Today's volatility and sustainable FMCG conversion are just some of the biggest challenges you will face in 2022. The guidance of a specialised logistics operator will be the key to overcoming them successfully.
The FMCG chain, positioned as an essential and strategic sector, has had to adapt to unprecedented challenges in order to survive. The pandemic and the digitisation The operational measures have been just a few of them.
These bumps appear to have strengthened the sector's resilience, and it now stands as one of the industries with the highest growth rates in the world. greater capacity for change worldwide. This was revealed in the fourth edition of the "Observatorio de Innovación en Gran Consumo en España".
Throughout its four publications, this study identified more than 1,200 innovative solutions located in each of the processes and agents of the production, industrial and logistics chain. This figure demonstrates the sector's capacity to overcoming continuing challenges and needs demanded by their consumers.
What is the FMCG industry?
FMCG is an industrial sector associated, in essence, with high volume production. The products and services handled by this industry are mass-consumed and, therefore, in high demand. They are usually products without commercial borders, i.e. they are required by all social strata.
The main characteristics of FMCG products are as follows:
- They are purchased on a daily basis: are staple products that are consumed quickly and are purchased on a daily basis by consumers.
- They are quickly consumed: the expenditure of these products is fast because they are designed for this purpose. That is, to be consumed in a short period of time.
- They have a reduced priceThe cost of such mass products is usually affordable, so they can be consumed by all social strata.
- They are easy to findThe following products are easy to find in any shop, as there are a large number of companies dedicated to the manufacture of consumer products.
Why is logistics and transport important in FMCG?
According to the report "What's new in FMCG logistics", logistics outsourcing in FMCG companies is growing steadily. This sector is the main generator of specialised logistics services.
The logistics and transport of FMCG products can represent between 7% and 9% of the selling price. As a result, more and more companies are aiming to optimise these stages of the chain in order to differentiate themselves and increase their competitiveness in the market.
FMCG companies such as Coca-Cola and El Pozo have opted to implement new technologies in logistics and transport operations in order to become more flexible and adapt to changes as efficiently and quickly as possible.
The biggest challenges facing mass consumption
The main challenges facing the FMCG sector are in four main areas: the fight against climate change and the circular economy, consumer adaptation and supply chain efficiency. The biggest challenges we are talking about are:
- Adapting to today's volatility: Ensuring the survival of the sector during periods of peaks and troughs in demand is essential. That is why it is so important to have experts who know how to read and analyse the signals in the supply chain. This is the only way to foresee future trends.
- Waiting times for loading and unloadingFMCG, by definition, is associated with large volumes. Shopping centres receive a large number of trucks, trailers and shipments on a daily basis. Dealing with their loading and unloading is not easy, let alone balancing schedules. That's why FMCG companies are increasingly turning to logistics operators who are experts in their field to outsource their logistics and transport.
- Rising raw material pricesThe rising cost of raw materials is making it difficult to reduce costs in the production phase. This is why there is an increasing emphasis on optimising logistics and transport. Well-executed processes can help to maintain a competitive selling price.
- Conversion to sustainabilityConsumers are increasingly demanding environmentally responsible products and companies that are committed to sustainable actions. Implementing a circular economy model based on the principles of reduce, reuse and recycle is one of the biggest challenges for this industry.
In short, although it may seem complicated, the FMCG sector will be able to overcome these challenges thanks to the help of an outsourcing company with expertise in FMCG and solutions such as digitalisation and automation, applied to their processes.
