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[Industry Trend] How Automation Technology Improves FMCG Warehouse & Fulfillment Management

Updated: Jun 30, 2023



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Introduction


The Fast-Moving Consumer Goods (FMCG) industry is highly competitive, with companies constantly looking for ways to improve their operations and stay ahead of the competition.


A particular area in the FMCG industry where automation technology has proven to be highly effective is in warehouse and fulfillment management.


In this article, we will discuss how automation technology can improve warehouse and fulfillment management in the FMCG industry.




Challenges faced by the FMCG industry in warehouse and fulfillment management


1. Limited shelf life


Many products in the FMCG industry have a limited shelf life, which means that they need to be managed on a first-in, first-out basis. If products are not sold before they expire, they ultimately end up becoming waste, leading to lost revenue and legal issues if accidentally sold.


2. Complex SKUs


The FMCG industry deals with a large number of stock-keeping units (SKUs), which can be challenging to manage efficiently. When SKUs are not organized properly, it can lead to slow and disorganized stock in, stock out, and stock count processes, resulting in inefficient warehouse operations.




Benefits of automation technology that can address these challenges faced by the FMCG industry in warehouse and fulfillment management


1. Enhanced product traceability


Automation technology can improve product traceability by providing real-time tracking on the movement of products from the manufacturer to the warehouse and the end consumer. This allows warehouse management to quickly identify and address any issues that may arise before the product reaches the consumer.


By using automated systems, FMCG businesses can now identify products that are close to expiry and ensure that these products are sold before they expire. Not only preventing legal issues and wastage, but this also enables FMCG businesses to take corrective actions to reduce customer complaints and returns.



2. Reduced human errors


Automation technology can greatly aid in the pick-n-pack process by utilizing barcode or serial code scanning to enhance the accuracy of order fulfilment. This not only ensures the correct quantity of items is being shipped out but also saves time as manual counting processes are no longer required.


The integration of automation technology in the pick-n-pack process can streamline business operations and improve productivity while also reducing the need for manual labor, which ultimately reduces the risk of human errors.


3. Increased visibility


Real-time updates enable warehouse managers to keep track of inventory levels accurately and immediately, which helps to avoid stockouts and overstocking. This data can be analyzed to predict future demand, ensuring the right products are in stock at the right time.


Furthermore, automation technology can collect and analyze data on return processes, including information on the reasons for the returns, the condition of the products, and other relevant data. This information can be used to improve the return process, reduce the number of returns, and increase customer satisfaction.


A dashboard for management provides a clear and concise overview of warehouse operations, including inventory levels, order fulfillment status, and other important metrics. This enables managers to quickly identify any issues or areas for improvement and make informed decisions based on real-time data.


In terms of stock in, stock out, and stock count, automation technology can increase visibility by providing accurate and up-to-date data on inventory levels. This data can be used to optimize storage and pick-n-pack processes, reduce inventory holding costs, and ensure that orders are fulfilled correctly.




Conclusion


Automation technology has transformed warehouse and fulfillment management in the FMCG industry tremendously, disrupting the traditional processes with the innovation of technology.


By truly understanding the pain points and realizing the benefits of automation, B2B businesses can now achieve greater efficiency, minimize unnecessary operational costs, and improve customer satisfaction.


As the FMCG industry continues to grow, automation technology will become an essential tool for B2B businesses that want to stay ahead of the curve.


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