At a time when the market is faced with an unprecedented spike in the demand for different category of products, and especially FMCG products, we reached out to Vinay Kumar, Head of Supply Chain, Modi Naturals Ltd. to understand the reasons behind the spike in demand, the way to strike the right balance between demand and supply, the importance of sustainable sourcing, day-today challenges and much more.
Q] Despite inflation, India is currently facing a huge demand surge in kitchen essentials leading to supply gaps across grocery stores and e-commerce platforms. What do you see as the reason behind the demand spike?
Work from home has ended - working professionals are back to their bases, starting life in that city afresh - thus an increase in demand for kitchen supplies. There are a lot of chip shortages in the current market which is one of the big reasons for the demand and supply gap. The pandemic granted time - hence people started making healthy choices over junk or packaged ones leading to a demand push for kitchen supplies.
QI Demand forecasting must be a critical area for you given your diverse product portfolio. How do you aim to strike the right balance between demand and supply and keep your inventory cost minimum?
By keeping a robust eye on demand-supply variation. By doing proactive demand sensing over-reactive demand planning. By regulating the forecasts, and thus the production process twice a week (depending on the flexibility of the production process). By achieving a better On-Time-In-Full (OTIF). By making available the right product, in the right quantity, at the right place, at right time one can strike the right balance between demand and supply.
This story is from the February 2023 edition of Logistics Insider.
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This story is from the February 2023 edition of Logistics Insider.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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