FMCG Logistics
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What Is FMCG Logistics
Fast-Moving Consumer Goods (FMCG) logistics deals with the supply chain and distribution processes of consumer products that sell quickly and at relatively low cost. This encompasses products ranging from perishable food items, toiletries, beverages, and over-the-counter drugs, to numerous other consumables. The rapid sale turnover and the perishable nature of many FMCG products necessitate a precise and efficient logistics operation. FMCG logistics ensures products are distributed to retailers in the right quantities, at the right time, ensuring optimal shelf life and availability for consumers.
One of the chief advancements revolutionising FMCG logistics is warehouse automation. Implementing automated systems and robotics in FMCG warehouses not only enhances storage and retrieval efficiencies but also minimises errors, ensuring that perishable products reach their destinations in optimal condition. These state-of-the-art technologies provide the agility that FMCG companies need to adapt to ever-changing market demands and consumer preferences.
The Key Components of FMCG Logistics
FMCG logistics, given the nature of products, has unique operational challenges and requirements. Here are the key components:
Component | Description |
---|---|
Inventory Management | Ensuring optimal stock levels and management of batch/lot codes, minimising wastage, especially for perishables, while avoiding stock-outs. |
Distribution Network | Efficient and cost-effective routes, using third parties where relevant, to transport goods from manufacturers to retailers, considering product shelf life. |
Warehouse Management | Optimal and efficient storage solutions, especially for perishables, ensuring products are easily accessible for rapid distribution. |
Transportation | Quick and efficient transportation methods, with the capability to deliver distribute to large and small retailers, as well as Direct-to-Consumer (D2C) in some cases. |
Order Processing | Efficient systems to receive, process, and fulfil orders with minimal delay. |
Retailer Collaboration | Working closely with retailers for sales forecasts, promotional activities, and any specific requirements. |
Technology Integration | Utilising state-of-the-art systems for tracking, monitoring, and predictive analysis to stay ahead in the market. |
Value-added Services | Efficient solutions to supply additional services to retailers by relabelling products, kitting multiple items or supplying filled visual display units. |
Reverse Logistics | Handling returns, especially of defective, seasonal or expired products, in a cost-effective manner while adhering to regulations. |
Transform Your FMCG Business with BoxLogic
In the evolving FMCG landscape, traditional networks and methods may not always suffice. The rise of smaller brands, increasing competition, and the ever-present challenges of ensuring product freshness and availability require innovative strategies and solutions. With BoxLogic’s expertise:
- Re-design and optimise your network to drive down costs
- Enhance product movement for speed, accuracy, and customer satisfaction
- Revamp warehouse operations for peak efficiency and proactive performance management
- Minimise wastage and unnecessary touchpoints
- Serve an increasingly diverse customer base at a lowered cost
- Adapt swiftly to changing market conditions and demands
How Box Logic Can Help
BoxLogic supports ecommerce businesses to build efficient and reliable logistics operations through the:
- Design and optimisation of the warehouse layout and processes
- Assessment of warehouse and site requirements of a new facility
- Evaluation of warehouse automation technologies across picking, packing and sortation
- Design, selection and implementation of warehouse and logistics systems
- Outsourcing and tendering of efulfilment or transport activities
- Location analysis and distribution network design
- Driving operational synergies between ecommerce and other channels
- Benchmarking operational performance and costs
- Cost-to-serve analysis of ecommerce channel fulfilment
We Have Delivered FMCG Projects With:
Why Choose BoxLogic for FMCG Logistics
Unparalleled Analysis: Dive deep into every facet of your supply chain, from warehouse operations to transportation, driving insights into labour, product range, and potential opportunities.
Trendspotting: Stay ahead of industry shifts with BoxLogic’s extensive access across sectors, spotting trends and adapting to them.
Specialised FMCG Expertise: Benefit from dedicated assistance in network logistics planning, warehouse operations improvement, and warehouse design, ensuring maximised efficiency and reduced costs.
Speak to aN FMCG Logistics Expert Today
Call us on +44 (0)118 309 4030
to speak to a BoxLogic consultant about your FMCG logistics project requirements
Frequently Asked Questions
A typical FMCG warehouse setup includes:
- High-density storage systems
- Temperature-controlled zones for perishables
- Fast-moving pick faces for popular items
- Automated material handling equipment
- Cross-docking areas for rapid throughput
- Advanced warehouse management systems
- Batch tracking and expiry date management
- Efficient loading bays for quick turnaround
This setup prioritises rapid stock rotation and efficient order fulfilment.
An FMCG order typically consists of:
- Multiple product lines in varying quantities
- A mix of fast and slow-moving items
- Products with different handling requirements
- Short lead times for delivery
- Frequent, repetitive orders from retailers
- Potential for promotional items or seasonal variations
- Specific delivery time windows
Orders are often large in volume but relatively low in individual item value.
FMCG goods are typically distributed through:
- Direct store delivery (DSD) for high-volume retailers
- Centralised distribution centres for major chains
- Wholesalers for smaller retailers
- E-commerce fulfilment for online orders
- Multi-drop routes for efficient local delivery
- Cross-docking to minimise storage time
- Just-in-time deliveries to reduce retailer inventory
- Collaborative planning with retailers to optimise stock levels
The focus is on frequent, efficient deliveries to maintain product availability and freshness.