www . refrigerationandaircon . co . za RACA Journal I June 2023 41
Contributor
CAN YOU RAMP UP FMCG SPEED , EFFICIENCIES AND COST- EFFECTIVENESS USING BPO ?
By Avi Maharaj , national finance manager at Programmed Process Outsourcing ( PPO )
In the fast-moving consumer goods industry , nothing is more important than enabling flexibility and efficiency to meet varying supply and demand with ease .
Through business process outsourcing ( BPO ), it is possible for companies in the FMCG industry to reduce headcount using technology while increasing output , lowering costs , and reducing the security risks associated with moving consumer goods .
By becoming an extension of the business , assuming total responsibility for specific processes , BPO providers can support industry players in continuously improving and optimising efficiencies , helping to overcome increasingly challenging operational circumstances .
MANY HANDS DO NOT LIGHT WORK MAKE , ANYMORE When it comes to efficiency , bringing more hands on deck is not the solution in today ’ s stretched economic environment . Take one of SA ’ s largest e-commerce fulfilment enterprises as an example : despite 450 heads on-site running two shifts , production was still a struggle . This is problematic in the FMCG sector , particularly as consumers expect rapid turnaround and an accurate , hassle-free experience .
Although not an overnight fix , in this scenario by implementing BPO it was possible for this enterprise to reduce its headcount to under 90 individuals over four years , while drastically improving performance and output at the same time . The biggest challenges for this particular company were overstaffing , poor management and a lack of process flow in which efficiency was further hindered by an antiquated warehouse management system .
IN-HOUSE PERFORMANCE PITFALLS For most businesses in e-commerce , the biggest challenge comes in when certain processes ( like warehouse management , transport , logistics , inventory management )
Tham Yuan Yuan | Pixabay
In an e-commerce ecosystem , warehousing and distribution of products is critical – especially because of the growing expectation of the consumer .
www . refrigerationandaircon . co . za RACA Journal I June 2023 41