Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    Benchmarking of FMCG Industries in India

    Uploaded by

    arvindrathod
    The document presents information on benchmarking of Fast Moving Consumer Goods (FMCG) industries in India. It discusses benchmarking processes, best practices identified by Xerox Corporation through benchmarking competitors like Canon and Ricoh, and benchmarking partners in other industries. It also provides company profiles and financial details of Cadbury, Johnson & Johnson, and Nestle operating in India's FMCG market. It compares inventory holding costs, internal supply chain costs, accounts receivable, accounts payable, and inventory holding periods of the three companies from 2005 to 2007.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Benchmarking of FMCG Industries in India

    Uploaded by

    arvindrathod
    2K views22 pages
    The document presents information on benchmarking of Fast Moving Consumer Goods (FMCG) industries in India. It discusses benchmarking processes, best practices identified by Xerox Corporation through benchmarking competitors like Canon and Ricoh, and benchmarking partners in other industries. It also provides company profiles and financial details of Cadbury, Johnson & Johnson, and Nestle operating in India's FMCG market. It compares inventory holding costs, internal supply chain costs, accounts receivable, accounts payable, and inventory holding periods of the three companies from 2005 to 2007.

    Original Title

    Benchmarking of FMCG industries in India

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document presents information on benchmarking of Fast Moving Consumer Goods (FMCG) industries in India. It discusses benchmarking processes, best practices identified by Xerox Corporation through benchmarking competitors like Canon and Ricoh, and benchmarking partners in other industries. It also provides company profiles and financial details of Cadbury, Johnson & Johnson, and Nestle operating in India's FMCG market. It compares inventory holding costs, internal supply chain costs, accounts receivable, accounts payable, and inventory holding periods of the three companies from 2005 to 2007.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views22 pages

    Benchmarking of FMCG Industries in India

    Uploaded by

    arvindrathod
    The document presents information on benchmarking of Fast Moving Consumer Goods (FMCG) industries in India. It discusses benchmarking processes, best practices identified by Xerox Corporation through benchmarking competitors like Canon and Ricoh, and benchmarking partners in other industries. It also provides company profiles and financial details of Cadbury, Johnson & Johnson, and Nestle operating in India's FMCG market. It compares inventory holding costs, internal supply chain costs, accounts receivable, accounts payable, and inventory holding periods of the three companies from 2005 to 2007.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 22
    At a glance
    Powered by AI
    The key takeaways are that benchmarking is a process of identifying and implementing best practices to improve performance. It focuses on process improvement rather than achieving the highest performance.

    The purpose of benchmarking is to improve business operations or processes by identifying, understanding, and adapting best practices from both within and outside the company.

    The benefits of benchmarking include identifying bottlenecks, improving performance metrics like cost and time, creating a culture of continuous improvement, increasing sensitivity to external changes, and sharing best practices between partners.

    Presentation

    On
    “BENCHMARKING
    OF
    FMCG INDUSTRIES IN INDIA”

    Presented By
    Arvind Rathod
    @SIMS
    (Operations)
    Email: arvindelite@gmail.com 9823141993
     Benchmarking is the process of finding, adapting and
    implementing outstanding practices.

     Process for improving performance by constantly


    identifying, understanding and adapting best
    practices and processes followed inside and outside
    the company and implementing the results.

     The main emphasis of benchmarking is on improving


    a given business operation or a process by exploiting
    'best practices,' not on 'best performance.'
     Identification of bottlenecks and poorly performing activities

     Corrective action taken leading to improvement in operative


    parameters and reduction in cost and time to market

     Creates a culture that values continuous improvement to achieve


    excellence

     Increasing sensitivity to changes in external environment

     Focus through performance targets

     Prioritizing areas that need improvement

     Sharing best practices between benchmarking partners


     Bench marking organization: Xerox

     Benchmark : Canon, Ricoh etc


     Xerox Corporation is one of the world's top
    technology innovators, with research and
    technology centers in the United States,
    Canada, and France. The Xerox Innovation
    Group (XIG) invents next-generation
    technology, focusing on marking systems,
    materials, digital imaging, as well as solutions
    and services.
     Planning

     Analysis

     Integration

     Action

     Maturity
     'Leadership through Quality' program
    introduced

     Supplier Management System

     Inventory management
     Xerox zeroed in on various other best practice companies to
    benchmark its other processes.
     American Express (for billing and collection),

     Cummins Engines and Ford (for factory floor layout),

     Florida Power and Light (for quality improvement),

     Honda (for supplier development),

     Toyota (for quality management),

     Hewlett-Packard (for research and product development),

     Saturn (a division of General Motors) and Fuji Xerox (for


    manufacturing operations) and
     DuPont (for manufacturing safety).
     Highly satisfied customers for its copier/duplicator
    and printing systems increased by 38% and 39%
    respectively

     Customer complaints to the president's office


    declined by more than 60%.

