Fast-Moving Consumer Goods (FMCG) are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, over-the-counter drugs, and other consumables.
The profit margin on FMCG products can be tight, but they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. The growth of the internet over the past quarter century has contributed greatly to the demand for FMCGs. However, most FMCGs are not ordered online as most consumers opt for the convenience of nearby brick and mortar stores for products in this category.
While today’s FMCG supply chains can be viewed as efficient, it is becoming increasingly apparent that the traditional assumptions driving infrastructure investment will change. To respond to these transformative changes, the FMCG and, in particular, the food industry supply chains, will require adaptations to reduce costs and increase supply chain responsiveness.
FMCG manufacturers have begun to change their thinking on warehouses, operations and supply chains to remain competitive in a dynamic industry and service consumers as required.
Distribution facilities and locations, along with a robust supply chain strategy, will play a critical role in the success of FMCG operators in the coming years. In order to maintain a competitive position and access key demand demographics, businesses will need to consider where they should be located and what’s the most efficient way of getting their products to their final destinations.
FMi Logistics is Calgary based, which is well positioned to support western Canadian demand for FMCG. Calgary has become the distribution hub for many major retailers, and most retailers DC’s are located just a few kilometres away.
Our 3PL warehouses can become an extension of your supply chain by managing the flow of inventory into these major retailers. They often have tight appointment windows and fines for late Purchase Orders. We have long term relationships with these retailers and ensure our customers product arrives on-time and intact.