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Optimizing Supply Chain for an FMCG Company (FMCG sector)

  • Ray
  • Feb 27
  • 1 min read

Problem Statement:

A large FMCG company struggled with inefficiencies in its supply chain, including inaccurate demand forecasting, delayed shipments, and inventory mismanagement. These challenges led to stock shortages, excessive warehousing costs, and missed sales opportunities, affecting relationships with retailers and distributors.


representing a workflow of FMCG sector

Solution:

Nimble Technologies implemented a supply chain optimization system to enhance efficiency and visibility:

  1. Initial Analysis:

    • Conducted a comprehensive review of the supply chain process, identifying bottlenecks and redundant activities.

    • Mapped inventory levels, supplier performance, and delivery timelines across all distribution centers.

  2. Team Composition:

    • Engaged two data analysts, a supply chain specialist, and two software engineers.

  3. Demand Forecasting:

    • Developed an AI-driven forecasting model using historical sales data, market trends, and seasonal factors.

    • Integrated external data sources such as weather patterns and economic indicators to improve accuracy.

  4. Inventory Optimization:

    • Implemented an automated inventory management system to maintain optimal stock levels.

    • Introduced just-in-time (JIT) replenishment processes to reduce excess stock.

  5. Supply Chain Visibility:

    • Built a real-time tracking system for shipments, providing transparency from supplier to retailer.

    • Added predictive analytics to identify potential delays and suggest proactive solutions.

  6. Training and Change Management:

    • Trained staff across procurement, logistics, and distribution to use the new system effectively.

    • Provided continuous support to ensure adoption and address challenges.


Outcome:

The supply chain optimization system produced measurable improvements:

  • Efficiency: Reduced order-to-delivery time by 20%, enabling faster restocking for retailers.

  • Cost Savings: Lowered warehousing costs by 30%, saving $2M annually.

  • Accuracy: Improved forecasting accuracy to 95%, minimizing stock shortages and overages.


Client Testimonial:

"Nimble’s expertise has revolutionized our supply chain. With real-time insights and accurate forecasts, we’re now operating at peak efficiency and meeting retailer demands consistently."

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