Cost Reduction Analysis Through End To End Supply Chain Management

In fast-moving consumer goods industry, as a result of the single product price isnot high, and there has lots of similar brand, which lead to fierce competition in themarket. In today’s fierce competition, how to produce products with good quality butlower cost, will be the core competitiveness of fast-moving consumer goods company.Through reading and researching the supply chain cost control related information ofhome and abroad, as well as to understand the theory of end-to-end supply chainmanagement seriously, and then learn the actual supply chain management status offast-moving consumer goods companies such as P&G through interviews. Finally,demonstrating end-to-end supply chain management system is the effective to achieveexcellent cost saving results.For supply chain management, P&G company has been taking the leadingposition in the manufacture industry, but the fierce market competition forces bigcompanies such as P&G to further explore loss in the supply chain to reduce theproduction cost, to ensure leading in the market share. This article through studyingthe strategy and problem solving methodology in the end-to-end supply chainmanagement implementation, especially focus on the analysis of P&G companyimproving operation mode of raw material and finish products with utilizing thetheory of end-to-end supply chain management. And compare the operating cost andinventory level before and after the end-to-end supply chain management of rawmaterials, packaging materials and finished products, and found that P&G overallsupply chain operating costs and inventory had significantly reduced. This furtherdemonstrated that the end-to-end supply chain management is the effective method tohelp reduce the supply chain system total operating costs in fast-moving consumergoods companies, and achieve win-win situation with suppliers and customers.Without reducing the quality of the products while reducing operating costs, that willimprove market competitiveness and win the future consumer market.