements of an organizations financial performance, including operating costs, revenue growth and asset management. It has great implication on profitability of an organisation. The profitability can be improved through efficient supply chain management in organisation. The purpose of this paper is to explore the learning on enhancing profitability through efficient supply chain management in Fast Moving Consumer Goods Industry in Indian context. A survey is conducted to understand impact of supply chain performance parameters on organisational profitability in FMCG sector in Maharashtra region in India. As Supply chain is emerged out as custodian of wealth in the organisation which is clearly sounded during the study. Understanding of Key deliverables with focused approach, fixing right talents in supply chain and motivating them for results compliments in achieving KPIs which adds on profitability.