FMCG Company Reduces Costs by Digitalizing Their Supplier Network

The Supplier Network leveraged #dltledgers Network to easily onboard suppliers

Company Overview

The FMCG company headquartered in South East Asia and operating in 50 countries is a leading producer of beauty and personal care products.

With a strong emphasis on research and development, the company has developed a wide range of innovative products that cater to the diverse needs of consumers. The company’s commitment to quality, sustainability, and social responsibility has helped it establish a strong brand reputation and a loyal customer base.

Problem Statement

One major challenge faced by an FMCG company was the lack of digitization in their supplier network. The company’s manual and paper-based supplier onboarding process, slow multi-stage approval, and unclear compliance requirements resulted in long response times, higher costs, duplicate records, and lower margins.

This inefficient process made it difficult for the company to quickly and accurately onboard new suppliers, leading to delays in product development and distribution. Additionally, the lack of visibility into the supplier network made it difficult for the company to identify areas for cost-saving or to track compliance with regulatory standards.

Solutions

The #dltledgers solution addressed the challenge of a lack of digitization in their supplier network by developing a simple and easy two-click digital onboarding process for their suppliers.

The Onboarding process clearly structured the full standards for adherence and provided periodic reminders to suppliers on compliance. This streamlined approach significantly reduced the time and cost of onboarding and helped increase compliance with sustainability standards.

The use of blockchain also improved the trust in sustainable reporting and practices, resulting in helping the company achieve their sustainability goals.

Moving onto the #dltledgers blockchain system has helped us smoothen the documentation flow across various parties is much closer to real-time. We are also seeing indirect benefits. Traditionally there are a lot of costs related to operations. With the platform we can streamline that process in a way that frees up resources.

Supply Chain Director

Large trans-national group, FMCG sector

Benefits

Getting a single source of truth across the data/documents shared in real-time with multiple stakeholders.
Real-time reports and secure tracking of the origin of goods and the chain of custody with verified documentations and certifications as tamper-proof digital records for compliance.
Supplier OTIF improvements by 10-15%.
Increase in Revenue by 20-30% connecting the multiple parties with the real time information flow.
Reduce in Inventory Shortages by 15-20%.

Product Capabilities

Easy Network Creation and onboarding multiple parties.
Digital Assets configured to be maintained as part of the distributed ledger with blockchain.
Real Time notification to expedite and avoid any delays in shipments across multiple parties.