ABSTRACT
The company in this case story was a Fast-Moving-Consumer-Goods (FMCG) (a.k.a. Consumer Packaged Goods (CPG)). The company was a global manufacturer of personal care products, household goods, etc., which meant that these products typically sold quickly and had to be replenished quickly. And if for some reason a product was sold out (no stock on the shelf), a consumer had many options from competitors’ products to choose from, and/or a retailer might give the vacant shelf-space to a competing brand. So, stock-outs in a retail environment must be avoided; that’s one major reason why FMCG companies are known for having the best supply chain process. This particular company was no different, as they were globally recognized for their effective supply chain. But the manufacturing site of this case story was in Indonesia, an archipelago of 10,000+ islands, which created major logistical challenges. As the fourth most populous country in the world, Indonesia was a large consumer market, but it was spread over a large area of land, with many very remote consumer areas.
