The supply chain cell is a new cross-functional area in many industries in India. It involves the integration of production planning, dispatch order generation and logistics planning, apart from general logistics, which primarily includes distribution. This paper deals with the study conducted for a fast moving consumer goods company having 14 production locations and 22 branches/clearing and forwarding agents. There were 36 packing lines, with each line packing different varieties of stock-keeping units. In this company, supply chain cell activities were concentrated on the middle of the classical supply chain. An attempt has been made to integrate production logic with the logistics by considering the total cost concept. The total cost concept also includes non-quantifiable parameters, which have been incorporated by the use of the analytical hierarchy process. An optimization technique has been proposed simultaneously to support the planning logic developed. The supply chain cell helps to optimize the total supply chain cost as well as enabling it to supplement other benefits such as an improvement in inventory turnover and a reduction in the inventory carrying cost.