FMCG Companies Streamline Supply Chains Ahead of Roll-Out

  • FMCG companies are optimizing and rationalizing their operations ahead of the July 1 GST (Goods and Services Tax) roll out.
  • For instance, Nestle is evaluating the realignment of its warehouses and supply chains, besides exploring locations to set up hubs and shutting down some distribution centers.
  • Presently, consumer goods companies end up having warehouses in every state to avoid paying 2% CST (Central Sales Tax) for inter state sales of goods.
  • Coca-Cola is also looking at depot consolidation and setting up mother depots in 3-4 states. In each state, they have 2-3 small warehouses, which may be phased out if they don’t fit into the business after GST’s implementation.
  • Companies will have a complete relook at their business operations after the GST roll-out. This will impact their financials and operations in a huge way. This way they may have to incur expenses in short run but in the long run, it will hugely benefit the company.


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