Effective Accounting & Inventory Management for an FMCG companyConsumer Products
They knew that to succeed in this era of technology, their Accounting and Inventory Management systems needed to be much more robust than what they are at present. They turned to Anup N. Amatya & Associates, a professional Business Management and Financial Consultants, to improve their operations. Our effort vastly improved the company’s planning and execution functions.
The biggest challenge was that the FMCG company was not utilizing technology properly in their Accounting and Inventory management functions. Too much of the work was still being recorded manually, which meant that the numbers took a long time to be analyzed.
Live data was also not available and decisions can only be made after all the required data was received. They knew they could corner more of the market if they could be more automated.
The work addressed three critical issues relating to Accounting and Inventory management for the FMCG company
Improve sales and operations
The teams focused their efforts on a few of the highest-value SKUs to review the current planning process, identify gaps in the inventory management and analytically understand demand and supply variability for their FMCG products.
Determine the right inventory level
With hundreds of SKUs, the company needed a proper method to predict and manage their inventory. Using a bespoke inventory management system, the teams defined appropriate inventory levels by mapping actual versus forecast sales for the most important SKUs.
Optimize the supply chain for perfect order planning
The diagnostics determined the critical factors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in products reaching the consumers.
The solution Anup N. Amatya & Associates came up with combined cutting edge technology with real-world practicality. Everyone knew that the systems had to be updated, the real challenge was updating them without negatively disrupting the whole organization.
The solution was to introduce automated inventory management and accounting system while providing mobile platforms such as bar-code scanners for efficient inventory management.
This allowed the FMCG company staff to be involved in the job instead of feeling like they had been made redundant by technology.
The FMCG suppliers’ employees are now more empowered and also has the benefit of generating inventory and accounting reports instantaneously whenever needed. They can now take decisions more rapidly based on the latest real-time data.
The effort vastly improved the company’s planning and execution functions, created and implemented a new inventory policy that accounted for specific SKUs, streamlined the order preparation process and reduced distribution transport times.