Project title: Estimating the length of a Supply Chain for FMCG Company

OBJECTIVE OF THE STUDY:

Estimate of the length of the supply chain of two competing brands Estimate of average time stock would spend in the retail shop.

SCOPE OF THE STUDY:Two organized and two unorganized retailers are considered for the study.

Organized Unorganized Place7to9 Das pan Shop Chandmari ,GandhibastiGayatri Kalita Shop Chandmari, Gandhibasti

SELECTION OF PRODUCT MIXES:

The product mix of Britannia and Nezone is considered for the study.Selected Product Mix Britannia NezoneBritannia Marie Nezone MarieBritannia Cashew Nezone cashewBritannia 50-50 Nezone 50-50

METHODOLOGY:

Estimate of the length of the supply chain of two competing brands

Average Time stock would spend at retailer from the time of study:

= (Stock/sales)/2

Estimation of Chain length

Manufacturing Date

Time at which the study is done

Estimated time of sale

A B

Supply Chain length:

Item Stock(Unit)

Qnty. ordered/week

Sale/month Mfd A B A+B

STORE: GayatriBritanniaMarie 15 50 200 01/12/10 2 0.0375 2.0375Cashew 5 30 130 01/12/10 2 0.019231 2.01923150-50 4 10 50 01/12/10 2 0.04 2.04NezoneMarie 8 20 60 01/01/11 1 0.066667 1.066667Cashew 5 25 100 01/01/11 1 0.025 1.02550-50 5 10 30 01/01/11 1 0.083333 1.083333STORE: 7to9BritanniaMarie 27 100 400 01/12/10 2 0.03375 2.03375Cashew 15 100 500 01/12/10 2 0.015 2.01550-50 2 15 60 01/12/10 2 0.016667 2.016667NezoneMarie 13 30 100 01/01/11 1 0.065 1.065Cashew 7 50 200 01/01/11 1 0.0175 1.017550-50 0 10 50 01/01/11 1 0 1STORE:Das ShopBritanniaMarie 7 10 50 01/12/10 2 0.07 2.07Cashew 5 20 100 01/12/10 2 0.025 2.02550-50 2 5 20 01/12/10 2 0.05 2.05NezoneMarie 1 5 20 01/01/11 1 0.025 1.025Cashew 3 10 50 01/01/11 1 0.03 1.0350-50 1 3 10 01/01/11 1 0.05 1.05STORE: Kalita shopBritanniaMarie 5 10 50 01/11/10 3 0.05 3.05Cashew 4 15 70 01/11/10 3 0.028571 3.02857150-50 0 5 15 01/11/10 3 0 3NezoneMarie 2 5 30 01/01/11 1 0.033333 1.033333Cashew 3 10 50 01/01/11 1 0.03 1.0350-50 2 2 10 01/01/11 1 0.1 1.1

KEY ASSUMPTION:

The month of manufacturing is printed on the pack instead of the date, therefore the first day of that particular month is considered as the date of manufacturing.

INTERPRETATION:

The Chain length of Nezone is shorter than Britannia as it is a local brand.

The retailers store Cashew biscuit in higher quantity of, both the brands viz. Britannia and Nezone, as this is highly liquid product category.

The supply chain largely depends on the sale of the products. We can see that 7to9 is having high monthly sales figure in comparison to other shops. Therefore 7to9 is having the shortest supply chain length.

The reason behind the longest Supply chain length in case of Kalita Shop is that they buy stocks from the wholesaler, and stocks were back dated.