All you need to know about managing a FMCG logistics supply chain

Most people are familiar with the term FMCG, meaning Fast-moving Consumer Goods. These are the products which are sold at a low cost. Most of the products in this category are packaged foods, cosmetics, dry goods, toiletries, beverages etc. And, the FMCG and consumer electronics industry are known for a high percentage of returns. 

Reasons for that could be multiple– damaged, unsold products, or others. To streamline the goods' supply chain, it is essential to understand the in-depth aspects of logistics for single-point solutions. Here, FMCG logistics plays a vital role.

 

Features of FMCG products: -

· The ones that get sold fast

· Mass consumption

· High volumes

· Extensive distribution

· Range of the products should be low to medium

· Shorter shelf life

Today, it is easy to notice a major paradigm shift where the purchase of these FMCG goods is concerned, as mainly everything can be ordered online, without requiring any physical presence at the store. The logistics team is the ninja architect of the business as they are the brainchild behind the seamless, efficient transportation of the goods from one place to another. They deliver goods in the most regimented and synchronized manner.

Apart from transportation, logistics also encompasses inventory, packaging, social security, supplying and sometimes warehousing. Safexpress, a market leader in supply chain and logistics, offers solutions from warehousing to timely distribution of goods in PAN-India. The 'Stock2Shelf' service provided by Safexpress is swift, cost-effective strategy that responds to stock shortage at retail stores by transporting products from the feeder warehouse within the set time limits. 

It helps to shorten the order-to-delivery time, avoid maintaining high inventories and setting up of warehouses near retail stores. Safexpress, with their expertise for efficient last-mile delivery and reverse logistics would be able to provide an ideal logistics solution for companies dealing with FMCG products.  

Hence, logistics professionals manage how resources are obtained, stored, and supplied to their destination. This means that the FMCG logistics team must be the one to meet the requirements of the customer in a timely, cost-effective, and efficient manner.

 Following are the features of such a logistics team: -

· Transportation of low margin, high distribution network goods

· The right selection of wholesaler, distributor, and retailer

· Timely delivery of goods at the warehouse

· Taking into consideration the transportation costs and safety

· Calculating the maximum safe stacking height

· Permissible method of placement of fragile materials

In addition to all these, they also have a fleet management system which allows one to control the transport of the goods from the moment the cargo is collected from its delivery location. Some logistics companies also use an application, from which one can track down the location using the GPS. The dispatcher can receive information about the flow of the traffic along the route in real-time.

 Electronic logistics

E-logistics or electronic logistics is the mechanism of automating logistics, thereby providing an integrated, end-to-end fulfillment, and supply chain management services to the stakeholders of logistics processes.

Implementation of E-logistics:

For smooth and efficient implementation of e-logistics, it is always better to include multiple steps in the plan. It will help in reducing the chances of error at an early stage. Below are some tips that can help you manage your logistics effectively to ensure a smooth supply chain:

· Make a foolproof plan

· Keep an incidental plan handy

· Engage a logistics manager who possesses strong interactive skills

· Include automation wherever possible

· Address your mistakes seriously and learn from such opportunities

Thus, managing both FMCG logistics and electronic logistics processes involve effective problem-solving capabilities, skills, adaptability, ability to manage stress, flexibility, leadership skills, etc. Logistics managers need to be aware of the latest innovations and automation's to make the process as accurate, efficient and smooth as possible.

A brief overview of the automotive logistics industry in India

Automotive logistics refers to the warehousing and transportation of spare parts, production material and finished vehicles in the automotive supply chain.  The automotive logistics industry is fragmented in nature, with the presence of large global players as well as medium-sized and small-sized local players. 

Most of the global logistics players have an automotive logistics division to meet the market needs and demand. Local players are increasingly enhancing their capabilities in terms of inventory handling, service offerings, products handled, and technology, to cater to the automotive industry.

The automotive industry is constantly evolving, and with the introduction of electric vehicles, the demand for automotive logistics is constantly increasing. And any forward-thinking logistics company in India needs to develop supply chain strategies, in order to exploit new market opportunities, reduce costs, and maintain competitive advantage. 

Safexpress, a leading logistics provider, with its vendor managed inventory are able to maintain high level, detailed view of stocks available at the vehicle manufacturer and also ensures coordination with OEMs to maintain sufficient stock of components. The transportation management system of Safexpress is able to provide customers with visibility and real-time data of their deliveries. The ‘Express Distribution’ service of Safexpress is able to serve dealers and centers across the country with the required parts thus ensuring on-time deliveries.    

