FMCG Logistics - Guide & Pricing
A complete guide to shipping consumer goods across borders – Costs, modes, regulations, and best practices
This article will tell you everything about the logistics and supply chain management of FMCG goods worldwide. From the expected costs, which rules and regulations to abide and the most effective transportation modes.
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Finding the best logistics service provider for your FMCG business
Choosing the right logistics partner for your FMCG business is import for ensuring your products reach consumers efficiently and cost-effectively. Here's a step-by-step guide to help you find the best company or freight forwarder:
1. Define Your Needs:
- Product type: Perishable, non-perishable, hazardous?
Shipping volume: How much do you need to ship? - Destinations: Where are your customers located?
- Budget: What is your transportation budget?
- Service requirements: Do you need temperature-controlled transport, warehousing, customs clearance, or other value-added services?
2. Research Potential Partners:
- Reach out to your network for referrals.
Submit quote request to online directories: Platforms like Freightos, Zendeq and Shypple can help you with 3PL.
3. Evaluate and Compare:
- Experience and expertise: Look for companies with proven experience in FMCG logistics and knowledge of your specific product categories.
- Network and reach: Do they have a global network that can reach your target markets?
- Services offered: Do their services align with your requirements?
- Technology and tracking: Do they offer online tracking and reporting tools?
- Customer service: Are they responsive and easy to communicate with?
- Financial stability: Check their reputation and financial health.
- Pricing: Get quotes from multiple providers and compare their rates.
4. Ask the Right Questions:
- What is your experience with FMCG products?
- Can you handle my specific product requirements?
- What is your network reach and transportation options?
- How do you ensure the safety and security of my goods?
- What is your pricing structure and what are the additional fees?
- How do you handle customs clearance and regulatory compliance?
- What is your track record for on-time delivery?
What are FMCG?
Fast-moving consumer goods, also known as consumer packaged goods (CPG), are products that:
- Sell quickly: They have a high turnover rate, meaning they fly off the shelves compared to other products. Are relatively inexpensive: They are generally low-cost items that consumers purchase frequently.
- Have a short shelf life: Many FMCG products are perishable or have a limited lifespan.
Examples of FMCG Products:
- Packaged foods: Cereal, snacks, canned goods, frozen meals
- Beverages: Soft drinks, juices, bottled water, beer
- Toiletries: Soap, shampoo, toothpaste, deodorant
- Over-the-counter drugs: Pain relievers, allergy medication, vitamins
- Cleaning products: Laundry detergent, dish soap, surface cleaners
- Cosmetics: Makeup, skincare products, hair care products
- Office supplies: Pens, paper, notebooks
How to make your FMCG logistics future proof
In a world with ever-changing logistics challenges, consumer goods companies are rethinking how to invest in their supply chains to be more future-proof. Traditionally, supply chains were planned product by product and country by country. This fragmented approach makes it difficult to react to disruptions caused by ever-changing trade barriers, sea routes with stopups, and other logistical challenges.
The future-proof approach involves four key strategies. First, companies are looking for alternative supply options, such as multi-sourcing, to avoid relying on a single supplier or location.
Second, they are investing in end-to-end visibility across their supply chain. This allows them to identify and react to problems quickly.
Third, companies are pre-planning alternative flows and storage options to handle unexpected disruptions.
Finally, they are leveraging artificial intelligence (AI) to improve demand forecasting and planning. AI can analyze vast amounts of data, including point-of-sale information and consumer trends, to predict demand more accurately.
E-commerce is another major driver of change in FMCG supply chains. It provides consumer goods companies with a direct channel to engage with customers and understand their preferences. This data can be used to develop new products and improve forecasting. However, e-commerce also requires investment in data processing and analytics capabilities.
Overall, the companies that can adapt their supply chains to be more interconnected, visible, and data-driven will be best positioned to succeed in the ever-changing world.
FMCG Transport Modes
Depending on what your shipping, you should look at the best mode of transport. FMCG are diverse and so are the transport modes that can be used:
| Transportation Mode | Best Suited For | Not Suitable For | Additional Considerations |
| Sea Freight | Bulk shipments of non-perishable goods, cost-sensitive products, long-distance shipments | Perishable goods (unless using reefers), time-sensitive products | Most cost-effective for large volumes, but slowest transit time |
| Air Freight | Perishable goods, high-value products, time-sensitive shipments | Bulk shipments, cost-sensitive products (unless speed is critical) | Fastest transit time, but most expensive |
| Road Freight | Regional or domestic shipments, door-to-door delivery, smaller consignments | Very long distances, bulk shipments (unless using multiple trucks) | Offers flexibility and convenience |
| Rail Freight | Long-distance, high-volume shipments, bulk commodities | Door-to-door delivery (requires additional modes), time-sensitive products | More eco-friendly than road or air |
| Multimodal Transportation | Complex supply chains, overcoming geographical constraints | N/A | Combines modes for optimal cost and speed |
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