Development of performance matrix for supply chain in FMCG industry

Abstract

In this highly competitive environment, for any company, the Supply Chain forms the backbone of its performance. Goods are produced in the factory but for them to reach the end customers efficient supply chain is of prime importance. Supply chain management helps companies optimize their performance and help them achieve higher operating income, low operational costs and high asset utilization, which in turn helps in gaining competitive advantage. To sustain its competitive advantage companies must do self-assessment on regular basis against the existing performance drivers and make an effort for continuous improvement with the aid of supply chain performance measures. Supply Chain performance measurement provides information which can be used to assess whether its supply chain has improved or needs improvement. The financial metrics such as Return on Assets (ROA), Inventory Turns and Revenue Growth etc. can be used to assess the performance level. Once the performance is measured the key performance drivers leading to this performance level are to be identified. The company can set benchmarks for those performance drivers and monitor them on a periodic basis to build an efficient supply chain. Through regular assessment and feedbacks, companies can identify the issues and address them accordingly. Through this project we intended to study the various supply chain parameters of FMCG companies and identify the key observations and trends.