The Research On Application Of Supply Chain Management In The FMCG Industry

With the development of economic globalization, the TNC of Fast MovingConsumer Goods are to keep implement the development strategy of globalization, toseize China’s fast moving consumer goods market. In the same times, Chinese FMCGis more and more popular. The first one that builds a complete and efficient andpractical supply chain will get the superiority in the fierce market competition. So themanagement of FMCG must change with the times. The Supply Chain Management isa modern management thinking which rise of1990s. It is combination of managementthinking and information technology. With the economic globalization, Customerdemand more personalized, and competition among enterprises has gradually evolvedinto competition between alliances or relationships conglomerates constitute a supplychain. The core of supply chain management is to ensure close coordination betweenmembers of the supply chain system and improve benefit.This article analyzes the characteristics and current situation of the ChineseFMCG industry by the supply chain management application, find the problems thatChinese FMCG industry had, and Improve the current "vertical integration"management system. In the front of this article it discusses the theory of supply chainmanagement and important factors, which is to study the application of supply chainmanagement model in FMCG industry from procurement management, operationsmanagement, inventory management and supply chain information sharing. In thelater part of this article, Soft ltd which is a typical cosmetics company in China as acase, is comparative analysis with Jahwa Co., Ltd. By analyzing their data as well asthe financial statements of the questionnaires, the company exists three majorproblems---demand forecasting, inventory management, supply chain informationsharing. Combined with the company’s business development situation, we provideimproved solutions for the internal and external supply chain management from theperspective of practical application. We use the exponential smoothing to optimizethe demand forecast, CPFR to ameliorate the inventory management problem, classifythe partners and supply chain information to solve the information sh aring problem.Through the implementation of the supply chain management, each link in the supplychain to achieve cost savings and external efficiency. It has some practicalsignificance for the development of other fast moving consumer goods companies.