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The Fast Moving Consumer Goods (FMCG) industry faces tremendous competition in the marketplace. With increasing demand from consumers, the FMCG industry needs to respond to customers’ demands in a limited amount of time without loss of quality [1].
As a result, this challenge puts much pressure on logistics operations of each company. However, most of the FMCG providers are currently facing a lot of problems such as disrupted supply chains, difficulty in sourcing raw materials, higher border security, lack of available transport, and so on [2]. Of all the problems, the most persistent one is the miscommunication and the lack of collaboration between shippers, carriers, and end-customers.
This article will discuss in detail different aspects of this problem, and suggest solutions that shippers could use to communicate and collaborate more effectively with carriers and end-customers.
1. Employ a reliable and efficient communication channel
The biggest problems in the FMCG logistics industry come from its inconsistency and fragmentation [3]. Since there are many parties involved, including suppliers, manufacturers, shippers, carriers, and end-users [4], these problems will cause general inefficiency to the communication and collaboration among stakeholders.
As a result, there is a need for a reliable and efficient communication channel to integrate all parties in one centralized network. By employing an Enterprise Resource Planning (ERP) system, it's easier for everyone to access all of the supply chain information at once [5]. Consumer goods companies can also bridge the gap between shippers, carriers, and end customers, thanks to clear and concise information [6]. This can result in better supply chain management and on-time delivery without incident.
2. Facilitate real-time communication
Lags in communication make it hard to keep track of all the shipments that are sent out, which results in false information, lower efficiency, and an increase in costs. Timely communication and team collaboration between shippers, carriers and customers ensure that supply always meets demand [2].
A mobile solution such as Beekeeper's allows for 1:1 messaging and group chats, as well as streams where users can post updates [2]. Therefore, the solution would prevent workers from working out of sync with others and record incoming and outgoing shipments continuously.
3. Utilize technology-based solutions
One of the major problems in most FMCG providers is relying on heavy paperwork and making decisions on a day-to-day basis. This will lead to an adverse effect on the smooth functioning of the supply chain [7]. In contrast, customer expectations are increasing greatly. Both individuals and businesses want to get goods faster through multiple channels, which makes the providers under growing pressure to deliver a better service at a lower cost [8].
How can we solve this problem to facilitate the communication and collaboration between shippers, carriers and end customers?
Our logistics optimization platform Abivin vRoute will help you track the delivery progress, delivery status, truck location, costs with a real-time map and multiple Proof of Delivery methods like Photo Check-In, Electronic Signature. Moreover, for any off-track vehicles, late deliveries and other unexpected events, alerts and notifications will be automatically delivered to help you better control the delivery performance.
4. Automate routine procedures to reduce complexity
Logistics communication involves complex coordination among different departments and workers within an organization for both outbound and inbound shipping and receiving [2]. One communication problem in supply chain management can quickly snowball and disrupt an entire shipment or workflow.
Consequently, some of these business processes and communication will benefit from automation, which will simplify logistics management, keep workflows moving and stay on schedule [2]. The operating procedures will be standardized so that all work can be completed in less time with better effectiveness. Communication among team members is streamlined, routine tasks are automated, and daily work becomes easier to manage [9].
Conclusion
The FMCG industry is growing fast and strong, along with this comes the burdens of miscommunication and lack of collaboration between shippers, carriers, and end customers. Customers want a vast array of products to be delivered faster and more flexibly, but the fulfillment for this demand still has a long way to go.
To solve this dilemma, an All-in-one Transportation Management System that is reliable, efficient, technology-based and facilitates real-time communication will be extremely beneficial. In addition to the higher satisfaction of consumers, it will also boost the communication and collaboration among stakeholders in the supply chain.
