The Fast Moving Consumer Goods and Fast Moving Consumer Durables industries are some of the most consequential ones that the modern economic structure plays host to, and while it is the manufacturing side of things that is often studied, FMCG logistics companies play a no-lesser role in the overall product life cycle.
Effective inventory optimisation in consumer goods logistics is central to ensuring effective operations and healthy profit margins, and with the advent of technological developments and innovations, this is a process that has gone on to become quite a bit more accurate and efficient than what it used to be. The following are some of how the FMCG and FMCD industry is engaging technology through consumer goods logistics companies to attain the desired levels of inventory optimisation.
Technology in consumer goods logistics.
According to MaximizeMarketResearch, the size of the Indian FMCG market stood at $179.94 billion, and if the estimates are to be taken into consideration, the expected CAGRs are going to propel the aforementioned figure well beyond the $1000 billion mark. The FMCD industry is growing at a fast pace as well, and technological integration is turning out to be crucial in maintaining inventories, exactly when and where they are needed.
The integration of real-time tracking:
Real-time tracking, offered by top FMCG logistics companies, helps immensely in knowing when a particular product will arrive at the end locations, how it can be placed effectively, and where exactly they are at any given moment in the overall transit process. Efficient vehicle utilization can turn out to be a task as well, and for any business, not getting the required set of wheels when they are needed doesn’t bode well. By working with an integrated warehousing distribution provider, a fleet of GPS-equipped vehicles that are available when needed can help with inventory optimization.
Data Analytics in inventory optimization.
When it comes to effective inventory management in the FMCG and FMCD industry, the use of big data analytics can help. A 3PL logistics company is well-placed to track the data that are generated by the various stakeholders of the consumer goods logistics process, and once cleaned and analyzed, this data can be used to determine where the product will be required at which point in time, and in what quantities as well. Once such metrics are obtained, the FMCG logistics companies can ensure hurdles like overstocking or stockouts aren’t experienced.
The use of IoT and VR on the warehouse floors.
Consumer goods logistics aren’t restricted to the transportation of the palettes from the warehouses to the shelves, and with the inclusion of rural and e-commerce logistics solutions, the complexities have just gone on to rise further. On the warehouse floors, FMCG logistics companies can employ modern technological developments like IoT, Robotics, and VR. While IoT can be used to know the exact location of the inventory, and their real-time statuses, robotics can be used to aid with efficient transportation of the said goods from one position to another. VR can be used to train the staff to efficiently engage in the various processes, and all these come together to aid with inventory optimization in the FMCG and FMCD industry on an unprecedented scale.
Conclusion
Inventory optimization is essential when it comes to the FMCG and FMCD industry in this day and age. The aforementioned technological integrations through 3PL providers are helping the industries in more ways than one, and for any enterprise engaged in this sector, adopting such measures can help.