Consumer Staples

<h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p class="MsoNormal" style="text-align: justify;">I have extensive experience in supply chain management within the FMCG sector, covering procurement, logistics, and operations. I&rsquo;ve worked with leading FMCG companies, managing complex supply chains, optimizing processes, and ensuring seamless product flow from manufacturing to end consumers. My expertise includes inventory management, demand planning, and implementing technology-driven solutions to enhance efficiency and cost-effectiveness.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q2. What are some efficient strategies to reduce costs without compromising quality or service levels in FMCG Supply chain?</span></h2><p class="MsoNormal" style="text-align: justify;">To reduce costs without compromising quality or service levels in the FMCG supply chain, consider optimizing procurement processes through strategic sourcing, utilizing economies of scale, and renegotiating supplier contracts.</p><p class="MsoNormal" style="text-align: justify;">Implementing lean inventory management and improving demand forecasting accuracy helps minimize excess stock and reduce holding costs.</p><p class="MsoNormal" style="text-align: justify;">Additionally, leveraging technology for better route optimization and warehouse automation can further drive down operational expenses.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q3. Are there recent or planned investments in technology to improve operational efficiency of the FMCG supply chain?</span></h2><p class="MsoNormal" style="text-align: justify;">Recent investments in FMCG supply chains include adopting advanced analytics for demand forecasting, AI-driven inventory management systems, and automation in warehousing and distribution. Companies are also exploring blockchain for traceability and IoT solutions for real-time monitoring of logistics operations. These technologies aim to enhance visibility, reduce lead times, and improve overall supply chain resilience.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q4. How do you align procurement activities with inventory management to avoid overstocking or stockouts?</span></h2><p class="MsoNormal" style="text-align: justify;">Aligning procurement with inventory management requires integrating real-time data on sales and demand forecasts with procurement schedules. This can be achieved through collaborative planning with suppliers, maintaining safety stock levels based on historical data, and using advanced planning systems to dynamically adjust orders. This approach minimizes overstocking and prevents stockouts by ensuring inventory levels are responsive to market demand.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q5. How do you monitor and improve the efficiency of the logistics network in FMCG?</span></h2><p class="MsoNormal" style="text-align: justify;">To monitor and improve the logistics network, key performance indicators (KPIs) such as on-time delivery rates, transportation costs, and warehouse efficiency must be tracked regularly.</p><p class="MsoNormal" style="text-align: justify;">Utilizing Transportation Management Systems (TMS) for route optimization, implementing cross-docking to reduce handling time, and adopting collaborative logistics with third-party providers can significantly enhance the efficiency and cost-effectiveness of the logistics network.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q6. What are the major cost drivers in last-mile logistics, and how are they managed?</span></h2><p class="MsoNormal" style="text-align: justify;">The primary cost drivers in last-mile logistics include fuel expenses, labor costs, and delivery density.</p><p class="MsoNormal" style="text-align: justify;">These costs are managed through route optimization to reduce fuel consumption, leveraging technology for better workforce management, and employing hybrid delivery models like crowdsourcing. Enhancing delivery accuracy and using local fulfilment centers closer to end customers can also help mitigate these costs.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p class="MsoNormal" style="text-align: justify;">If I were an investor, I would ask senior management:</p><p class="MsoNormal" style="text-align: justify;">How are you leveraging technology and innovation to future-proof your supply chain operations and maintain competitive advantage in an evolving market?</p><p class="MsoNormal" style="text-align: justify;">This question assesses their strategic vision, commitment to innovation, and readiness to adapt to industry changes.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p>