CARGOCONNECT-APRIL2025 - Flipbook - Page 36
SPECIAL FEATURE : FMCG LOGISTICS
KEYUR DOSHI
General Manager– Logistics and
warehousing, Vadilal Industries
Inventory optimisation helps FMCG
businesses maintain just the right level
of stock to meet fluctuating demand.
Advanced tools like IoT-enabled devices
and RFID tags provide real-time tracking, while automated replenishment
systems ensure timely restocking. Key
metrics like stock turnover ratio, Days
Inventory Outstanding (DIO), and service
level are critical indicators of inventory efficiency. Understanding and
categorising fast-moving, slow-moving, and non-moving items based
on sales patterns and production complexities is essential for effective
inventory management.
shipping, and receiving,” he explains. Underscoring the importance of
technology in 3PL operations, he highlights the need for proper visibility and
communication for smooth operations. “The solution lies in digitalisation.
Advanced technologies like real-time tracking and inventory management
systems are critical for ensuring seamless logistics operations,” he adds.
Pran Raj delves into the multifaceted bene昀椀ts of 3PL services. “3PL
providers signi昀椀cantly enhance the e昀케ciency and speed of FMCG supply
chains by o昀昀ering expertise, advanced technology, 昀氀exibility, and optimised
processes,” he explains, and outlines several ways 3PLs contribute to
supply chain performance:
* Scalability and Flexibility: 3PLs allow FMCG companies to scale
operations up or down based on demand 昀氀uctuations, ensuring agility
and responsiveness.
* Advanced Technology: Automation, robotics, and real-time inventory
management systems streamline operations, reduce errors, and
improve speed.
* Global Reach with Local Expertise: 3PLs provide access to a global
network of warehouses and distribution centres, enabling faster and
more localised ful昀椀lment.
* Cost E昀케ciency: Consolidated shipments and economies of scale help
reduce transportation and warehousing costs.
Further, Raj highlights the expanded role of 3PLs in faster order
ful昀椀lment and risk management. “Optimised distribution networks and
36 | CARGOCONNECT APRIL 2025
real-time order tracking ensure quicker delivery times,
while contingency planning and compliance management
minimise disruptions,” he says.
Vishal Garg emphasises the importance of selecting the right 3PL partners to meet speci昀椀c logistical
needs. “To meet speci昀椀c logistical needs, companies
are partnering with specially developed logistics
providers. These partners are selected based on their
ability to meet precise requirements, ensuring that
logistical operations align with the company’s strategic
goals and operational needs,” he explains. He also
highlights the importance of On-Time In-Full (OTIF)
delivery as a key performance metric. “Enhancing
OTIF ensures that products are delivered on schedule
and in the correct quantities, which is essential for
maintaining customer satisfaction and operational
e昀케ciency,” Garg noti昀椀es.
Further, Garg discusses the integration of national
and regional logistics players to optimise delivery times
and costs. “By leveraging the strengths of both national
and regional logistics providers, companies can achieve
a well-rounded logistics strategy that balances broad
coverage with localised service,” he explains. Garg
cites examples of national players like Om Logistics
and regional providers like GS Transport, which o昀昀er
tailored solutions to meet diverse requirements.
Surya Kanta Dash provides a unique perspective on
selecting 3PL partners. “When selecting partners, it’s
crucial to approach them not as mere service providers
but as solution providers. This mindset is the foundation
of a sustainable, long-term partnership,” he explains,
and furnishes three essential criteria for partnering
with 3PLs:
* Multi-client facilities: Flexibility to manage seasonal
demand 昀氀uctuations.
* High-performance standards: Ability to handle
varying scales of business e昀昀ectively.
* Expandable storage: Adjustable storage capacity
based on changing needs.
Dash also highlights the challenges of reverse
logistics. “Handling product returns, such as picking
up a refrigerator from a consumer’s home, is a logistical
challenge. Developing a robust system for reverse logistics
is essential for maintaining customer satisfaction and
optimising the overall supply chain,” he adds.
Leveraging 3PL services is no longer just an operational decision but a strategic imperative for FMCG
companies. By treating 3PL providers as integrated
business partners, investing in advanced technologies,
and building sustainable relationships, companies can
achieve greater e昀케ciency, scalability, and customer
satisfaction.
In the fast-evolving world of FMCG logistics, 3PLs
are not just service providers but key enablers of success. Narayan Prasad couldn’t agree more, and went
on to express, “3PLs should be actively involved in
annual strategy planning to ensure alignment with
business goals.”
Optimising the Final-Mile
The 昀椀nal-mile delivery phase is often the most complex
and costly part of the supply chain, yet it is also the
