CARGOCONNECT-APRIL2025 - Flipbook - Page 31
to very critical.” He emphasises the paradigm shift
from e-commerce to quick commerce, where impulsive
buying and dynamic demand analysis are driving the
need for agile deliveries. “Since the quick commerce
market contributes 35% of overall revenue for FMCG,
it needs to be viewed closely. Any missed opportunity
should be treated seriously, as customer tastes can
change in no time,” he adds.
Pran Raj, VP– SCM, Devyani International,
expands on this by underscoring the growing pressure
on FMCG companies to meet rising consumer expectations. “The demand for quicker turnarounds in FMCG
logistics has been on a signi昀椀cant upward trajectory
in recent years, driven by consumer expectations,
e-commerce growth, and technological advancements,”
he explains. He stresses that companies must adapt to
these pressures by delivering faster and more e昀케ciently
while maintaining quality. “Companies that can balance
speed, e昀케ciency, and quality will have a competitive
edge in the market,” he adds.
Vishal Garg, Head of Supply Chain Management
at CG Corp Global sheds light on the cost pressures
facing the industry and the strategies to address them. “As margins in
the industry continue to shrink, managing logistics costs has become
increasingly crucial, especially since logistics is the fourth highest cost
component of a product,” he explains. To tackle this, companies like CG
Corp are adopting a regionalised approach. “For us, establishing multiple
plants across all four major regions allows for quicker response times
to demand and minimises the distance goods need to travel,” he says.
“Additionally, shipping locations are being strategically planned within a
400-kilometer radius to reduce transportation costs and improve delivery
times,” Garg adds.
Raj further elaborates on the role of technology in optimising supply
chains. “FMCG companies are increasingly investing in technologies
like AI, IoT, and automation to speed up their operations,” he states.
Real-time tracking, optimised route planning, and predictive demand
analytics are enabling faster and more e昀케cient supply chains. “The
need for just-in-time inventory management has also become more
pronounced, requiring faster restocking and quick turnover at each
point in the supply chain,” he adds.
For FMCG products, especially perishable goods, speed is not just a
competitive advantage but a necessity. Pran Raj explains, “Many FMCG
products, especially food and beverages, have a limited shelf life. Speed
is crucial in ensuring that products move quickly from manufacturers to
CARGOCONNECT APRIL 2025 | 31
