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In any FMCG organization specially country like India company mainly focused on festive occasion. Like special festive pack for Diwali , Rakhi , Christmas & EID etc. To deliver the materials on time to ensure it went to retailer place with proper timing is important. To escalate the same materials need to plan well in advance. Its mainly 2 - 3 days sales so long before retailer or distributor will not invest money for the same. After the occasion day the value of the product is Zero ( 0 ) So in the scenario what to do ?  The solution is simple, you need to have a track. 1. Send the materials to a particular space 2. Track the materials on daily basis about the movement. 3 Demand forecasting for the same might not be affective so tracking on every day basis reqd. 4. As the day approaching and materials not getting sold as expected start price discount & other sales promotion. 5. After the occasion day materials need to get lifted and a strong reverse logistic should work. 6....

Warehouse pallet can double your warehouse space, How ? I am not stating about some racking space . My blog is not sponsored and I am not stating any name but with the same the warehouse space can be doubled and its available in the market. The warehouse might be not a huge height or racking is also a costly issue, so the solutions is there. The attached pic is for ref how can the space be utilized On the ground floor of the specialized pallet the materials can be kept and on 1st phase another set of materials can be placed. The following is available in the mkt, only you need to buy a stacker. Here in a normal height warehouse of 10 ft also full height utilization is possible.  Think differently only. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) More than 10 + years’ experience in FMCG Supply Chain CII Certified Supply Chain Management Professional MBA Marketing & Finance from Future Business School Post...

The present status like emergency situation like COVID 19, I my self work in FMCG , and we are running the show still its a lock down. The lock down is a situation where the options are less like less transportation, 3PL etc, so how the show can run ? Its simple a strategy, but need to implemented before the lock down started pre planning . 1. Trained some manpower beforehand who are mainly localities 2. Some residential manpower need to keep. 3. Setup of operation via web so that can be controlled from anywhere, physical present is not necessary. 4. Distribute the distribution from a single warehouse to multiple location, as lock down might not be same for all place at the same time. 5. Keep some sets of transporter and vehicle need to be dedicated and vehicle at warehouse & factory end. 6. Choose some 3PL provider who run business on there own vehicle not dependent on market. 7. Choose different methods at same time like Direct Shipping, Shipping through Milk Run, Shipping throug...

The lead time is a very interesting topic. Lead time mainly state about the time reqd to dispatch materials from one place to another. To make customer satisfy the following need to make a standardize . For Ex :-  From place A to B normal transit time reqd of 5 days , but org got some new transporter where the lead time reduces to 3 days, on 1st instance customer become delightful but need to maintain the standards. If on 2nd instance if the vehicle is not available from the express service, customer will be annoyed and will start complaining.  Always remember its important to retain customer than finding a new one. A standard time sets in the mind of the customer, before changing a transporter always check his capability. On a single instance cannot be a example, on a new transporter always want to grab opportunity, study the normal lead time , make a note on route map , if the instance is possible on every sequence then only opt for the same otherwise stick to basic. Sumit C...

Less truck load is also a value savings.  The question is how ?  Take for a example, direct small vehicle ( 20 ft ) is not available for a particular destination. The place may be remote.  We can send vai  Ftl to a certain distance and make a transshipment. It might happen 1 Ftl ( 32 Ft ) High Q might not get fit in 2 20 Ft vehicle so chance of leftover material remain. Another situation might be weight issues. It might happen a Single Excel is less costly than a Multi Excel. If the product has some specific stack height then chance of product damage increase for full truck load scenario.  Excess stockings of material might be a scenario. Return on investment might get effected due to over stocking. Its mainly a calculation need to done.  On the above mentioned scenario little less is much valuable than Economic of scale concept.  Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) More...

In our daily scenario of Indian context , dispatch we run after space to cater exact order to the customer. For Ex :- After receiving the order we assume a container space, if the order is more as per container space, order get cut or if the space remains it’s a loss.  Every container size is different and exact excel calculation will not 100%. If need to wait for container vehicle to come its waste of Time. Time = Money. On general sense. If the order is low Ask sales person to increase the order to maximize vehicle space utilization A full packed vehicle reduce damage chance. If the order value is high Materials get billed as per space only, in any ways more than 100 % loading not possible. On the following scenario I had found a solution up to a certain extend it can get managed. 1.No Need to run after sales 2. No need to pressure sales to increase order 3 Force Selling increase market return as % of expiry increase 4...

