A Study on Inventory Management and Its Impact on Profitability in GCPL

Abstract

Inventory management is one of the most critical functions in any manufacturing or FMCG organization as it directly influences cost efficiency, production continuity, and customer satisfaction. This study aims to examine the inventory management practices followed by Godrej Consumer Products Limited (GCPL), a leading FMCG company in India. The research emphasizes the importance of maintaining the right balance between inventory investment and operational efficiency, ensuring that materials are available at the right time, in the right quantity, and at the right cost.

The study is based on secondary data collected from company reports, official websites, and related research papers. Various analytical tools such as Inventory Turnover Ratio, Economic Order Quantity (EOQ), ABC Analysis, and Safety Stock calculations were used to evaluate GCPL’s inventory performance. The analysis revealed that the company’s inventory turnover ratio has shown consistent improvement over the years, indicating efficient stock utilization. EOQ and ABC analyses helped in identifying key raw materials that require strict monitoring, while the safety stock assessment ensured continuous production even during supply chain uncertainties.

The findings of the study conclude that effective inventory management techniques have significantly contributed to GCPL’s profitability and overall performance. By implementing systematic and scientific approaches, the company has been able to reduce costs, improve cash flow, and enhance customer satisfaction. The research suggests that efficient inventory management not only improves operational productivity but also strengthens the organization’s competitive advantage in the fast- moving consumer goods sector.

Country : India

1 Swasthika A2 Divya H

  1. MBA Student, Department of Management Studies, Sri Manakula Vinayagar Engineering College (Autonomous), Madagadipet, Puducherry, India
  2. Assistant Professor, Department of Management Studies, Sri Manakula Vinayagar Engineering College (Autonomous), Madagadipet, Puducherry, India

IRJIET, Volume 9, Issue 11, November 2025 pp. 457-461

doi.org/10.47001/IRJIET/2025.911051

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