Fast-moving consumer goods (FMCG) are the largest collection of consumer goods, including a wide range of products in the health, home, personal care, food, drink, and daily needs and many more.

The major factors driving the consumer goods industry are the ease of access, changes in lifestyle and quick changes in consumption habits. Customers anticipate finding a large variety of products online. To accomplish this, businesses that sell consumer goods integrate their efficient, adaptable, and sustainable global supply chains. Fast-moving consumer goods manufacturers depend on end-to-end logistics management to deliver products more quickly and cost-effectively. These manufacturers operate multiple supply chain operations involving inventory management, transportation, distribution networks, warehousing, and forecasting demand to meet customer demands. 

Basically, most FMCG logistic companies operate on a hub-and-spoke model, which provides customers with faster deliveries. A hub-spoke model is a centralised storage and delivery system like the design of a bicycle wheel. Where the centre of the wheel represents delivery centre, and each spoke denotes the delivery direction. Therefore, we normally witness that most FMCG logistic companies’ storage is situated in cities in order to provide fast delivery to customers. In addition, FMCG companies outsource their logistic operations to keep everything in order – sales planning, operational processes, forecasting, inventory management and deliveries.

Overview of the FMCG Industry

FMCG’s products have a short shelf life. Due to high customer demand, these products, which are referred as consumer packaged goods (CPG), have a short durability and a fast turnover. In other words, FMCG products are called fast-moving because of their short business cycles.

The FMCG industry involves various products that are produced and consumed on a high scale such as food, beverages, cosmetics, cleaning, personal hygiene items, over-the-counter medicine, office products, and other consumables that people normally use. It also involves seasonal Items advertised or sold at a particular time of the year. 

The FMCG sector includes various industries such as fashion, food, pharmaceuticals, etc. According to Statista.com, a leading market research firm, by 2025, India’s FMCG market will increase to $220 billion. 

Nevertheless, FMCG is known for their low acquisition cost. The low market value of these products compels businesses to cut production, storage, and distribution costs in order to remain price competitive. 

Logistic Operations in the FMCG Industry

FMCG has a high turnover rate, requiring agile logistical procedures. Additionally, logistics centres must ensure complete access to the products held in order to execute delivery effectively because some products lose their qualities over time.

FMCG products not only require ideal safety and productivity conditions in operations like storage and transportation but often raise difficulty for order deliveries. Beyond stock management issues, this industry struggles with short lead times because of things like e-commerce delivery requirements and the high demand for t stored products.

Logistic operations have become more difficult as a result of omnichannel’s growth in the FMCG sector. Optimising the user experience while processing a higher sales volume and managing orders across multiple channels are the requirements for omnichannel logistics. While doing this, you need not increase the logistics cost of products. Therefore, ensuring product’s traceability is crucial in the FMCG industry. One solution companies choose to increase their grip over inventory in real-time is to install a warehouse management system (WMS), which plays an important role in the entire supply chain. 

The FMCG industry demands efficient logistics processes

The complexity of logistic operations in warehouses handling FMCG products has increased with the emergence of new sales channels like e-commerce and the omnichannel engagement with the target customer. As a result, an increasing number of businesses are investing in automated and digital solutions that optimise and speed up the storage and delivery of products.

Using technologies like warehouse management systems (WMS) increases control over logistical operation, reduces the possibility of error, and ensures the timely delivery. 

Conclusion

The FMCG market has a high turnover rate and is highly competitive. Many FMCG brands focus on marketing fast-moving consumer goods to attract customers to purchase their products. If you are a business owner dealing in FMCG products and want them to be delivered to your customers’ doorstep, contact handover. It’s a leading delivery service company in India that delivers FMCG products and other stuff through its wide range of logistics fleet.