CARGOCONNECT-APRIL2025 - Flipbook - Page 35
FMCG LOGISTICS : SPECIAL FEATURE
SURYA KANTA DASH
Vice President– Supply Chain
Head- PBG, Reliance Retail
From my understanding, the supply
chain involves the dynamic interaction
between demand and supply. Demand is
typically unconstrained, while supply is
constrained. This principle is critical for
all business models, whether they are
solution providers, service providers,
or manufacturers. 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 efficient supply chain
from production to the final consumer.
Megha also highlights the importance of dynamic
metrics. “Metrics must evolve with the organisation’s
growth and changing priorities. For instance, after
achieving 10x to 20x growth, the focus should shift to
granular metrics like 昀椀ll rate, cancellation rates, and
logistics provider performance,” she explains, and
notes, “This adaptability ensures that metrics remain
relevant and actionable for both management and
operational teams.”
Keyur Doshi provides a real-world example of how
data analytics can optimise inventory. “By leveraging
advanced data analytics, companies can track demand
patterns and 昀椀ne-tune inventory levels to market needs,”
he explains. This approach minimises overstocking,
reduces spoilage in perishable goods, and ensures that
store shelves are stocked with customer favourites.
Balancing speed and e昀케ciency in FMCG logistics
is not a one-time achievement but an ongoing process,
which requires a holistic approach that combines
advanced technologies, strategic inventory management,
and strong supplier relationships. By leveraging AI, JIT
systems, inventory segmentation, and real-time data
analytics, companies can achieve high turnover rates
while minimising excess inventory.
As Doshi re昀氀ects, “Inventory optimisation is key
to maintaining just the right level of stock to meet
昀氀uctuating demand.” This approach, combined with
strategic sourcing, localised storage, technological
innovation, and collaborative strategies, ensures that
FMCG companies can meet consumer demand e昀케ciently
while maintaining cost-e昀昀ectiveness.
Leveraging 3PL Services for
Maximum Impact
and ful昀椀lment capabilities,” he explains. “By investing in e昀케cient storage
solutions and leveraging in-house facilities at each plant, companies can
respond quickly to local demand 昀氀uctuations. This proactive approach
prevents stockouts and reduces excess inventory, enhancing overall supply
chain performance,” he clari昀椀es.
Garg also highlights the strategic use of their in-house storage facilities
at each plant. “By having dedicated storage facilities within each plant, we
are able to better handle the speci昀椀c inventory needs of each location. This
setup allows us to maintain adequate stock levels close to production sites,
reducing the time and cost associated with transporting goods between
central warehouses and production facilities,” he explains. “This localised
approach not only improves e昀케ciency but also ensures faster response
times to demand changes,” he attests.
Megha Bansal, VP– Network Governance, Open Network for Digital
Commerce (ONDC), operating under the Department for Promotion of
Industry and Internal Trade (DPIIT), provides a unique perspective on
how inventory management metrics must evolve with an organisation’s
growth. “In a startup environment, the focus is on growth-oriented
metrics, even if it means compromising on customer experience or cost
reduction,” she explains. “As the organisation matures, the focus shifts
to unit economics and cost e昀케ciency. The Supply Chain Management
(SCM) team must distinguish between what management requires and
what the operational team needs on the ground,” she notes.
Be it any consumer-serving industry, Third-Party
Logistics (3PL) services have become indispensable for
companies looking to enhance e昀케ciency, scalability, and
customer satisfaction. By outsourcing logistics functions
to 3PLs, FMCG businesses can tap into specialised
expertise, advanced technology, and optimised processes,
enabling them to focus on core competencies while
ensuring seamless supply chain operations.
Narayan Prasad emphasises the strategic importance
of 3PL providers in understanding market dynamics
and delivering cost-e昀昀ective solutions. “3PL is one of
the closest partners when it comes to understanding market dynamics. Without a proper bottom-up
strategy cascade with 3PL, it’s difficult to manage
both e昀케ciency and speed simultaneously,” he explains.
Prasad highlights the role of 3PLs in addressing nonconsistent demand 昀氀ows and delivering cost-optimum
solutions. “SKU management has become an integral part of FMCG business, and proactive resource
planning is always an ask from 3PL providers. In my
view, 3PLs should be treated as integrated business
partners and actively involved during annual strategy
planning,” he states.
Bringing a slightly di昀昀erent perspective, Keyur Doshi
says, “3PL, which stands for third-party logistics, may
also be termed as order ful昀椀lment. The reason being,
a 3PL warehouse provides a full range of e-commerce
ful昀椀lment services, including storage, order processing,
CARGOCONNECT APRIL 2025 | 35