Types of automotive logistics

The market for automotive logistics has been segmented into finished vehicle and automobile parts. The automobile parts segment leads the market, which includes revenue generated from the logistics of spare parts from both the automobile manufacturer as well as aftermarket. Owing to stringent regulations related to carbon emission, a market for upgraded standard aftermarket parts for the existing vehicle fleet has been generated. This has helped in supporting the growth of the automobile parts’ segment.

The finished vehicle segment includes the revenue generated from the logistics of the finished vehicle. And this segment is estimated to expand owing to the rising demand for low emission vehicles and electric vehicles. This demand is attributed to favorable government initiatives, which include the availability of tax relief from the purchase of these vehicles. The rising demand for electric vehicles is also expected to boost the finished vehicle segment growth.

Transformation of Indian automotive logistics

The Indian automobile industry is a major contributor to the Indian economy and the fourth largest automobile market in the world. The Indian automotive supply chain is undergoing various changes like regulatory demand of BSVI engines and promoting the usage of electric vehicles. 

The industry is experiencing change in existing logistics trends, automation and on-time delivery demand, with major changes in the modes of transport used for freight transport and infrastructure support. While the main mode of transport for automotive logistics is by road, initiatives to use rail, water or air modes are increasing, as they help to lower overall costs.

Automotive logistics providers are also investing in technologies like Big Data and Connected Ship, to enhance their supply-chain management processes. These technologies aid in reducing labor costs, by making use of predictive assessment on routing, which eliminates delays in shipments.

In conclusion

The automotive logistics industry is expected to witness massive growth by improving connectivity, distribution networks and implementing new technology to track shipments. Earlier, automobile manufacturers incurred high cost of inventory due to the storage of automotive components and systems. 

Now, by adopting strategies like Just in time (JIT), they can eliminate the cost related to all sources, unnecessary inventory and scrap in production. Implementation of JIT is done with the help of an effective supply chain and an efficient automotive logistics system.

How logistics companies in India managed operations continuity amid COVID-19

 

COVID-19 pandemic stunned the world economies on a short notice and affected smooth operations of big and small businesses in all sectors as it scaled. But even in those unprecedented times, there were some essential industries such as logistics, where companies were operational on the field bearing risk of virus everyday. 

As the time moved, it was understood that the only choice left was to ‘live with the virus’ while staying safe from it. 

One of the top logistics companies in India, Safexpress, adroitly managed business continuity to ensure stable, secure and effective work flows in such challenging times by working in a pro-active and planned manner.

The company ensured utmost safety of its staff and retained the custodianship of customers’ consignments during the pandemic. The quick decision making, continued connect through internal & external communications and swift actions really changed the current adversity into opportunity for Safexpress.

 

On the ground level, practical challenges were often faced by the team such as employees turning up with sub-optimal health conditions that disrupted the planned roster. Working on a skeletal team made it challenging to achieve operations efficiencies, but the challenges were seized when the government released the APIs for the Arogya Setu app, Safexpress took the opportunity of unifying the application with Arogya Setu that helped immensely to track the health and risk profile of employees on real-time basis. This allowed better planning as it was able to keep a check on employees at risk in the roster and avoid last minute confusions.

 

To execute smooth operations continuity in all the regions amidst the crisis, Safexpress prioritize its critical resources i.e. workforce, network, partners and ensured their continuity by providing 100% safe & healthy environment and development without any compromise with clear objectives in mind to serve its customers' supply chain and logistics needs and to support the country's economy by keeping it's wheels running.

 

It also digitally transformed its operations & transactions to minimize the risk of physical contact and incorporated cloud-based systems that facilitated Work From Home for most of the workforce. Safety & security of employees, staff, premises and customers’ consignments was ensured by ‘no-contact’ deliveries, promoting digital payments, regular sanitization, daily thermal screening of those coming at work and religiously following all the guidelines mandated by the Government of India.

 

The ongoing pandemic has changed the delivery operations for the entire industry including the top 10 logistics companies in India, if not forever but for a long time coming. To avoid the spread of COVID-19, customers today are shifting their loyalty towards businesses that are guaranteeing ‘zero contact’ delivery and digital payments. Logistics companies in India have planned out their execution of operations based on the same idea as it its new but fortunately, not hard to achieve.