CARGOCONNECT-APRIL2025 - Flipbook - Page 32
SPECIAL FEATURE : FMCG LOGISTICS
NARAYAN PRASAD
Category Lead– Supply Chain Procurement,
Mars International
Speed with first-time-right has been a
conventional task in FMCG industries.
Above this, we are now experiencing
an era where end customers have
numerous options at their fingertips,
making speed critical to very critical.
The paradigm shift from e-commerce
to quick commerce is being driven by
impulsive buying behaviour and dynamic
demand analysis 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.
retailers or directly to consumers.” Delays can result in spoilage, rendering
products unsellable and impacting pro昀椀tability. To address this, companies
are focussing on regional distribution hubs and micro-ful昀椀lment centres
to minimise transport time and ensure freshness.
Surya Kanta Dash, VP– Supply Chain Head– PBG, Reliance Retail
o昀昀ers a unique perspective on the interplay between demand and supply
in the digital age. “From my understanding, the supply chain involves the
dynamic interaction between demand and supply. Demand is typically
unconstrained, while supply is constrained,” he explains. This principle,
he reiterates, is critical for all business models, whether they are solution
providers, service providers, or manufacturers.
Dash also highlights the challenges of managing low-volume demand
in a digitalised environment. “In my case, I am currently involved in
manufacturing various products through contract manufacturers, rather
than traditional manufacturing. The challenge I face today is managing
the complex mix of low-volume demand while ensuring an e昀케cient supply
chain from production to the 昀椀nal consumer,” he says.
Providing a forward-looking perspective, Pran Raj explains, “The future
of FMCG logistics will likely be shaped by innovations that continue to
speed up deliveries while balancing cost, sustainability, and reliability,” he
predicts. He highlights the growing importance of subscription services,
Direct-To-Consumer (DTC) models, and automated facilities in meeting
consumer demands for faster turnarounds. “The rise of instant grati昀椀cation
32 | CARGOCONNECT APRIL 2025
culture means that consumers expect products to be
delivered in a matter of hours, not days. Companies
must respond with strategies like local warehouses,
micro-ful昀椀lment centres, and automated facilities to
reduce the distance between products and consumers,”
he adds.
Simply put, the rising importance of speed in FMCG
logistics is undeniable. With consumer expectations
rapidly evolving, companies must prioritise agility,
leverage technology, and optimise their supply chains
to stay competitive. Above all, collaboration and
innovation will be the driving forces behind success.
As Narayan Prasad says, “Coming together is the
beginning, keeping together is progress, and working
together is success.”
The Crucial Role of Technology in
Enhancing Ef昀椀ciency
In the fast-paced world of FMCG, technology has emerged
as a game-changer, driving e昀케ciency, visibility, and
昀氀exibility across supply chains. From demand forecasting to 昀椀nal delivery, innovative technologies are
transforming operations, enabling companies to meet
evolving consumer expectations and stay competitive.
Narayan Prasad emphasises the pivotal role of technology in every aspect of the supply chain. “Technology
is playing a pivotal role in every aspect of the supply
chain, from demand management to final delivery.
There is always space for improvement, which is being
addressed by robust technologies,” he explains. Key
areas where technology is making a di昀昀erence include:
* Demand Management: AI-driven planning tools
are enabling more accurate demand forecasting,
ensuring that companies can align production and
inventory with consumer needs.
* Order-to-Cash (O2C): Faster order processing
and return management systems are streamlining
operations, reducing delays, and improving customer
satisfaction.
* Transport Management Systems (TMS): E昀昀ective dispatch planning and control are optimising
transportation logistics, ensuring timely deliveries.
* Sourcing Tools: Platforms like Ariba and Kelver are
helping companies leverage market opportunities
and improve procurement e昀케ciency.
Keyur Doshi, General Manager– Logistics and
Warehousing, Vadilal Industries, highlights how
technology is revolutionising supply chain management. “Technology has revolutionised supply chain
management by automating processes, increasing
visibility, enabling real-time reporting and data analysis,
enhancing communication, and optimising decisionmaking,” he says. Emerging technologies like Internet
of Things (IoT), Arti昀椀cial Intelligence (AI), Machine
Learning (ML), Blockchain, and robotics are driving
this transformation:
* IoT and Smart Sensors: Real-time tracking of goods
and monitoring of conditions like temperature and
humidity ensure product quality and reduce waste.
* AI and ML: Predictive analytics and optimised
routing are improving demand forecasting and
delivery e昀케ciency.