In a large warehouse like FMCG with many SKU to handle, always there is a chance of alter dispatch, if the outer cartoon is same, some writing on the outer car might be impossible as the materials getting handled by ground level workers Unable to read ( Educational qualification ) Lack of training Lack of Lighting facility In case of multi point dispatch driver & helper unable to identify. Negligence etc Bar code & Scanner will cost more What’s might be the solution Educated worker will cost more or unable to do loading & Unloading activities Proper and repeated training will cost more Proper lighting will cost more What’s the outcome Wrong stock might get delivered Extra cost for reverse logistics Dissatisfied customer & effect in ROI ( Return on Investment ) What’s the solution The only and prominent solution is to change the colour of the outer cartoon as per SKU, For Ex :- If it’s a Orange flavor ...

Export Formalities people came to know about some big jargon's like INCOTERMS, BILL OF LADING etc. In any small / big organization a department is there who mainly work in the export formalities. The question is it so big and tough? The short and simple answer is No. The next question will be what’s next, who will be responsible. All you need to outsource of the same on which the organization did not reqd a single manpower or department. I am not stating any clearing agent, the entire work from sample depositing to lab for checking result  to load container from warehouse. Yes its correct, available ( As it’s a public platform, and my blog is not sponsored ) I am not writing any name, but such type of organization can get easily found, and they are globally reputed enough to handle the end to end operation. No Need to go to any government office No Need to go to any embassy No need to take any headache of paper work Savings of manpower All y...

The organization using container knows the pain to load a container . For Ex a 32 ft container to load with full space utilization is a manpower involving and time. Any wrong loading & unloading of materials leading to damage, as its beyond human height some inside tools reqd to load full container. Then what’s the solution Why need to load a container from back side only, if there is any fixed route just to design a vehicle in such a way where materials can get loaded side wise with pallet. Only a division in between reqd, For Ex if a pallet with materials height is 5 ft, then reqd a 10 ft container. A partition in between where your fork lift can easily load and unload without any headache. Thinks to remember Customized container Pallets need to get return Fork lift available on both end Sufficient loading and unloading bay Savings Manpower Time to load and unload No reqd for palatalized and de palatalized Sumit Chatterjee Sen...

The world is behind cost reduction, for any organization freight cost reduction is a challenge. The stereo type thinking is Search New Transporter Negotiating with the transporter Just think from a transporter point of view , with the competitive market the transporter is also doing business So thinks some point and apply  :-  Had a discussion with the transporter and assure him that you are the single vendor Don’t negotiate with rate, just make a friendly relation Make the concern part of your team Make sure the payment do not get delayed Ask him to get best rate the concern do not need to keep large margin, make a system payment will be be made as soon the materials get safely delivered, give stress on scan POD Don’t concentrate on transportation agreement clause Don’t concentrate on credit period Benefit:- Vendor become loyal Vendor will not search for other alternatives Vendor get develop and you will get good service. ...

As a organization freight cost increasing it’s a concern and the stereotypes are Fuel price escalation Driver salary increase Maintainace cost escalating No the above mention factor might not be the reason Factors affecting freight cost increase Geographical location :- For Ex If you are manufacturing at Kerala India and your main market is Jammu & Kashmir India , the position of the factory is wrong, need to concentrate on the same Product Weight :- Due to market competition if your product weight is getting reduced , your per kg transportation rate will increase. Packing size :- Concentrate on your pack size , if its bulky taking more space so less value materials can get travelled Product Margin :- It might be the scenario that some extra freight cost is there but as per profit margin it can be maintained. Freight Analysis :- Keep an eye on freight bill, if you are paying per km ( Up & Down ) or a fixed rate...

