FMCG - Comprehensive logistics for a demanding industry

Logistics for the FMCG industry is one of the most difficult segments of the transport and storage market. Fast-moving products, such as food, cosmetics or hygiene products, require flexibility, precise planning and adaptation to changing customer requirements and a dynamic market. What challenges and trends shape this sector today?

The FMCG market is the foundation of the economy, providing consumers with everyday products such as food, beverages, hygiene products or household chemicals. In a dynamically changing trade environment, logistics plays a key role. In Poland, one of the leaders in servicing the FMCG sector is Raben Logistics Polska, a company with many years of experience that comprehensively manages supply chains.

FMCG logistics is not only transport and storage. Operators such as Raben offer increasingly advanced services, such as co-packing (packing products according to individual customer needs) or co-manufacturing (e.g. adapting products to local markets or producing Advent calendars from customer products). In addition, it is necessary to adapt to seasonal requirements – especially during periods of increased demand, such as holidays or promotions. Such flexibility allows customers to focus on their core business, while entrusting complex logistics processes to experts. 

A large proportion of customers from the FMCG sector try to ensure that products are available in stores many weeks before the holidays. Hence, for Raben, the pre-holiday rush begins in the summer months – and it is already then that we know what Poles will find under the Christmas tree. The peak in this type of repackaging occurs for many industries already at the turn of summer and autumn. This applies, for example, to cosmetic sets, which are among the most frequently purchased gifts in Poland. The logistics operator delivers such ready-made sets and originally packaged products to distribution or store warehouses, and only from there do the goods go to the shelf. Therefore, increased orders for these products can be observed in the warehouse as early as October, and the largest volumes fall in November. In December, increased purchases mainly include food products with high turnover. In the case of this product group, the peak order volume for the operator also falls at the end of November and the first weeks of December. In turn, for the beverage industry, including alcohol, the boom period lasts from Christmas to New Year's Eve.

 

Technology as a foundation

The growing scale of operations in the FMCG industry forces continuous optimization of logistics processes. Operational efficiency can only be achieved through cooperation between logistics operators and manufacturers and retailers. Modern technologies and technological innovations play a key role here. Process automation allows for increased operational efficiency. Robotization is becoming the answer to problems with the lack of qualified labor and rising labor costs.

Supply chain management systems that integrate data from various stages of logistics operations are equally important. Thanks to technologies such as the Internet of Things (IoT) or artificial intelligence (AI), operators can more accurately forecast demand, optimize inventory and increase process transparency.

One of the pillars of Raben Logistics Polska's strategy is investing in innovative technologies that increase operational efficiency, and the quality of services provided. Automation not only speeds up task execution but also minimizes the risk of errors that may occur in manual processes.

The digitization of the supply chain also plays an important role. Thanks to advanced IT systems, Raben customers can monitor their shipments in real time, which increases the transparency of operations and builds trust. Data management systems allow for demand forecasting and better inventory planning, which is particularly important in the FMCG industry, where products often have a short shelf life.

Raben is also focusing on the Internet of Things (IoT), introducing sensors that enable monitoring of transport conditions, such as temperature or humidity.

Raben stawia także na Internet Rzeczy (IoT), wprowadzając czujniki umożliwiające monitorowanie warunków transportu, takich jak temperatura czy wilgotność.

 

Key challenges

Serving the FMCG industry requires both efficiency and flexibility from logistics operators. Raben Logistics Polska faces many challenges that are the result of dynamic economic, technological and social changes.

One of the biggest challenges is maintaining on-time deliveries in the face of disruptions such as driver shortages, changing legal regulations or global crises such as the COVID-19 pandemic or the war in Ukraine. In such conditions, it is necessary to quickly adapt to new realities and use technologies that support process optimization.

Another challenge is the growing cost pressure. High energy, fuel and wage prices increase operating costs, which requires a constant search for more effective solutions. Raben responds to these needs, among others, by automating warehouse processes and investing in technologies such as warehouse management systems (WMS) and transport management systems (TMS).

Changes in consumer behavior are also significant, especially the growing popularity of e-commerce. Customers increasingly expect fast home delivery or collection points, which forces logistics operators to adapt traditional distribution models to the requirements of online channels. Raben focuses on the development of the omnichannel strategy, integrating logistics processes for various sales channels and ensuring their smooth operation.

This growing popularity of e-commerce significantly changes FMCG logistics. The growth of online orders forces operators to adapt to new requirements. Customers expect fast delivery, the ability to track orders in real time and flexibility in receiving products.

Logistics for e-commerce require greater flexibility in warehouse and delivery management. Operators must handle both wholesale and individual orders, which increases the complexity of the processes. The omnichannel strategy - combining traditional sales channels with online ones - is becoming the standard but requires investment in appropriate infrastructure and technologies.

Raben adapts its logistics processes to the specificity of this sales channel, investing in solutions that enable fast order completion and their timely delivery. The company is also developing warehousing models that allow for the simultaneous handling of traditional and online orders.

 

Challenges and a sustainable future

The FMCG industry is facing many challenges today. Economic instability, problems with the availability of raw materials, high energy costs and global crises such as the war in Ukraine force everyone to quickly adapt to changing conditions. Flexibility in responding to changing market needs is currently one of the most important factors determining success.

The future of FMCG logistics also means even greater technological development. Artificial intelligence, blockchain and advanced product identification and tracking systems will be key to improving the efficiency and transparency of operations. Investments in innovation will not only be a way to reduce costs, but also to increase competitiveness in the market.

In parallel with the growing importance of technology, more and more emphasis is being placed on sustainable development. More and more consumers are becoming environmentally aware, which leads to an increase in demand for environmentally friendly products. Customers expect greater transparency in the origin of products, their production conditions and their impact on the environment. Companies must adapt their strategies to the requirements for reducing waste and using recycled materials. Modern logistics cannot ignore these issues. The introduction of ESG principles is a response to the growing requirements of consumers and regulators. Logistics must therefore not only deliver goods but also support a sustainable approach to the entire supply chain. Raben Logistics Polska consistently implements ESG principles in its operations, striving to minimize the carbon footprint and increase energy efficiency. Hence the investments in fleet replacement and low-emission buildings, as well as initiatives such as Paperless 2.0, which digitize shipping documents and reduce paper consumption. 

The race for better efficiency, shorter delivery times and sustainable development is not only a challenge, but also an opportunity to redefine service standards in the FMCG industry. Companies that invest in modern technologies and focus on a responsible approach have a chance to become leaders of the future, and Raben will be happy to be their partner in logistics.