A Study on Financial Impact of Supply Chain Decision of Confectionery Products in India

Abstract:-Confectionery products were generating less profit compared to other food products.So,a study was undertaken in the supply chain function to analyze the reasons for low profit margin. The study undertaken examines the financial impact of supply chain decisions by taking into consideration different scenario with reference to reductions in the areas of transportation, warehousing and inventory carrying.

Keywords–confectionery; supply chain; profitability; inventory; financial impact

INTRODUCTION

In an organization supply chain network assumes a critical part in learning the profitability level. Supply chain challenges as a fast growing network possessing incredible complexities driven by globalization and product variety, competing in a fast changing environment. Under such conditions practices of supply chain management shows improvements in operational and financial performance. A supply chain should not only be efficient and lean but must also be dynamic and responsive.The productiveness of SCM influences the cost of fulfilling clients orders and transporting these requests to the clients, both of which effect the general landed cost of an item, this determine the financial outcomes of the firm. The study gives an overview on increasing the industries profitability by taking into consideration different scenario and it also gives in-depth understanding about the operations of supply chain and its effect on the aspects of finance.

OBJECTIVES

i. To understand the financial impact on basic supply chain alternatives, i.e. transportation cost, warehousing cost, inventory carrying costs.

ii. To analyze service failure in the areas of order fill rates.

iii. To estimate the lowest-cost reorder point under uncertainty of demand.

METHODOLOGY

The data collection pertaining to the study involves secondary data collected from annual report and well established books, journals, and internet and does not include any primary data. The calculations are based on financial data of confectionery industries published in the annual report.

Adopted methodology is to accumulate appropriate information pertaining to the relevant department, correspond the data obtained and to exhibit the material in an orderly and rational manner.

MS Excel tool has been used for the purpose of analyzing the data.

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