FMCG market increasingly recognises need for logistics collaboration

Collaborative demand planning in South Africa’s fast moving consumer goods market (FMCG) remains constrained but local players are increasingly starting to realise the benefit of adopting more integrated planning processes with their logistics partners.

“The lack of integration means that service levels are still under pressure and inventory levels are therefore not optimal,” said Paul Dickson, strategic solutions lead: retail/consumer for logistics solutions company, Resolve, speaking at the Special Interest Group (SIG) Transport Forum in Gauteng last week.

He added that although retailers and suppliers were looking at more collaborative planning, this was not effectively executed and it was generally at a strategic/long-term level. “Logistics service providers are rarely seen as strategic partners and are not typically involved in collaboration initiatives,” said Dickson.

According to him, three main barriers to “optimal collaboration” need to be addressed through:
• Harmonisation  of IT systems and data sharing
• Focus on shared values and addressing historical and cultural differences
• Alignment of operations and process