CARGOCONNECT-APRIL2026 - Flipbook - Page 36
SPECIAL FEATURE : FMCG SUPPLY CHAIN
This transformation is also reinforcing the role of warehouses
as execution intelligence hubs rather than passive storage assets.
As Manivannan explains, “Infrastructure itself is evolving to
support faster and more responsive distribution architectures
aligned with instant commerce expectations. Anchoring this
growth, warehouses today are evolving into high-velocity ful昀椀lment centres.”
A de昀椀ning shift in this transformation is the rapid decentralisation of ful昀椀lment infrastructure. As Paramane explains,
“The rapid expansion into tier II and III cities is not just about
more users; it’s about a fundamental shift in infrastructure.” He
further notes that in 2026, the “Cost-to-Serve” in smaller cities
has declined signi昀椀cantly due to the standardisation of modular
dark stores that function as “plug-and-play” ful昀椀lment units
capable of being deployed within 48 hours. This modularity, he
says, is enabling FMCG players to scale presence quickly without
replicating legacy warehouse-heavy network models.
Importantly, infrastructure transformation is being accompanied by a measurable shift in consumer behaviour. Paramane
highlights the strengthening relationship between ful昀椀lment
speed and adoption in emerging consumption markets, observing
that “when a consumer in a smaller town sees they can get a
high-quality FMCG product in 15 minutes, their digital trust
increases, leading to higher ‘Average Order Values’ (AOV).” As
he quotes, such behavioural shifts are reinforcing the strategic
importance of proximity-led fulfilment architectures across
non-metro markets.
Across the industry, companies are responding by moving
ful昀椀lment closer to demand clusters rather than relying solely
on centralised hubs. Rumee Sethi, Head– Warehousing &
Logistics – North, Jubilant Foodworks, explains, “The biggest
thing that is happening now in supply chains is we are moving
from cost efficient models to supply chain centres which are
actually closer or more proximate to the delivery points.” She
adds that markets such as Uttar Pradesh are expanding faster
than traditional metro clusters precisely because supply chain
networks are being redesigned around emerging consumption
corridors rather than legacy urban footprints.
This shift toward proximity-led infrastructure is also reshaping
how inventory 昀氀ows through distribution hierarchies. Kaushik
spotlights, “MFCs function in many cases as “a small replica of the
hub-and-spokes model out there, enabling companies to bypass
certain traditional distribution layers and directly position relevant
product segments closer to localised demand environments.”
At the same time, she emphasises that the applicability of such
models remains product- and segment-speci昀椀c, re昀氀ecting the
continuing coexistence of multiple ful昀椀lment pathways across
FMCG ecosystems.
At a structural level, MFCs are increasingly emerging as one
of the most in昀氀uential enablers of speed-led distribution. Gupta
observes that “one of the most impactful developments in FMCG
logistics is the rise of MFCs. These small, strategically located
storage hubs allow companies to position inventory closer to
demand clusters.” By shortening the distance between warehouses
and consumers, Gupta attests, these facilities are signi昀椀cantly
improving delivery responsiveness while strengthening service
reliability across high-frequency consumption environments.
As ful昀椀lment expectations continue to compress delivery
timelines, organisations are expanding warehouse footprints in
parallel with improving routing precision. Bhawna notes, “Now
the expectation is that product should reach you in minutes and
we want a live tracking of that shipment, which is prompting
36 | CARGOCONNECT APRIL 2026
We are increasingly building decentralised
stock points closer to demand while
focussing on high velocity and throughput
operations and enabling seamless lastmile readiness. We are also progressively
implementing vehicle planning models
to optimise capacity and cost, route
optimisation to improve on-time delivery,
and predictive track & trace systems for
better visibility.
T MANIVANNAN
COO, ProConnect Supply Chain Solutions
Even incremental improvements in forecast accuracy can produce disproportionate gains in shelf availability and service
reliability. By combining store-level
sales velocity insights with structured
inventory tracking, organisations are
increasingly able to identify fast-moving
SKUs early and flag potential shortages
well before they affect service.
VISHWESH J NAIR
AVP– Business Excellence, The Belgian Waffle Co.
