Fast-Moving Consumer Goods Insight Report II

Strategic Decisions in the FMCG Sector

Supply Chain is the make or break for Fast-Moving Consumer Goods (FMCG) companies.

For a sector that relies heavily on the efficiency and reach of its product distribution, it is interesting that organizations have always looked at the supply chain as a cost-center.

The focus has remained primarily on saving costs in order to book more profits. 

However, the advent of e-commerce has changed the dynamics of the market completely, with customer experience becoming a distinguishing feature amongst brands.

Companies have stopped looking at the supply chain as a function to reduce costs but are now actively looking at it as the point of gaining a competitive advantage over their rivals. 

To come out on the top in this race, many traditional FMCG giants are quickly adopting technology for taking strategic supply chain decisions.

According to Harvard Business Review;

"New digital technologies that have the potential to take over supply chain management entirely are disrupting traditional ways of working. Within 5-10 years, the supply chain function may be obsolete, replaced by a smoothly running, self-regulating utility that optimally manages end-to-end workflows and requires very little human intervention. With logistics becoming the innovation hub for FMCG companies, supply chains have shifted from being the cost-centers to the key differentiating factor between major players."

This is the second report on decision-making in FMCG logistics. To download the first part, click here