Establishing a supply chain function gets stock under control

Our client, an international FMCG company operating in the Russian Federation, was losing sales and seeing profits drop due to an inability to effectively manage stock. Stock levels were unacceptably high, partly because customs clearance was taking up to 14 days. Meanwhile, unhappy customers were switching to competitor products to fill the gaps.

Our challenge

The lack of robust systems and professionalism within the existing purchasing department showed a clear need for change.

What we did

For the first time, the business recruited a professional supply chain manager to run the reorganised department.

Next, a supply chain management department was created combining purchasing, customer service, logistics and stock keeping. New software tools were introduced to better manage the information flow.

Weekly meetings were set up to coordinate all sales forecasts, purchasing, stock and production plans, and a system for monitoring forecast accuracy was put in place.

Finally, a professional customs clearance expert was appointed and the customs department was reorganised.

The outcome

During the first six months inventory levels were reduced by over €1 million and customs clearance was reduced from fourteen days to just two.

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