EVALUATING LOGISTICS DISTRIBUTION NETWORK DESIGNS OF FMCG SUPPLY CHAIN

FMCG products are sold in high volumes and are prices low. The low profit margins call for high operational efficiency in its supply chain. Having an optimal distribution network is must to be competitive in the industry. This paper evaluates different distribution configurations based on customer service factors and cost factors and suggests the suitable configuration for the FMCG supply chain with primary focus on consumer food products. TOPSIS analysis is carried out for the selection of optimal network configuration. Five configurations are taken as alternatives and 10 factors are taken as criteria. The weightage for the factors is calculated based on survey and interviews with professionals from FMCG and logistics companies. To avoid the biasness and uncertainty in data and judgement, a fuzzy TOPSIS method together with AHP analysis is carried out rather than traditional TOPSIS method. In this study, the factors are rated for food consumer products and the approach can be further extended to other FMCG categories