Page 31 - Logistics News July 2019

News

JIT manufacturing at the

core of an optimised FMCG

supply chain

Courtesy www.bizcommunity.com
THE ABILITY to manufacture ‘just enough’ stock to cover
orders and deliver ‘just enough’ product to every retailer
is the optimal supply chain scenario in the fast-moving
consumer goods (FMCG) industry. This is known as Just in
Time (JIT) manufacturing and delivery.
However, achieving it has historically proven to be
challenging. Data analytics and insights lie at the heart
of JIT, which requires line of sight throughout the supply
chain as well as intelligent software. Armed with this
knowledge, manufacturers are empowered with the ability
to right-size their production for maximum returns.
When it comes to the FMCG supply chain, pre-sales
is the most optimised route to market. Manufacturers FAW builds solid
know exactly what has been ordered and can deliver foundation with DSD
it as needed. The
manufacturer can Group
thus plan processes,
staffi ng and resources
to cater to this need. DIE SEMENT Depot (DSD), part of several
The problem is that companies in the André Mostert Vervoer
often distributors (AMV) Group, are proud FAW Trucks users.
or wholesalers have The Cape Town-based company sells import
to deal with a high cement from Vietnam and supplies ready-
volume of ad hoc mix concrete, sand and stone to its clients
and van sales. The throughout the Western Cape. Its ready-mix
manufacturer must produce extra stock of unknown concrete products are distributed through
quantities to cater to this, and often does not get it quite depots in Killarney, Kraaifontein and Faure.
right, leading to additional challenges. André Mostert, group CEO of the AMV
Van sales is highly ineffi cient and means that line Group, says DSD is the fastest-growing
of sight throughout the supply chain is impossible to ready-mix concrete supplier in Cape Town,
achieve. Manufacturers might know what they have sold buying over 90 trucks in the last fi ve years.
to distributors, and they might be able to get some sales “FAW trucks have stood the test of time.
data from retailers, but there is a distinct lack of visibility in They are fuel effi cient and durable. I am
many areas. From a distribution perspective, the distributor happy with the changes that have been
needs to maintain enough stock on hand to ensure that made to the FAW range, particularly the
they can supply suffi cient quantities to retailers. fi tment of ZF transmissions,” Mostert
The only way to achieve JIT manufacturing, and explains.
therefore JIT delivery, is to have a single, fully integrated The Group initially bought two FAW
system from the manufacturer to the distributor, through mixer trucks – a FAW 35.340FC and a FAW
to secondary distributors and fi nally the merchant. The 33.330FC – from the FAW Cape Town
data gathered through this integrated system can then be branch. These two trucks were already fi tted
3
3
analysed and predictive modelling applied to calculate the with 8m and 6m mixing drums respectively,
required volumes of each product. with FAW the only truck supplier in the city
Armed with this information, manufacturers can that could provide this convenience to DSD.
optimise their processes, distributors can optimise their Aff ordability was also a key factor. “FAW
deliveries and stock levels, and retailers can optimise their trucks are almost half the price of their
stock on hand and budget according to sales. Intelligent premium competitors. FAW is the superior
route to market software with predictive analytical truck in my fl eet. In fact, we haven’t replaced
capabilities is the key component in achieving the a single FAW in fi ve years,” says Mostert. •
seemingly impossible nirvana of JIT.

July 2019 | Logistics News 29