Industry playbooks
FMCG Multi-Plant Planning: Balancing Demand, Capacity and Freshness
Many SKUs, many plants and short shelf lives. How planners keep service high without drowning in stock.
Trikaan Research & Engineering4 min read
KEY TAKEAWAYS
- FMCG planning balances service, cost and freshness across many SKUs.
- Allocate products to plants based on cost, capacity and distance.
- Plan changeover sequences to protect capacity.
- Set stock norms by SKU class and shelf life.
FMCG companies make many SKUs across several plants for a distribution network with short lead times. Planners juggle demand swings, promotions, changeovers and shelf life every week.
This article outlines a planning approach that keeps service high without drowning in stock.
Demand signals
Combine sales history, distributor orders, promotions and seasonality. Forecast at the level where it is most reliable — often product family and region — then split to SKUs.
Which plant makes what
| Factor | Consideration |
|---|---|
| Capacity | Line speeds and available hours |
| Cost | Conversion cost per plant |
| Freight | Distance to demand |
| Capability | Pack formats a line can run |
| Risk | Avoid single-plant dependence for key SKUs |
Changeover sequencing
Sequence products on lines to minimise cleaning and setup — light to dark, allergen-free before allergens, small packs before large — while meeting due dates. Record actual changeover times to improve the sequence over time.
Stock norms and freshness
- Classify SKUs by volume and variability.
- Set days-of-cover norms per class and location.
- Respect shelf life with first-expiry-first-out.
- Track stock nearing expiry weekly.
A weekly planning rhythm
- Monday: demand review with sales.
- Tuesday: plant allocation and capacity check.
- Wednesday: line schedules and material requirements.
- Daily: plan vs actual and exceptions.
Frequently asked questions
How do FMCG companies forecast demand?
Using sales history, distributor orders, promotions and seasonality, usually at family or region level.
What is a changeover matrix?
A table of setup times between products, used to sequence production efficiently.
How do we avoid expiry losses?
Set stock norms by shelf life and enforce first-expiry-first-out.
Can AI improve FMCG planning?
AI can improve forecasts and propose schedules; planners should approve them.
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Trikaan Research & Engineering
Trikaan
Written by the researchers and engineers who build Anvaya, ASTR and Seed Track, with input from Trikaan's delivery and engineering teams.
