Fast Moving Consumer Goods
The Fast-Moving Consumer Goods market can be both highly competitive and saturated, with brands competing strongly for retail shelf space, and increased market share. Some of the many challenges facing both manufacturers and retailers include changing consumer tastes and preferences, developments in regulatory considerations and packaging requirements, the impact of e commerce and on-line shopping, and the threats to supply posed by economic and political developments such as Brexit.
From a supply chain perspective, the industry needs to adapt both sourcing programmes and distribution networks to meet these changing demands. Examples of initiatives being adopted by our clients to respond to these market conditions include:
- Evaluation of procurement and supply agreements, to contain costs impacted by volatile freight market conditions and fluctuating exchange rates, and optimising the flow of inbound products and raw materials.
- Review of warehousing to maximise efficiency and ensure readiness for increasing demands for omni-channel distribution. Many now considering automation as a solution to increased productivity and a response to increasing labour shortages.
- Optimisation of transport networks, particularly in ‘last mile’ delivery as the volume of Business direct to Consumer (B2C) traffic grows. The increased accessibility of cost effective transport management systems (TMS) also yields potential benefits.
- Re-assessment of outsourcing strategy, to ensure that ongoing contracts and service agreements with logistics service providers are adequately aligned with future business needs.
The team at Bisham Consulting has extensive experience working in this industry sector, assignments having been completed for a wide range of manufacturers and retailers covering a wide range of products including grocery, fashion & apparel, electronic consumer goods, automotive and convenience retail products. Examples of services provided include:
- Supply chain ‘rapid diagnostic’ operational reviews to identify shortcomings in logistics processes and service execution, and highlight areas for improvement and cost saving opportunities.
- Procurement and inbound logistics strategy, covering sourcing options, trading terms and potential synergies in inbound freight flows.
- Distribution centre network design, location, lay out, automation, and operational improvement, identifying lean processes for servicing omni-channel routes to market, and potential added value services.