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This paper explores the influence of Supply Chain Management (SCM) on consumers in Pakistan, particularly within the Fast-Moving Consumer Goods (FMCG) industry. It examines the challenges faced by multinational and local FMCG companies, as well as small to medium enterprises. Highlighted issues include ineffective logistics networks, information asymmetry, and stock-outs that lead to product failures. The study underscores the need for improved SCM practices to enhance consumer access to diverse products, affordability, and overall satisfaction in Pakistan's marketplace.
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How the SCM effects the Consumer with Pakistan Perspective International Conference on Logistics & Supply Chain Management (ICLSC 2011) AMIR MUNIR CEI Logistics / DB Schenker
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