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 Place

7to9 Das pan Shop Chandmari ,Gandhibasti
Gayatri Kalita Shop Chandmari, Gandhibasti

SELECTION OF PRODUCT MIXES:

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

METHODOLOGY:

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

Estimation of
Chain length

A B

Manufacturing Time at which the Estimated time of

Date study is done sale

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

= (Stock/sales)/2
Supply Chain length:

Item Stock Qnty. Sale/month Mfd A B A+B

(Unit) ordered/wee
k
STORE: Gayatri
Britannia
Marie 15 50 200 01/12/10 2 0.0375 2.0375
Cashew 5 30 130 01/12/10 2 0.019231 2.019231
50-50 4 10 50 01/12/10 2 0.04 2.04
Nezone
Marie 8 20 60 01/01/11 1 0.066667 1.066667
Cashew 5 25 100 01/01/11 1 0.025 1.025
50-50 5 10 30 01/01/11 1 0.083333 1.083333
STORE: 7to9
Britannia
Marie 27 100 400 01/12/10 2 0.03375 2.03375
Cashew 15 100 500 01/12/10 2 0.015 2.015
50-50 2 15 60 01/12/10 2 0.016667 2.016667
Nezone
Marie 13 30 100 01/01/11 1 0.065 1.065
Cashew 7 50 200 01/01/11 1 0.0175 1.0175
50-50 0 10 50 01/01/11 1 0 1
STORE:
Das Shop
Britannia
Marie 7 10 50 01/12/10 2 0.07 2.07
Cashew 5 20 100 01/12/10 2 0.025 2.025
50-50 2 5 20 01/12/10 2 0.05 2.05
Nezone
Marie 1 5 20 01/01/11 1 0.025 1.025
Cashew 3 10 50 01/01/11 1 0.03 1.03
50-50 1 3 10 01/01/11 1 0.05 1.05
STORE: Kalita shop
Britannia
Marie 5 10 50 01/11/10 3 0.05 3.05
Cashew 4 15 70 01/11/10 3 0.028571 3.028571
50-50 0 5 15 01/11/10 3 0 3
Nezone
Marie 2 5 30 01/01/11 1 0.033333 1.033333
Cashew 3 10 50 01/01/11 1 0.03 1.03
50-50 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.