Do 3PL Companies Help the FMCG Market?

Fast moving consumer goods (FMCG) are goods that are sold quickly at low cost. These are mostly edible and consumable products whose shelf life is very less. On the contrary these products have huge consumer demand in the market as they can deteriorate if left on the shelf for long without proper care. Despite the profit margin being very less, these products are always sold in bulk hence they add to the cumulative profit for the seller. Thus FMCG market involves keeping huge stocks of items as they are always traded in high volumes. Hence they require quite a huge logistic build up for easy supply of stocks that too on time. It is at this juncture the 3PL companies can come handy for the FMCG market. The reasons are:

Efficient Stock management

Food and beverages when stored in bulk need effective stock management techniques so that they do not get damaged until they reach the consumer. This in general require establishment of warehouses with extensive cold storage facilities that costs a huge amount. Some food logistics UK‘s cost of maintenance are higher than procurement of the products. Hence outsourcing the logistic management contract to these 3PL companies will reduce the cost considerably on a longer run.

Extensive distribution network

3PL companies have excellent transport and distribution network. Their fleet of transport services can carry goods from any source to any destination within no time. They plan their distribution strategy well in ahead and are also flexible with last minute changes. They partner with the best transport systems to ship the goods across the globe. Their scalability also helps the FMCG market as no one can predict which consumable item will top the consumer’s liking on day to day basis.

A 3PL company has logistics as their core competency and hence all their staff are trained in planning, procurement, packaging and distribution techniques for efficient project management. The 3PL companies understand the exact logistic requirement and retail distribution plan for FMCG products including packaged food and beverages, health care, beauty products, spirits and liquor etc and hence can create cost effective solutions with latest state of art planning tools.

So, these are the reasons why these companies are really beneficial for the FMCG market. If a company is chosen considering their experience, popularity and expertise, they will certainly make a good option to bring in more profits.

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What are the Advantages of Working in Unison with a Third Party Logistics Company?

Business is a congregation of many resources. Acquiring raw materials, processing them into finished products and delivering them on time duly to the customers need a large amount of planning and organization. When the business infrastructure is huge, it becomes difficult to manage everything under one roof. Loosening up a bit, there are some portions of the business that can be managed efficiently by outsourcing the same to a third party. This third party logistic partner can manage the supply chain management for the entire business all by themselves. This eases some tension for the business houses which can now coherently manage their productivity and quality. There are plenty of advantages of working with a third party logistic partner namely.

One big solution

From assembly to packaging, from warehousing to distribution all the essential activities can be monitored and conducted easily with the help of a third party logistics distributor. Since this is their main business these 3pl companies pay utmost attention that is required for a seamless delivery of products. They also address packaging and delivery queries of the customers and do not let the production get affected whatsoever. In short they are a one-in-all solution regarding all delivery related requirements of any business house or company. With their assistance the talk will seem like a cakewalk as there will be no hassles and complications.

Effective Resource utilization

When a business is in coalition with a 3pl company they outsource the complete storage and distribution part to them with full confidence. The 3pl companies in general have a wide resource availability like giant storages or warehouses and also high network connectivity in the form of transportation and distribution partners. This reduces the effort, time and expenditure that businesses have to shell out in arranging warehouses and transportation of their own. This also maximizes the supply chain management efficiency as there is no stagnation anywhere.

One can also get continuous optimization of distribution techniques and scalability in business in addition to the above features by working with a branded logistics partner who has all the necessary infrastructure like 3Pl warehouse, fleet of transport facilities etc owned by themselves. Such third party logistic partners play an important role in diversifying one’s business. So, if you want to boost up your business and want to reap more benefits then partnering with such companies will be the right decision from your end.

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