MAGAZINE  №2 (91) April 2019

AUTHOR BORISOVSKAYA M.A. - Sr Demand Planner, Business Intelligence/Commercial Department, The Coca-Cola HBC EUROASIA (Moscow, Russia)

CATEGORY Analytics and reviews Logistic integration and coordination Supply chain planning

ABSTRACT

Promotions for fast moving consumer goods (FMCG), especially price promotions are among the most powerful tools to increase sales. The sales volume at the promotional price can be ten times higher than at the regular one. The most stable promotional programs today are offered by National Key Accounts (NKA’s).
Herewith, they put forward strict cooperation conditions which are often difficult to fulfill even for transnational FMCG corporations represented in Russia. This review article reveals the trends in the development of relations between the Russian NKA’s and the largest FMCG companies. The role and features of logistics of both contractors in the conditions of promotions are defined, the tasks and problems faced by logistics of both contractors are consolidated. The methodology of the study of cross-functional and inter-organizational coordination is based on system analysis, classification, analogy and generalization, forecasting and interviewing. Top managers of the interacting departments of FMCG companies and NKA’s were interviewed for difficulties in planning and implementing promotions in oral and written forms. As a result, a table of the main points of interaction and possible conflicts among departments within and among FMCG companies and NKA’s has been developed.

 Electronic version

 Keywords:  

• consumer behavior

• promotion planning

• Collaborative Planning

• assortment management
• FMCG

• forecasting