SlideShare a Scribd company logo
1 of 8
By Group 1
| Saiyam | Nagesh | Shalaka | Suraj |
| Shobhit | Roshan | Jitendra | Anuj |
An FMCG Company has the following setup:
We have 17 Manufacturing Locations across the India.
We have 65 Depots, i.e. Retailing Points.
There are 6000 SKUs with the company.
1. Communication Issues
2. Inventory Build Up
3.Heavy Transportation
4. Long Replenishment Time
5. Higher Lead Time
6. High Storage Cost
7. High Manufacturing Cost
 Recasting it's supply chain
network through Hub & Spoke
model.
 Efforts towards reducing the lead
time and responsiveness.
Hub& Spoke Model
1 CDCs in Nagpur
3 Mfg. units per RDCs
500 SKUs/ Mfg. Locations
CDC to RDC on FTL basis
RDC to RDC through stock transfer
Each RDC suffice the requirement of
its zone
All CDC and RDCs will be
interconnected with WMS
FMCG Company Implements Hub and Spoke Supply Chain Model
FMCG Company Implements Hub and Spoke Supply Chain Model

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FMCG Company Implements Hub and Spoke Supply Chain Model

  • 1. By Group 1 | Saiyam | Nagesh | Shalaka | Suraj | | Shobhit | Roshan | Jitendra | Anuj |
  • 2. An FMCG Company has the following setup: We have 17 Manufacturing Locations across the India. We have 65 Depots, i.e. Retailing Points. There are 6000 SKUs with the company.
  • 3. 1. Communication Issues 2. Inventory Build Up 3.Heavy Transportation 4. Long Replenishment Time 5. Higher Lead Time 6. High Storage Cost 7. High Manufacturing Cost
  • 4.  Recasting it's supply chain network through Hub & Spoke model.  Efforts towards reducing the lead time and responsiveness.
  • 6. 1 CDCs in Nagpur 3 Mfg. units per RDCs 500 SKUs/ Mfg. Locations CDC to RDC on FTL basis RDC to RDC through stock transfer Each RDC suffice the requirement of its zone All CDC and RDCs will be interconnected with WMS