AMIR MUNIRCEI Logistics / DB Schenker

How the SCM effects the Consumer with Pakistan Perspective

International Conference on Logistics & Supply Chain Management

(ICLSC 2011)(ICLSC 2011)

Definition – Supply Chain Management

Introduction

SCM in the FMCG Industry Multi-National Corporations Local FMCG Companies Small to Medium FMCG Companies

FMCG Industry at Pakistan

Room for Improvement in Distribution Networks

Multi-National Corporations Local FMCG Companies

SCM in the FMCG Industry at Pakistan

Medium to small FMCG Companies

Lack of SCM Experience / Setup

Flaws in the Distribution Network

Flaws in SCM in the Local Small to Medium FMCG Companies at Pakistan

Medium to small FMCG Companies Complexities associated with SCM:

Involvement of Multiple Agents Information Asymmetry Unable to Implement distribution

strategies

Flaws in SCM in the Local Small to Medium FMCG Companies at Pakistan

Complexities associated with SCM: Poor Utilization of Inventory Assets Distortion of Information Stock-outs

Flaws in SCM in the Local Small to Medium FMCG Companies at Pakistan

Reasons for ineffective SCM: Lack of Information Systems / Data

from Retailers / Distributors Inaccurate Demand Forecasting

resulting in short Inventory ….. Resulting in Product failure.

Flaws in SCM in the Local Small to Medium FMCG Companies at Pakistan

Lack of variety of goods Access to new innovative local products Higher prices Monopoly by MNC FMCG companies Not able to buy, what they want

What the Consumer Gets

THANK YOU