CARGOCONNECT-APRIL2025 - Flipbook - Page 33
FMCG LOGISTICS : SPECIAL FEATURE
* Blockchain: Enhanced traceability and transparency are building trust across the supply chain,
particularly for sensitive products like food and
pharmaceuticals.
Pran Raj echoes this sentiment, stating, “Technology
is a game-changer in FMCG supply chains. By leveraging
automation, data analytics, AI, IoT, Blockchain, and
other innovations, FMCG companies can signi昀椀cantly
enhance the e昀케ciency, visibility, and 昀氀exibility of their
supply chains.” He adds that these advancements lead to
reduced operational costs, faster service, and improved
customer satisfaction.
Raj particularly highlights the importance of
advanced forecasting tools in optimising supply chains.
“AI-powered demand forecasting tools are enabling
companies to predict consumer demand with greater
accuracy by analysing data from various sources, such
as sales trends, social media, and economic indicators,” he says. Collaborative planning platforms are
also facilitating better alignment between suppliers,
manufacturers, and retailers, ensuring that the right
products are available at the right time.
Similar sentiments are echoed by Vishal Garg, who
shares insights into how advanced AI-based technology is revolutionising demand tracking and supply
management. “We are integrating AI-based technology
to analyse vast amounts of data, providing real-time
insights into customer preferences, purchasing patterns,
and inventory levels,” he explains. This enables more
accurate demand forecasting and optimised supply
chain management.
Garg also highlights the importance of in-house
mechanisms for tracking operational metrics. “We have
developed an in-house system to monitor processes in
real-time, ensuring high standards of accuracy and
reliability,” he says. Integration with customers’ databases
and ERP systems is further enhancing visibility and
enabling seamless communication.
Raj delves deeper into the role of automation in
warehousing. “Warehouse automation, including
robotics and automated systems, is streamlining tasks
like sorting, picking, packing, and storing products,”
he explains. This reduces human error, speeds up
operations, and lowers labour costs. Automated Guided
Vehicles (AGVs) are also being used to move goods
more quickly and safely within warehouses, improving
overall productivity.
Further, Raj highlights the importance of advanced
forecasting tools in optimising supply chains. “AI-powered
demand forecasting tools are enabling companies to
predict consumer demand with greater accuracy by
analysing data from various sources, such as sales
trends, social media, and economic indicators,” he says.
Collaborative planning platforms are also facilitating
better alignment between suppliers, manufacturers,
and retailers, ensuring that the right products are
available at the right time.
Transportation Management Systems (TMS) and
Warehouse Management Systems (WMS) are playing
a critical role in enhancing e昀케ciency. “A TMS helps
companies plan, execute, and optimise transportation
operations, providing visibility into shipment status and
PRAN RAJ
Vice President– SCM,
Devyani International
The need for just-in-time inventory
management has become more pronounced, requiring faster restocking and
quick turnover at each point in the supply
chain. Many FMCG products, especially
food and beverages, have a limited shelf
life. Speed is crucial in ensuring that
products move quickly from manufacturers to retailers or directly to consumers.
The rise of instant gratification 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 FCs, and automated
facilities to reduce the distance between products and consumers.
optimising routes,” explains Raj. Similarly, WMS automates warehouse
processes, ensuring e昀케cient inventory tracking, order processing, and
stock optimisation.
As technology continues to evolve, its impact on FMCG logistics is
becoming even more profound. Raj agrees, and adds, “Emerging tools
like Augmented Reality (AR) and Virtual Reality (VR) are being used
for warehouse management and employee training, while collaborative
platforms and Electronic Data Interchange (EDI) are streamlining communication between suppliers and buyers.” These advancements are not
just addressing current challenges but are also laying the groundwork
for a more agile and responsive supply chain.
At its core, technology is driving the transformation of FMCG
logistics. By embracing automation, AI, IoT, Blockchain, and other
groundbreaking technologies, companies can boost e昀케ciency, cut costs,
and enhance customer satisfaction. As Keyur Doshi rightly points out,
“Changing times demand new measures and innovations to keep up
with the challenge.”
Managing Turnover Rates and Minimising
Excess Inventory
In the FMCG industry, striking the right balance between high turnover
rates and minimising excess inventory is a critical challenge. With
consumer demand fluctuating rapidly and the perishable nature of
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