How end to end supply chain management is helping Indias CPG giants

Blog

How end-to-end supply chain management is helping India’s CPG giants ride the quick commerce wave

  • How end to end supply chain management is helping Indias CPG giants
2 minute read

“If delivery to customers can happen in eight minutes, why should it take Nestlé two days to refill stocks?” 

 

This was the pointed question posed to Suresh Narayanan, Nestlé India’s chairman, by Blinkit, a leading quick commerce platform in India.

The remark sums up the new reality. Quick commerce is pushing every consumer packaged goods (CPG) brand to fundamentally rethink its supply chain. The speed and accuracy demanded by today’s instant delivery platforms have made traditional, slow-moving replenishment cycles obsolete. The race is on to create supply chains that are as fast and responsive as the digital marketplaces they now serve.

Unpacking the quick commerce puzzle


The quick commerce market in India is expected to generate a revenue of $5,384 million in 2025, with a projected compound annual growth rate (CAGR) of 16.6% from 2025 to 2029. According to a BCG report, quick commerce services have scaled to 40+ cities across India, reflecting strong nationwide adoption and positioning the country as a fast-evolving market for “need-it-sooner” retail. Predictably, it’s also keeping India’s CPG leaders up at night.

  • Demand volatility at breakneck speed: Quick commerce means demand can surge unpredictably. Whether prompted by social media trends, weather swings, or a viral promotion, companies need to sense and predict these swings, not react to them days later.
  • Inventory positioning and micro-fulfillment: Gone are the days of central warehouses replenishing sprawling supermarket shelves on a weekly cadence. Now, hundreds of smaller fulfillment centers tucked into urban neighborhoods must be kept stocked—often with little room for error or excess.
  • Distribution bottlenecks: In cities stuffed with traffic and labyrinthine geographies, the last mile is both logistically and computationally complex. Orders must be routed to precise locations, with inventory arriving just before it’s needed—and no sooner.
  • Data, AI, and the future of forecasting: In such a volatile environment, legacy tools quickly reach their limits. Smart companies are turning to artificial intelligence to mine data from countless sales signals, social feeds, weather forecasts, and more. Only with machine-driven insight can companies hope to sense demand fluctuations far enough in advance to take meaningful action.
     

 

End-to-end supply chain management and the art of keeping up with quick commerce


By evening, the shelves overflow with chips; by morning, they’re nearly empty, wiped out by a late-night cricket match frenzy. This is the pulse of quick commerce in India. Sudden spikes, steep drops, and zero margin for error.
To stay ahead, CPG companies need forecasting, planning, and inventory systems woven into an end-to-end supply chain management approach that moves as quickly as the customers they serve.

“Quick commerce has collapsed replenishment cycles from days to hours. Only end-to-end supply chain management—powered by AI and real-time networks—can give CPG leaders the agility and resilience to keep pace,” 

Daniel Kohut, Industry Advisor, Blue Yonder

 

Forecasting that keeps pace with trends

One week, soft drinks sell out during a heatwave. The next, sales dip as rains cool demand. A demand planning solution powered by AI helps brands sense these shifts early, align inventory with real needs, and avoid the empty-shelf moments that frustrate customers. It gives companies the confidence to plan, not just react when shelves start running dry.

Planning that connects functions

When demand for packaged snacks suddenly climbs during cricket season, companies can’t afford to wait for lengthy review meetings. An integrated business planning solution connects teams, data, and processes so production, logistics, and sales can respond together — cutting the lag between market signals and business action.

Getting stock where it’s needed most

Festival season often means soaring demand for chocolates and gift packs. An allocation and replenishment solution ensures those products don’t pile up in the wrong warehouse but flow quickly to stores where shoppers are buying. The right stock in the right place keeps promotions smooth and customers satisfied.

A network view of risk

A single delayed truck carrying cooking oil can disrupt supplies across multiple cities. Connected supply chain networks provide visibility across suppliers, factories, warehouses, and stores. Disruptions like a single delayed truck can be flagged early, with corrective actions taken before customers feel the impact.

ITC reduces cost of goods sold by 1% with Blue Yonder

See how ITC turned a network design investment into a 1% COGS reduction and a full return in under 60 days.

Read The Case Study

Proof in the biscuits: How ITC rewired its supply chain

When India’s biscuit giant ITC realized its spreadsheet tools couldn’t keep pace with rising demand volatility and raw material cost swings, it turned to Blue Yonder. Managing more than 120 biscuit SKUs across 17 factories and 50 warehouses, ITC needed more than incremental fixes — it needed a total-cost view of its entire network. Blue Yonder’s network design capabilities gave them that perspective.

The results were immediate. As one ITC supply chain manager put it:

 “We have saved nearly one percent of the cost of goods sold by optimizing our supply network against our business plan, which represents a substantial savings. We achieved this by understanding and leveraging structural cost differences, as well as deploying our resources more effectively against changing market dynamics.” 

 

The company also achieved a full return on its investment in less than two months — a remarkable feat in an industry where margins are razor-thin.

Beyond cost savings, Blue Yonder helped ITC take the long view. With new planning capabilities, the company built a five-year capacity roadmap, tested what-if scenarios before making decisions, and created seamless collaboration across procurement, production, sales, and logistics. Today, ITC’s biscuit division has become a model for how end-to-end supply chain management, powered by Blue Yonder, can help India’s CPG leaders rise to the demands of quick commerce.

Read the full story here. 

The Strategic Takeaway

Quick commerce is more than just a new channel—it’s a catalyst for supply chain reinvention.
India’s CPG giants must replace slow, siloed processes with digitally connected AI-powered supply chains that deliver agility, resilience, and speed-to-market. Those who succeed will not only survive the quick commerce wave but harness it for lasting competitive advantage.

Ready to reach every corner of India?

Discover how a connected CPG supply chain allows you to sense demand early, optimize routes, and expand your network across the entire country without increasing your operational costs.

Discover More