Supplier Selection and Procurement Cost Optimisation Framework for Indian FMCG Firms

Objective: Develop a data-driven framework to optimise supplier selection and reduce procurement costs for FMCG companies in India.

Problem & Context: FMCG companies in India face challenges in selecting suppliers due to varying quality, costs, and reliability, impacting overall supply chain efficiency and profitability. Rising input costs and fragmented supplier networks further complicate decision-making.

Approach & Methodology: The student team will analyse procurement data, supplier profiles, and market benchmarks using structured frameworks such as the Analytic Hierarchy Process (AHP) and Total Cost of Ownership (TCO). Interviews with purchasing managers and benchmarking against industry best practices will supplement quantitative analysis.

Deliverables & Analysis: The project will produce a supplier evaluation matrix, cost optimisation strategies, and decision-support tools. Analysis will include cost-benefit comparisons, supplier risk assessment, and scenario modelling using real procurement datasets and Excel-based models.

Business Impact & Decision: The resulting framework will enable FMCG firms to make informed supplier selection decisions, negotiate better terms, and achieve measurable reductions in procurement costs, strengthening their supply chain resilience and competitiveness.