Reengineering of Supply Chain Process in FMCG Industry – A Case Study

Abstract

Modern enterprises are faced with many challenges and continually changing competitive environment, such as globalization of the economy of developed countries, the increasing demands for the quality and lower sale price of products and services, deregulation of the economies of developed countries, demands for excellence and continuous improvement. Because of these and many other reasons, there are permanent requirements for changes in performances, innovations, increasing flexibility and improving the economic performance of the company. In particular enterprise supply chain management (SCM) is defined as one of the key processes of which depends the profitability of the whole company. Also, in this process, which involves the management of a large number of sub-processes, it have been detected irrationalities that led to the higher costs, longer periods of storage stocks, large stocks, and the diminished profitability. Although the company is still profitable, management realized that the environment variable to the irrational danger that could quickly produce negative effects, and that the changes are desirable even in those processes that seem to work properly managed. Main objective of this paper was to explore possibilities for improvement of important business processes, such as supply chain management in fast moving consumer goods industry (FMCG) with the technique of business process reengineering (BPR) and business process improvement (BPI). Methodology used in this paper included step approach in line with the Harvard Business School Business Process Improvement. First, authors made a review of available literature on business process reengineering and supply chain management. In continuation, it has been analyzed the technique of BPI according to the Harvard Business School (HBS, 2010). After theoretical analysis, authors integrated appropriate aspects and steps of BPI in supply chain process of domestic company. They included: financial analysis of company before BPI act; implementation of BPI and second financial analysis of company’s performances after BPI implementation. Also, some non financial performances were discussed. The paper presents one case study research made to point out the significance of BPR in supply chain management. Authors tried to explain main areas of supply chain process in concrete production company so as the improvements that can be achieved by using techniques of BPR.DOI: http://dx.doi.org/10.5755/j01.ee.24.1.2544