FMCG Supply chain management Solutions

 Logistics is widely known as the process of coordinating and moving resources, such as equipment, food, liquids, inventory, materials, and other products, from one location to the storage or the desired destination. It is the management of the flow of goods from one point of origin to the point of consumption to meet the requirement of customers. FMCG logistics management focuses on the efficiency and effective management of daily activities concerning the transportation of daily usable goods from one place to another. 

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The global FMCG logistics market is driven by factors, such as growing penetration of e-commerce in the FMCG logistics industry, changing lifestyles, rapidly evolving consumer habits, growth in disposable income, rise of tech-driven logistics services, and growing adoption of IoT-enabled connected devices. Moreover, poor infrastructure & higher logistics costs and lack of control of manufacturers and retailers on logistics service hamper the growth of the global market. However, last mile deliveries, logistics automation, cost cutting, and lead time reduction due to the adoption of multi-modal system are expected to offer lucrative opportunities for the growth of the global FMCG logistics market.

E-commerce refers to the buying and selling of goods by using internet. It is reshaping the global retail industry due to its facility of providing visibility of inventory status, expected delivery time, and a variety of shipping options, including tracking options and easy returns. In addition, online grocery stores and retailers, such as Big Basket, Flipkart, and Amazon, help FMCG products to be easily available with different discounts, festive sales, and same-day delivery options to consumers

Changing technological trends and implementation in FMCG application have completely changed the FMCG logistics market. Companies started integrating new-age technologies, such as IoT, robotics, analytics, and Big Data, into their FMCG supply chain. The implementation of modern technology, such as drone delivery, in logistics has also reduced the lead time and inventories for FMCG companies, thus fulfilling their demand for customization and fast delivery. For instance, in September 2019, FedEx collaborated with Wing Aviation LLC, an Alphabet company, and Walgreens, a retail pharmacy company, to launch a first-of-its-kind drone delivery service in Christiansburg, Virginia. Moreover, increasing penetration of IoT in the logistics sector enables freight companies and consumers to directly access real-time information via internet. Therefore, the implementation of tech-driven logistics services is expected to help FMCG companies to optimize their assets efficiently, thereby propelling the growth of the FMCG logistics market.

Reduction in cost of transportation and timely delivery of consumer goods, such as perishable items and groceries, pose a challenge to logistics service providers. Logistics companies have the opportunity to use multi-modal transportation system due to rising amount of orders to be delivered in limited time. Multi-modal transport uses the most efficient combination of transport modes, keeping the freight costs down to increase the efficiency of the supply chain. For example, APL Logistics provides ShipMax solution to its customers. It includes pairing with compatible trucking partners as well as allowing customers to take advantage of better load utilization and delivery optimization, thereby enabling customers to maximize transportation budget. Therefore, cost cutting and lead time reduction by adopting multi-modal system pose exponential growth opportunities for the key players operating in the FMCG logistics market.

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