Supply chain management in FMCG sector of Meghna Group of Industries

Abstract

Meghna Group of Industries (MGI) is a one of the largest Bangladeshi industrial conglomerates. Fast moving consumer goods (FMCG) division is one of the biggest portion revenue earner (2000 crore per year) of Meghna Group of Industries, which contributes to growth in national economy of Bangladesh. To bring efficiency and effectiveness MGI established supply chain management department in 2011. During that period supply chain management department only control distribution. From 2013 procurement, inventory, production, planning, distribution, depot management administer by supply chain management department, to minimize the cost and maximize the profit. To achieve its vision MGI gradually change their traditional system to upgrading system. Though it is quite difficult to adapt the new system among the employee, they should train them in where they are lack behind. In spite of lack behind in few areas, because of SCM they able to provide superior value to their customer. SCM department did tremendous performance during the unstable political situation. As an example for the period of hartal, strike they use rail and cargo trailer to ensure smooth delivery process and instead of day they deliver product at night to the party end from depot in 2013. Through out the Bangladesh they established 11 depots under SCM department and increase 67 % by value through increase sales order. In some cases if they able to adapt with the change in SCM, then MGI SCM will be the model for Bangladeshi FMCG Industry.