FMCG Inventory Management Based On Supply Chain Collaboration

FMCG (Fast Moving Consumer Goods) industry is fierce competition, the turnover is very fast and the consumer demand is various. Due to the limitation of the traditional supply chain management, on the one hand, the FMCG enterprise often have the low order fill rate because of less stock; on the other hand, have to face the strong pressure for high inventory, high cost and slow response.Through the theoretical overview for the supply chain collaboration and inventory management, this paper is presenting the actual supply chain situation of company C by the case study, and the key problems faced is low order fill rate and high inventory level. Further to find out the root cause lies on the inefficient information communication, lack of the scientific method for inventory control. Based on the new supply chain collaboration knowledge and system, considering the FMCG's distinguishing feature, the paper concluded the optimized solutions from three sides, firstly to enhance the information sharing, set up the scientific demand forecasting model to improve the demand planning accuracy; secondly to establish CPFR system to control the channel inventory level; finally to improve the supply chain collaboration strategy and operation more efficiently.The aim of this paper is to research on the application and development of the supply chain collaboration in FMCG industry. Through theoretical research and case study, application methods of the supply chain collaboration, to establish the reasonable supply chain inventory management mechanism, also provide the guidelines for actual work.