New Delhi, Oct 19: Fast moving consumer goods companies can cut prices and save at least 25 per cent of their production costs by adopting an efficient and consumer-focussed supply chain management system, an industry body said. "A supply chain management, which is based on efficient consumer response, will immensely benefit the major FMCG firms in keeping the production cost low by at least 25 per cent, which in turn will benefit consumers," European Article Number (EAN) India Chief Executive Officer Ravi Mathur told reporters here.
EAN India is a joint initiative of the domestic industry and the commerce ministry to facilitate implementation of supply chain management.
EAN India, a brainchild of FMCG majors like Hindustan Lever, P&G, Godrej, Nestle and Food World, is an affiliate of a global movement in the FMCG industry on supply chain management - efficient consumer response (ECR).
In the Indian context, the FMCG industry could save more than 25 per cent if they adopt the right practices being propogated by the ECR, he said, adding "it will not be an exaggeration to say that 40 per cent of the inventory is not required these days".
In the US and Europe, the industry has the potential to save around 30-33 billion dollars respectively by adopting the right kind of practices in their supply chain management, Mathur said.
Bureau Report