Fast Moving Consumer Goods

The challenges of the sector

A changing global market
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The economic crisis, the fall in purchasing power and globalization are having a major impact on the sluggish European market
The big players in e-commerce (Amazon) are becoming unavoidable and market shares are increasing for other players (Ebay, Tesco, Asos, John Levis…)
• Emerging markets (Brazil, China, India) offer opportunities while creating multi-regional complexity
A change in consumption habits
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The customer is no longer loyal to a brand or a single means of consumption : e-commerce, drive, private sales, C2C distribution ... endanger classic/traditional distribution and allow customers to reap the benefits of different distribution channels
• Masters of their consumption, customers place more and more importance on the ethical, environmental and ecological factors but also on the origin, the traceability and the accessibility of the products
A decline in profitability related to ...
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A growing number of competitors and a growing price war between the different brands.
Increasingly expensive transportation due to factors such as new environmental taxes and rising gas prices.
• The development of recycling channels which tends to develop.
Increased production costs that depend on wage pressures and fluctuating raw material costs.
• Pressure from the public authorities to repair and reduce obsolescence and control of stocks and WCR in line with an increased requirement for responsiveness.

Your problems and our solutions

  • The variability of demand and the increasing demand of customers for new services as well as the sometimes very promotional and weather-sensitive market are complicating the demand.

    The S&OP will allow:

    • Frame and better control the complexity of the demand by including the various sectors of the company (Purchasing, Supply Chain, Marketing, Sales …)
    • Adapt a successful service policy in line with customer expectations and adapted to the different sales channels, and which optimizes the EBITDA of the product families
  • Synchronization throughout the entire chain, even in the short cycle, leads to the need to optimize logistics flows and the BFR.

    • Optimize inventory, transportation and quality of service with the Supply Chain network design.
    • Pilot and optimize upstream, interco and downstream transport via the Transport offer , and the implementation of a TMS (Transport Management System)
    • Determine the products and inventory levels that would be advisable to have on a given location and the right level of inventory and thus limit losses with inventory optimization
  • The need for optimization of production capacities in relation to demand and planning in very short operational cycles makes the efficiency of production imperative.

    Allow for the maximization of production with the Performance of industrial operations offer

  • The diversification of the offer and the visibility of its launches are parameters to be taken into account to fully satisfy the customer.

    • Working on optimizing the range will make it profitable, thanks to comprehensive cost analysis tools
    • Take into account the expectations of the consumer, make the decisions on the different families of products and define the action plans necessary to respond to them via the S&OP process and the implementation of an APS (Advanced Planning System) and DRP
  • Open to market developments, take into account local and cultural specificities and counter the weight of distributors is possible through a flexible and personalized approach.

    The Change management will help support the company in front of the multitude of organizational changes that will take place at all levels in the years to come.

Some references of the sector

Shiseido

Seb

L’Oréal

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Antoine Bernard

Fast Moving Consumer Goods expert

Managing partner of the firm, Antoine Bernard specializes in Supply Chain operations management and intervenes in many sectors such as Mass retail and specialized retail. He notably worked with L’Oréal and Seb.

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