Factors impacting the efficiency of the distribution of finished goods to multiple customers at a fast-moving consumer goods company
Malema, Mmatholo Blantina
Today, an organisation’s successful operations and bottom line is impacted by logistics management. Effectively organized logistics can help reduce costs and time spent to move products from one point to another. According to KPMG (2016) FMCG is characterised by companies that supply low-cost products that are in constant high demand. These products include food, beverages, personal hygiene and household cleaning utensils (KPMG, 2016). Due to complexity and customer requirements in the FMCG industry, the final part of transporting goods to customers is a very inefficient and highly expensive part of logistics. FMCG companies, thus, face high transport costs and inefficiencies in the distribution of finished goods to customers. The aim of this research was to identify the factors impacting the efficiency of the distribution of finished goods to multiple customers at an FMCG company. Nine valid interviews were used for data analysis. Interviews were transcribed and hand coded into themes to identify the factors. Secondary data was analysed from the company’s database using Microsoft Excel. Seven factors that impact the efficiency of the distribution of finished goods to multiple customers were identified. These included minimum order quantity and full truck loads, planning and process, resource management, inventory management replenishment, supply network, delivery frequency, truck turnaround time and booking slot.
A Research Report submitted to the Faculty of Engineering and Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Master of Science in Engineering, October 2019
Malema, Mmatholo Blantina, (2019). Factors impacting the efficiency of the distribution of finished goods to multiple customers at a fast-moving consumer goods company, University of the Witwatersrand, https://hdl.handle.net/10539/29056