Regional Distribution Optimization for a Multinational FMCG Company
/ Case Study / Regional Distribution Optimization for a Multinational FMCG Company

Regional Distribution Optimization for a Multinational FMCG Company

Client

The client is a multinational FMCG company using Singapore as its regional distribution hub for Southeast Asia. With increasing regional demand and supply chain complexity, the organization aimed to enhance warehouse efficiency, reduce logistics costs, and improve inventory turnover across its distribution network.

Issues

Rising warehousing costs and fluctuating regional demand were affecting profitability. Inventory inefficiencies and limited demand forecasting capabilities resulted in stock imbalances. Coordination with third-party logistics providers lacked transparency, leading to inconsistent delivery performance and reduced operational agility.

Solution

Eurogroup Consulting designed a supply chain optimization roadmap focusing on warehouse efficiency, predictive demand planning, and regional logistics coordination to enhance cost control and service reliability.

Approach

We performed a comprehensive supply chain diagnostic analyzing inventory turnover ratios, warehouse layout efficiency, transportation routes, and regional demand forecasting models. Operational data was assessed to identify cost leakages and bottlenecks within warehouse processes. Comparative benchmarking was conducted against leading distribution hubs in Singapore to establish performance gaps. Based on these findings, we redesigned warehouse workflows, introduced digital inventory tracking systems, and structured improved collaboration models with logistics partners to enhance coordination and visibility.

Recommendations

We recommended adopting predictive analytics for demand planning and implementing smart warehouse technologies to enhance efficiency. Strengthening performance KPIs with third-party logistics providers and diversifying transportation partnerships were advised to improve reliability and resilience across the regional supply chain network.

Engagement ROI

Warehouse efficiency improved by 32%, while logistics costs decreased by 18%. Inventory turnover increased by 27%, reducing working capital pressure. Delivery reliability improved by 25%, significantly enhancing customer satisfaction across Southeast Asia.

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