CARGOCONNECT-APRIL2025 - Flipbook - Page 37
FMCG LOGISTICS : SPECIAL FEATURE
most critical for customer satisfaction. In the FMCG
sector, where speed and reliability are paramount,
optimizing the 昀椀nal-mile is essential to meet consumer
expectations and maintain competitive advantage.
Narayan Prasad highlights the growing focus on
tier-II cities and the need for innovative solutions to cater
to evolving demand patterns. “In recent years, FMCG
giants have shifted their focus to tier-II cities, where
there is signi昀椀cant scope for expansion. However, the
challenge lies in catering to both traditional trade and
emerging channels like e-commerce,” he explains. He
emphasises the importance of strategic partnerships
and localised solutions. “Small spokes, such as dark
warehouses closer to demand points, are essential for
meeting online demand. Strategic partnerships with
stockists and super stockists can further enhance
昀椀nal-mile e昀케ciency,” he adds.
Highlighting the role of technology in optimising
final-mile delivery, Pran Raj observes, “To ensure
on-time delivery to both urban areas and remote
locations, companies must leverage technology, route
optimisation, local expertise, and 昀氀exibility.” Raj outlines
several strategies for improving 昀椀nal-mile e昀케ciency:
* Dynamic Routing: AI-driven tools can calculate the
most e昀케cient delivery routes, considering factors
like tra昀케c, weather, and road conditions.
* Real-Time Tracking: Implementing real-time
tracking systems allows for proactive communication
with customers and timely interventions in case of
delays.
* Geo-fencing and Alerts: Automated updates inform
customers when a delivery is near, enhancing
transparency and customer satisfaction.
Pran Raj also highlights the importance of localised
delivery hubs. “Setting up micro-ful昀椀lment centres within
urban areas shortens the distance from the warehouse
to the 昀椀nal delivery point, reducing delivery times and
costs,” he explains. For remote locations, strategic
placement of regional distribution hubs ensures faster
access to inventory and minimises delivery distances.
Collaborating with local delivery partners is another
key strategy for optimising the 昀椀nal-mile. “In urban areas,
partnering with local courier services or crowdsourced
delivery platforms o昀昀ers 昀氀exibility and faster response
times,” Raj explains. For remote locations, regional
logistics providers with local expertise can navigate
challenging terrains and infrastructure more e昀昀ectively.
Similarly, o昀昀ering 昀氀exible delivery time windows is
crucial for managing customer expectations and optimising resources. “In urban areas, o昀昀-peak delivery hours
can avoid rush-hour tra昀케c, while in remote locations,
昀氀exible windows align with available transportation
slots or weather conditions,” Raj enlightens. He also
emphasises the importance of strategic inventory
buffering. “Keeping buffer stock closer to demand
points ensures products are available for last-minute
orders, minimizing delays,” he informs.
Raj discusses the potential of emerging technologies
like drones and autonomous vehicles. “In urban areas,
drones can bypass tra昀케c congestion and deliver small
parcels directly to customers’ doorsteps. Autonomous
vehicles, though still emerging, hold promise for
MEGHA BANSAL
VP– Network Governance, Open Network for
Digital Commerce (ONDC)
Inventory management metrics must
evolve with an organisation’s growth. As
the organisation matures, the focus shifts
to unit economics and cost efficiency.
The SCM team must distinguish between
what management requires and what the
operational team needs on the ground.
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 fill rate, cancellation rates, and logistics provider
performance. This adaptability ensures that metrics remain relevant and
actionable for both management and operational teams.
streamlining delivery processes in both urban and remote locations,”
he comments.
E昀昀ective communication with customers is essential for 昀椀nal-mile
success. “Proactive communication through SMS, email, or app alerts
helps manage expectations and allows customers to reschedule deliveries
if necessary,” Pran Raj explains. He also highlights the importance of
optimised packaging. “Streamlined packaging reduces delivery size and
makes parcels easier to handle, improving e昀케ciency in both urban and
remote areas,” he adds.
Profoundly, sustainability is becoming a key consideration in 昀椀nal-mile
logistics. “In urban areas, Electric Vehicles (EVs) and cargo bikes reduce
tra昀케c congestion and environmental impact. In remote areas, eco-friendly
solutions like solar-powered vehicles can enhance operational e昀케ciency,”
Raj explains. Consolidated deliveries, where multiple orders are combined
into a single route, further reduce fuel consumption and costs.
In summary, optimising the 昀椀nal-mile is not just about reducing costs
but also about enhancing customer satisfaction and staying competitive. By
leveraging technology, local expertise, and innovative delivery solutions,
FMCG companies can ensure timely and e昀케cient 昀椀nal-mile deliveries,
even in the most challenging locations. Observing these varied aspects,
Narayan Prasad succinctly concludes, “Strategic partnerships and localised
solutions will remain essential for meeting the demands of tier-II cities
and emerging channels.”
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