FMCG - strategic and operational improvement

For a local retail chain in confectionary and FMCG - strategic and operational improvement
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The client and context:

The client is in the business of sweet and salted confectionary goods and fast moving consumer goods.
The client identified a level of unmet demand in some products and surplus supply in others.
The business was largely based on local tastes and traditions, seasonal festivities, and word of mouth.

The challenges:

Seasonal festivities were difficult to appropriately cope with in terms of economies of scale.
Quick changing habits by the client and introduction of new products without the proper attention to cash cow ones.
The operations of the business were outdated.
Introduction of new products were not done through proper analysis but only with “this tastes good”.
Freight and logistics were known to be very slow in meeting customers demands and limited to covering longer distances.

What we Did:

We evaluated the business’s operations on ground, branch by branch with larger focus on the busiest ones, and assessed per branch strategies by the running manager in relation to the overarching strategy from the executive level.
We assessed the logistical plan of the entire company and per branch, and paths taken by the delivery personnel to customers. 
We laid down the KPIs of successful operations, branches, products, marketing and sales habits, at the same time explored a new set fitting the demography.
We identified critical bottlenecks and unnecessary overheads that were taking vital focus away from key business.
We surveyed customers on the business, products, strengths and weaknesses.
We educated and trained branch managers to fit the overall strategy.

What we achieved:

A significant turnaround in the businesses through an analytical approach rather than trials and errors.
Improved sales for all goods by increasing production and movement on those with high demand and reducing those with newer or less demand.
Revamped the managerial habits of branches to be more customer-centric.
Identified specific periods and schedule for new products’ introduction.
Derived the proper navigational routes and logistics per branch optimizing routes and time to delivery.
Derived a new set of KPIs fitting seasonal changes and local traditions.
Improvement in smart and analytical decision making

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Umang Sahai

Senior Partner, India | Healthcare, Public sector, Government relations

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