Cost Optimization of Warehousing Operations in FMCG: An Analytical Study of Supply Chain

Abstract

The objective of this study was to explore the variable which may affect the direct cost as well as Indirect cost. From a detailed literature review a list of variables was created. The variables were used to collect data on a five-point scale. The data was analyzed by factor analysis method through which variables were suppressed and few factors were achieved as Resource management, Order processing, Material handling, Warehouse management system and Optimizing inventory. These factors were considered and cost index was computed from the data obtained from factor analysis. This study gives a solution and is applicable for particular situation and may not be replicated for other issues. The global scenario is being put some light on which is then compared with the present Indian state so as to find out the weak link points in the system as compared globally. Further it talks about the operations and cost optimization techniques, types and process. The factor which can affect the direct and indirect cost and its consequences. Through the study the gap finding was done so as to find out the research gaps which can be worked upon. These gaps helped in finding the variables for the study. The data was validated and by expert’s opinion and further range is derived which help device a solution to the problem mentioned.