Best strategies & practices for FMCG supply chain management in Jordan

FMCG supply chain management is the backbone of the success of companies in Jordan. It requires speed of implementation and accurate planning to achieve maximum effectiveness. With the increasing challenges facing companies in this sector, it has become necessary to adopt innovative strategies and effective practices to ensure that market needs are met quickly and efficiently. In this article, we will review the best methods and approaches to achieve excellence in FMCG supply chain management, which contributes to enhancing the competitiveness of companies in Jordan.

FMCG supply chain management

It is a system for managing operations related to the supply chain of fast-moving consumer goods.

This system includes all activities that ensure the provision of products from the production stage until they reach the end consumer as quickly as possible and at the lowest cost.

The importance of FMCG supply chain management

FMCG supply chain management is considered one of the most important pillars that determine the success or failure of FMCG companies.

Effective supply chain management plays a fundamental role in achieving the operational and financial goals of companies. Here is its importance:

• Ensuring product availability: The supply chain management system helps ensure that products are on store shelves at the right time, which enhances customer satisfaction and increases sales.
• Reduce operational costs: By improving logistics and inventory management, companies can reduce unnecessary costs such as overstocking or delays in distribution.
• Adapt to market changes: Effective FMCG supply chain management helps companies respond quickly to changing market demand.
• Enhance operational efficiency: Effective management means reducing errors and improving the flow between different stages, from production to distribution.
• Improve supplier and partner relationships: Through good collaboration and smooth operations management, companies can build long-term relationships with suppliers and outlets, supporting business continuity.

Best FMCG supply chain management strategies in Jordan

Here are some of the best strategies to improve FMCG supply chain management in Jordan:

Rely on modern technology

Use supply chain management (SCM) systems to track operations efficiently. Adopt technologies such as artificial intelligence and data analytics to forecast demand and improve planning.

In addition to applying cloud solutions to facilitate collaboration between suppliers and distribution partners.

Enhance collaboration with suppliers

Build strong, long-term partnerships with local and international suppliers. Improve information flow to ensure regular supply of raw materials and agree on flexible schedules that meet changing market needs.

Manage inventory intelligently

Implement strategies to reduce excess inventory and store only necessary quantities is one of the best FMCG supply chain management strategies.

Automated inventory systems can also be used to ensure the accuracy of information.

Improve distribution networks

Adopt regional distribution centers to reduce transportation costs and speed up delivery, such as Cross Jordan, while utilizing specialized logistics companies to improve efficiency.

It can also be useful to use GPS technologies and route analysis to choose the fastest routes for distribution.

Continuous performance evaluation

Measure key performance indicators (KPIs) such as delivery accuracy, distribution cost, and customer satisfaction level.

Use these indicators to identify improvement points and make necessary adjustments, while periodically reviewing operations to ensure they are aligned with changing market objectives.

Components of FMCG supply chain process

FMCG supply chain management requires careful coordination between multiple stages to ensure that products reach the end consumer with the highest efficiency. The following are the main components of this process:

Demand analysis: Estimating the required quantities based on market data and consumer trends.

• Resource management: Identifying the raw materials and resources required for manufacturing and distribution.
• Scheduling: Planning the production and distribution stages according to specific dates.
• Supplier selection: Identifying the best suppliers for raw materials and intermediate products.
• Negotiation: Entering into agreements with suppliers to provide materials with high quality and competitive prices.
• Purchasing management: Purchasing raw materials in quantities that match operational needs.
• Manufacturing and production: Includes packaging products in a way that ensures protection and attractiveness at points of sale
• Inventory management: Effective storage includes conducting periodic inventory to verify available quantities.
• Distribution and logistics: Includes transportation and determining the best methods for distributing products.
• Sales and retail: Includes cooperating with appropriate stores and stimulating points of sale with local distribution effectively.
• Reverse logistics management involves the return of goods that were not sold or that were damaged.

FMCG supply chain examples

Here are some practical FMCG supply chain examples that show you how FMCG supply chain management works:

Distribution of soft drinks

• Manufacturing: The drinks are produced in specialized factories according to precise standards.
• Storage: The products are transported to distribution warehouses covering different areas.
• Distribution: Equipped trucks are used to deliver the drinks to retail stores and supermarkets.
• Final sales: The drinks are displayed at points of sale to be available to consumers.

Packaged food products management

• Suppliers: Raw ingredients such as grains or oils are supplied from local or international suppliers.
• Production: Food products (such as biscuits or chocolates) are manufactured in factories.
• Packaging: They are packaged using automated production lines.
• Shipping and distribution: They are distributed to commercial outlets or via online stores.

The most famous FMCG companies in Jordan

FMCG companies in Jordan are distinguished by providing essential products such as food, beverages, cleaning materials, and personal care products.

Effective FMCG supply chain management also plays a key role in their success. Here are the most prominent companies known in this field:

Nestlé Jordan

• Sector of work: Food and beverages.
• Most popular products: Dairy products, coffee (Nescafé), bottled water (Nestlé Pure Life).

PepsiCo Jordan

• Sector of work: Soft drinks and snacks.
• Most popular products: Pepsi, 7UP, Lay’s, Doritos.

Almarai Company

• Sector of work: Dairy products and juices.
• Most popular products: Milk, yogurt, natural juices.

Zainco Food Industries

• Sector of work: Food manufacturing and distribution.
• Most popular products: Canned food, sauces, and frozen products.

FMCG logistics

Is the process and logistics services used to transport and store fast-moving consumer goods.

These goods include products that are consumed quickly such as food, beverages, cleaning supplies, and personal care products.

Due to their nature, they require careful logistics management that is no less important than FMCG supply chain management. This is to ensure that products are delivered at the right quality and on time.

How to Choose the Best FMCG Supply Chain Companies in Jordan

Choosing the best FMCG supply chain companies is an essential step to ensure the success of business operations and achieve efficiency in delivery and distribution. Here are the factors to consider when making this decision:

• Choose a company with a proven track record in managing FMCG supply chains. You can check the reputation through customer reviews and recommendations from other companies.
• Make sure that the company covers all the areas you are targeting in Jordan, and its capabilities in managing regional and local distribution, especially in remote areas.
• Choose a company that guarantees fast delivery of products, which is essential for fast-moving goods.
• Look for companies that have warehouses equipped with modern storage systems that support efficient inventory management.
• Compare the prices of the services provided with their actual value. Look for offers that provide a balance between cost and quality.

Cross Jordan is one of the best companies in Jordan that provides distinguished distribution services that ensure your products reach the markets quickly and efficiently.

With its long experience and deep understanding of local market needs, Cross Jordan helps you choose the best strategy that suits the nature of your business in Jordan ensuring that your business goals are achieved efficiently and sustainably.

FAQs

What is FMCG in the supply chain?

It refers to products with high demand and rapid turnover, such as food, beverages, personal care items, and household goods.

What are the 3 major segments of the FMCG industry?

• Packaged Goods: Includes food, beverages, personal care, and household products.
• Personal Care: Covers cosmetics, toiletries, and pharmaceuticals.
• Home Care: Encompasses cleaning products, detergents, and household appliances.

What is the correct order of the FMCG supply chain?

1. Raw Material Sourcing.
2. Manufacturing.
3. Warehousing & Distribution.
4. Retail.
5. Consumer.