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.