Supply and Demand How Third Party Logistics Benefits Fast Moving Consumer Goods


In today’s modern society and economy, speed is everything. From fast internet, to transportation, to even the food we eat, and even more, people are demanding speed and pretty much all aspects of everyday life.

However, speed is by no means the only contributor of humanity’s success and growth as a species. At least as far as economics is concerned, the manufacture, and distribution of all manner of different products and consumer goods is reliant upon the interconnected web that is logistics to ensure that products especially those that have a tendency to quickly go bad such as food and beverages get to their intended destinations in good condition in a timeframe that ensures that quality and freshness is preserved and kept at a high standard.

However, the impact of third party logistics or more precisely lack thereof has been felt most strongly over the past two years as the restrictions and other safety measures to try and contain the COVID-19 pandemic have disrupted supply chains in most if not all markets causing shortages in raw materials for products which we once took for granted (toilet paper I’m looking at you)

Fortunately, according to a study by Allied Market Research, the logistics industry for Fast moving consumer goods (FMCGs) is expected to grow in value from $1,056.58 billion in 2019 to about $1,400.80 billion by 2027, and is projected to bring in an estimated revenue $518.08 billion by 2027 compared to $431.66 billion in 2019

So, how you may ask is third party logistics FMCGs?



  1. Economies of Scale

  • Utilizing 3PL makes it easier to transport larger amounts of food products and other types of perishable goods through longer distances as quickly as possible thus, making said products cheaper for the end consumer as well as the manufacturer over all.

  1. Saves Time and Effort

  • 3PL simply takes all the guess work out of delivering and distribution of FMCGs, so why go through all the confusion when you can simply pay someone else to do it for you?





  1. Allows Products to be Shipped Directly to the consumer

  • Typically, a FMCG company lacks the resources and facilities that will allow for cross-docking, or shipping directly to the consumer, that most 3PL companies specialize in. In the context of the Philippine archipelago, the use of 3PL will allow for even far flung areas to receive quality goods from more industrial regions.

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