3 Tips for Reducing the Your FMCG Logistics Costs

In the fast-moving consumer goods (FMCG) industry, logistics costs can significantly impact a company’s bottom line. As FMCG companies continue to grow and expand, finding ways to reduce their logistics costs and optimise their supply chain operations is becoming increasingly important. This article will discuss three critical tips for reducing FMCG logistics costs and how 3PL logistics3 Tips for Reducing the Your FMCG Logistics Costs providers help FMCG companies to  leverage these strategies to improve their competitiveness.

Tips to Reduce Your FMCG Logistics Costs

Here are three tips for lowering your FMCG logistics costs:

Optimise the Supply Chain

One of the best ways to reduce FMCG logistics costs is to optimise the supply chain. This can be achieved with two approaches:

  • Improve Route Planning: Effective route planning can help reduce transportation costs, minimise transit times, and improve delivery accuracy. By using real-time data and analytics, FMCG companies can optimise their delivery routes and schedules to minimise the distance and time required to transport goods. This can help reduce fuel costs, reduce the risk of product damage, and improve customer satisfaction.
  • Reduce Lead Time: Lead time is the time it takes to complete a task from start to finish. By reducing lead time, FMCG companies can reduce the amount of time their products are in transit, minimise inventory carrying costs, and improve their overall supply chain efficiency. This can be achieved by streamlining internal processes, improving coordination with suppliers, and using real-time data to identify and resolve bottlenecks in the supply chain.

Adopt Technology

Another key strategy for reducing FMCG logistics costs is to adopt technology. This can be achieved through two primary approaches: 

  • Utilise Logistics Software: Logistics software can help FMCG companies streamline their supply chain operations and reduce costs. By automating processes, reducing manual data entry, and providing real-time visibility into their supply chain, logistics software can help FMCG companies improve their overall efficiency and reduce costs.
  • Implement Real-Time Tracking: Real-time tracking is essential for reducing logistics costs in the FMCG industry. Using GPS tracking devices, FMCG companies can monitor their shipments in real-time, track delivery status, and quickly resolve any issues that arise. This can help reduce transit times, improve delivery accuracy, and minimise the risk of product damage.

Collaborate with Suppliers and Carriers

FMCG companies can reduce their logistics costs by collaborating with suppliers and carriers. This can be achieved in two ways:

  • Establish Partnerships: By establishing partnerships with suppliers and carriers, FMCG companies can reduce costs by sharing resources, improving coordination, and leveraging each other’s strengths. This can help reduce transit times, minimise the risk of product damage, and improve delivery accuracy.
  • Share Resources and Data: Sharing resources and data with suppliers and carriers can help FMCG companies reduce logistics costs by improving their overall supply chain efficiency. By sharing real-time data, FMCG companies can improve coordination, reduce transit times, and reduce the risk of product damage.

Using a 3PL logistics provider can reduce logistics costs by taking advantage of their economies of scale. 3PL logistics services providers have access to an extensive network of carriers and can often negotiate lower transportation rates than you could on your own.

The Varuna Group’s logistics network spans India and provides nationwide coverage, making it easy for customers to get their products to the market quickly and efficiently. Their warehousing and distribution services are designed to meet the needs of the FMCG industry, and they offer a range of value-added services such as order fulfilment, bundling & kitting, and returns handling etc.

Varuna Group successfully implemented real-time tracking technology to enhance the delivery of goods from the warehouse to the clients. This innovative solution resulted in a significant reduction of the effective logistics expenses for an FMCG giant by 8%. In addition, the utilisation of vehicle space was also significantly improved from 65% to 95%. These achievements demonstrate the effectiveness and efficiency of Varuna Group’s technology and expertise in logistics management.

Varuna is one of the foremost third-party logistics companies in India. Varuna is the right option for you if you are looking for logistics services.


More from author

Leave a reply

Please enter your comment!
Please enter your name here

Related posts


Latest posts

Car Detailing vs. Car Wash: What’s the Difference?

When it comes to keeping your vehicle clean and looking its best, two common services come to mind: car detailing and car washing. While...

Reviving Your Lawn with Artificial Grass

A lush, green lawn is a hallmark of a well-maintained home, but achieving and maintaining that vibrant lawn can be a challenging and time-consuming...

The Sustainability Revolution on the Red Carpet

In the world of entertainment and fashion, the red carpet has always been synonymous with opulence, luxury, and excess. It's the place where celebrities...