Inventory Flow Management Process in FMCG (Beverages) Sector

Abstract

Inventory flow management system provides framework for achieving goals of top-line management. India is going through FMCG revolution, all the big business houses are entering this sector like Field fresh (Air Tel), TATA with PepsiCo India etc. Our country also poses a big challenge to organized large FMCG companies particularly in beverages sector. A well managed inventory ensures that customers receive the products when they need them, in the quantities they need, and with the uniform high quality they expect. In this research paper, we have discussed the ways to manage the flow of inventory through the manufacturing and distribution system. Globalization, integration of the world economy and the concept of extended enterprise has led to an increasingly important role played by the entire inventory management system. The most important thing to an owner of business is to provide a quality product and service to the customers with effective utilization of Inventory flow management system. Inventory flow management allows the organizations to match the inventory levels to the customer demand, while meeting the other objectives such as capacity, productivity, and profitability. In a competitive business environment, inventory flow is therefore a critical part of business.