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Supply Chain Management in FMCG

 

Is demand driven supply chain in comsumer goods growing?

Created by : Ashish Kumar Mishra, Business Analyst, SAP  | 08 21 2008 00:59:47 +0000
Industry : IT ProductsFunctional Area : Application Software(Technology)
Keywords : Supply Chain Demand Growing Goods Driven COMSUMER
Activity:  140 views;  last activity : 07 06 2010 20:18:09 +0000
Is the growing focus on moving to more demand-driven supply chains likely to drive an increase in the use of Direct Store Delivery (DSD) programs in the Consumer Packaged Goods/Food-to-Retail supply chain?
  
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Well, It could be. Though most estimates say total DSD growth has been relatively flat for many years, there are signs that growth could be rising, as retailers look to reduce operating costs and both retailers and manufacturers seek to become both leaner and more responsive to market demand.
By Ashish Kumar Mishra, Business Analyst, SAP  | 08 21 2008 00:59:47 +0000
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The growth looks apparent, there are several hurdles too. Traditional store practices and constrains can get in the way of maximizing the results from DSD, however. For example, many retailers still limit receiving hours to Monday to Friday in many stores, even as the percent of goods sold on the weekend days continues to increase. The result can limit the ability of the DSD provider to synch with demand, leading to out-of-stocks.
By Radhakrishna Marar, Business Analyst, Oracle  | 08 21 2008 01:02:54 +0000
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