Retail in Asia


Fresh food fast: the importance of speed-to-market in FMCG

We live in an age of immediate results and instant gratification. Businesses recognize the need to fulfill consumers’ expectations by delivering their purchases quickly. A.P Moller-Maersk’s latest e-book examines how this need for speed impacts consumer product brands and how it can ultimately determine success in a highly demanding market.

The term “fast-moving consumer goods” exists for a good reason. To stay competitive, brands need to stay on their toes in an industry that moves at a furious pace. Nowadays, getting products to consumers on time is as crucial as the innovations that go into their creation.

As the old sporting adage goes, “the best ability is availability”, the same applies to FMCG. In fact, a study by MIT found that consumer brands lose almost 22 percent of unrealised profits because of unsellable products caused by expiration, discontinuation or damage.

In a world where shoppers are spoilt for choice, brand’s agility is equally important. Under the circumstances when their preferred brand is out of stock, almost 37 percent of consumers will switch to a different one, whereas 84 percent may opt out of buying the product at the time, which adversely impacts the brand’s reputation with retailers.

Consumer brands face a formidable challenge when it comes to balancing supply chain agility with steady product innovation. Hence, having a single LSP (logistics service provider) becomes increasingly beneficial at this point. An integrated end-to-end offers provides brands with a customized strategy that ensures every value chain step is completed to their satisfaction.

Additionally, businesses can retool their strategy to suit changing market demands without having to coordinate with a dozen parties.

Maersk’s latest e-book ‘Food for thought in FMCG supply chain’ explores how speed-to-market, process flexibility and agile inventory management can be brought together harmoniously to ensure steady success for brands, even in the most unpredictable of industries.

Those interested in the e-book can download it on Maersk’s website for free. It also includes an infographic detailing the supply chain journey of instant noodles as a clear example.