It’s a interesting concept, as we all know about the part load, where is beneficial for any business if the same can be in a organized way. Lets take a example, One of our customer is situated at Delhi, A FTL ( Full Truck Load) = 5 lac value of materials 20 ft container. So if the order getting dispatch on customer point 5 lac product getting stuck, he need to sell the same and after getting money next order will took place, My question is Why ? Another aspect Freshness of the materials also get compromised, as the stock might be get stuck and cost of reverse logistics will occur. So take a new ways Ask the sales team to deposit what reqd The billing can be done as per order. After billing part load logistic provider can be informed They will took the materials by themselves after counting , no chance of short dispatch. If the same can be dispatch in organized way mainly daily on a gap of 4 -5 days ( from 1 st consignment ) customer wil...

As the topic suggest a redistribution of the goods is beneficial for the organization. Here I am not stating any primary or secondary billing, but to reduce expiry cost. What’s will be the scenario ? Lets took a example , A materials got billed and has been send to Mumbai super stockiest point depend on some demand projection, but its market and you never know what might affect the market sales demand, so don’t curse on Demand planning or data, Think in other ways of a holistic approach. ( As it’s a public platform, and my blog is not sponsored ) I am not writing any name. But in transportation market PTL transporter is easily available. Just coordinate among the sales team , the product might get sold to Guwahati ( For Ex ) so just need to coordinate among the customer point. Materials will get lifted from Mumbai and will be delivered to Guwahati. Benefits :- Damage Expiry cost reduction ROI of the customer not getting hampered. Product didn’t get wa...

Warehouse why its reqd ? Bulk Breaking Uncertain high in sales forecast Stock reqd in case of emergency But Why Only reqd is proper planning. Lets take a example Small amount of materials reqd Answer :- PTL service is there Need to distribute to large no of retailers Answer :- B to B service provider is there Seasonal Product Answer :- Make good Super stockiest who can lift the materials Uncertain Sales Answer :- Look after the competitor , or wrong planning, if monopoly customer need to wait. Bulk Breaking   Answer :- Transporter warehouse ids there. Need to store for few days Answer :- Give detention, materials at vehicle only I am not against warehousing concept, nurture all alternative before indulging one Warehouse can lead to FIFO mismatch Extra rental cost Extra manpower cost Theft / pilferage Handling inefficiency leading to product damage Extra insurance coverage Electricity, local issue, ...

The challenges in every day life of logistics dept is to reduction of freight cost. So the homework need to be done on How ? Lets took   example If it’s a daily route somewhat near to warehouse its better to use own or dedicated vehicle Good Service 24*7 availability Proper coordination If there is some return goods can be managed on same freight Points known so less chance in delay Only thing need to consider if paying on per km , need to calculate on variables ( Fuel Price Escalation , Maintenance etc ) But on the same scenario If it’s a far of place & frequency is less Up Down costing will be more Long distance time coordination will be a issue Frequency is less so liability will also be less. On any scenario need to calculate, but always if the service is own its better but on serviceability point not on cost always . Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies...

What’s is mainly vendor development? Is it’s a science or arts The answer will be arts ?   something new always need to inculcate among the new vendor Vendor selection mainly depends not based on his past performance but his skill. Vendor must not be big enough loyalty reduced. Vendor must have his own skill, but did not depend on others Vendor must be nearby for any emergency its better. Vendor its better if local as the service & time get reduced. Vendor Development To develop a vendor Keep the vendor your part of the team Love the vendor not try to negotiate Share the pain & agony Keep him as a part of the concern. If reqd help the vendor ( Financially / Technically ) Don’t give stress on contract , be wise . Vendor development is a long term process, give time, keep patience in the long run benefits will come. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies ...

In any sought of transportation healthy environment is important, mainly in case of Road transportation, the whole ball game mainly depend on the driver only. The life of the driver is very tough, the person has to move long distance ( Day /Night ), every one in hurry . The person has to receive ph call, no proper sleeping/ bathing/ eating. The job specification might be that, but at least on last mile & 1 st file we can do something. Give a proper place for driver to rest at the time of loading & unloading. Some food & water packets for the journey . At least offer some water & sitting place if other option not available. Be polite , listen some feeling of the concern. Don’t make him wait , he also might be in hurry. Make a health checkup for the concern because your entire materials on his hand. Thinks to remember 1.        The concern his doing a job which is beneficial...