Strengthening Distributor Controls for a Global FMCG Leader in Indonesia

Client Profile:

A multinational Fast-Moving Consumer Goods (FMCG) enterprise with an extensive
network of distributors across Indonesia.

Challenges:

Frequent stock pilferage and abnormal inventory losses across the distribution network
Invoicing discrepancies, causing disputes and revenue leakages
Inefficient logistics operations with minimal traceability
Large annual write-offs due to poor inventory visibility
Lack of control at distributor and vendor level, leading to operational blind spots

Our Solution:

JCSS Indonesia was appointed as the outsourced audit and logistics control
partner, with a mandate to address stock integrity, streamline logistics, and instill
discipline across the supply chain. We introduced:

End-to-end review of logistics workflows, from factory gate to distributor warehouse
Surprise on-site audits at distributor and vendor locations, including
physical stock checks and invoice verification
Implementation of a bad stock tracking system to identify leakages in real time
Process mapping and corrective SOPs for stock handling, reconciliation, and reporting
Coordination with the client’s SCF (Supply Chain Finance) team to integrate
finance controls into logistics touchpoints

Results Delivered:

Pilferage and stock losses reduced significantly within 12 months
Inventory write-offs cut down substantially, improving P&L hygiene
Enhanced vendor accountability and invoice traceability
Improved collaboration between operations and finance teams through integrated controls
Established a culture of discipline and compliance across the manufacturing and distribution ecosystem