     Customer satisfaction with Xerox's sales processes


    improved by 40%, service processes by 18% and
    administrative processes by 21%...
     FMCG market has been divided for a long
    time between the organized sector and the
    unorganized sector

     India’s Rs. 460 billion FMCG market remains


    highly fragmented with roughly half the
    market going to unbranded, unpackaged
    home made products
     COMPANY PROFILE

     In 1824, John Cadbury began vending tea, coffee,


    and (later) chocolate at Bull Street in Birmingham
    in the UK and sometimes in India. The company
    was later known as "Cadbury Brothers Limited

     After World War I, Cadbury Brothers Limited


    undertook a financial merger with J.S. Fry & Sons
    Limited, another chocolate manufacturer.
     Merger

     Cadbury merged with drinks company Schweppes to


    form Cadbury Schweppes in 1969.

    Demerger

    March 2007, it was revealed that Cadbury


    Schweppes was planning to split its business
    into two separate entities
    & The demerger took effect on 2 May 2008
    o one focusing on its main chocolate and
    confectionery market
    o other on its US drinks business
     COMPANY PROFILE

     the most comprehensive manufacturer of


    healthcare products, selling more than 100
    different products in the consumer,
    pharmaceutical and professional markets

     Since 50 years of establishment in India


     Nestlé S.A. (French pronunciation: [nɛsle]) is a
    multinational packaged food company
    founded and headquartered in Vevey,
    Switzerland

     It originated in a 1905 merger of the Anglo-


    Swiss Milk Company for milk products
    Cr. Rs.

    CADBURY JOHNSON NESTLE

    COST OF RAW 350.29 141.98 1647.46


    MATERIAL
    COST ADDITION IN 5.84 3.89 15.50
    THE RAW MATERIAL
    STAGE
    COST AT THE END OF 356.13 284.60 1454.66
    RAW MATERIAL
    STAGE
    COST AT THE END OF 1064.24 1416.92 2893.47
    WIP STAGE
    COST ADDITION AT 8.66 14.00 24.71
    THE FINISHED GOODS
    STAGE
    COST AT THE END OF 1072.90 1430.92 2918.18
    FINISHED GOOD
    STAGE
    COST OF HOLDING INTERNAL SUPPLY
    INVENTORY FOR TIME CHAIN MANAGEMENT
    PERIOD I (CR) COST FOR TIME
    PERIOD I (Lac’s)

    CADBURY 16.31 276.34

    JOHNSON 18.46 249.58

    NESTLE 49.08 389.29


    Cr. Rs.

    COMPANY ACCOUNTS ACCOUNTS PAYABLE


    RECEIVABLE

    CADBURY 71.63(LOW) 385.09(LOW)

    JHONSON 244.36 495.33

    NESTLE 168.6 957.78


    HOLDING CADB- JHON- NEST-
    PERIOD URY SON LE
    (NO.OF
    DAYS)
    2005 2006 2007 2005 2006 2007 2005 2006 2007
    RAW
    MATERIA 29 48 54 40 25 31
    L
    WIP 5 6 4 1 1 1 4 1 5

    FG 22 17 19 22 22 24 20 22 22
    CADBUR JHONSO NESTL
    Y N E
    2005 2006 2007 2005 2006 2007 2005 2006 2007

    INVT
    149.29 160.99 149.29 117.78 245 147.72 220.03 245.21 392.66

    A/C R
    20.06 39.4 71.63 164.38 219.6 244.36 112.08 158.99 168.6

    A/C P 205.57 293.41 385.09 537.39 553.01 495.33 685.32 768.87 957.78
     Recommendation

     If a firm is very large in comparison to its


    suppliers, then it should be more concerned
    about keeping its accounts payable at lower
    levels since the cost of capital faced by a small
    player is much higher.

     On the sell side, a firm may be prone to offer


    extensions of credit and sell more on credit to
    generate sales.

    You might also like