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Process Benchmarking to Improve Effectiveness, Efficiency and Structure in Fast Moving Consumer Goods (Fmcg) Firms June 2012

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Process benchmarking to improve effectiveness, efficiency and structure in Fast Moving Consumer Goods (FMCG) firms
June 2012

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Contents
Executive summary Introduction Problem definition Existing solutions Process benchmarking as a solution Business benefits Summary Contact us 2 3 5 7 8 14 14 15

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Executive summary
Benefits
The benefit of benchmarking a firm’s processes is that one company can look at other companies with different strengths and learn then improve from them. FMCG is a truly global business and excellence varies by category and channel expertise. This is an industry in which there are several opportunities to learn and adopt best practice processes. Best practice has been derived from studies of 80 FMCG firms conducted from 2006 to 2012 in lead world markets. These studies observed, evaluated, measured and documented 12 major areas of work and described these as processes. Therefore FMCG has a standard against which one company’s ways of working (processes), and structures can be compared and evaluated against another’s.

Why benchmark?
The purpose of benchmarking is to help companies achieve maximum effectiveness and efficiency by comparing its processes to best in class in the FMCG industry. However strong a company is, there will be some process areas in which it is less effective. The demands of different categories, channels and industry structure make some companies better at some processes. For example:  Highly impulsive FMCG categories are best practice at point of purchase brand activation. A further purpose of benchmarking is to optimise structure and cross-functional synergies.…...

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