Fast Moving Consumer Goods (FMCG) are products that are sold quickly and replenished frequently, including a number of popular goods such as food and beverages, household products, toiletries and other everyday essentials. As the name suggests, these goods move rapidly through the pipeline, and efficient FMCG warehousing is absolutely essential to ensure products progress from manufacturer to consumer.
FMCG warehouses require efficient storage systems to manage high stock volumes, frequent deliveries, and strict stock rotation. This guide aims to delve into the industry of Fast Moving Consumer Goods and showcase the ideal racking solution to optimise space and downstream efficiency.
What is FMCG (Fast Moving Consumer Goods)?
FMCG are usually lower-cost products that have a higher rate of consumption and turnover, moving through the supply chain quickly. It covers a whole range of products, with the most common ones including:
- Food and beverages
- Toiletries and personal care products
- Household cleaning products
- Packaged consumer goods
- Cosmetics
- Pet food and supplies
- Everyday retail products
Warehouses that suffer from poorly organised storage can suffer from stock damage, delays, congestion, poor efficiency and hazards across the workplace.
Why is Storage Important for FMCG Warehouses?
Since FMCG warehouses handle large amounts of stock, with products often arriving and leaving on the same day, it can place additional stress on storage facilities and the systems used to manage them.
Stock Rotation
Stock rotation is an important consideration for FMCG businesses, particularly for products that have a limited shelf life. Depending on the products, the warehouse may need to follow a First In, First Out (FIFO) principle to ensure that goods do not go beyond their expiration dates. Not complying with this process can not only damage existing stock but also hinder brand reputation and pose a public health risk if they go to market.
Space Optimisation
Space is one of the biggest considerations for FMCG warehouses, and additional floor-level storage is not always ideal if stock increases rapidly, particularly during seasonal fluctuations.
SKU Diversity
FMCG warehouses deal extensively with stock that has a fast turnover time; therefore, they must be adept in handling thousands of unique SKUs. Failing to do so can often lead to misplaced goods, poor fulfilment and overall inefficiency.
Stock Fulfilment
Fast moving consumer goods are all about speed and efficiency, which means they can often be turned around and distributed within a day. This results in needing infrastructure and processes that can fulfil customer needs, leading to greater satisfaction and the ability to handle peaks in demand at short notice.
How to Achieve Highly-Efficient FMCG Warehousing
Optimise Your Layout
Before anything, it’s important to understand what you want your warehouse to achieve. Consider the requirements, product volume, storage needs, floor space and layouts, distribution requirements, and budgets when presenting changes in an FMCG warehouse to internal teams and stakeholders.
Implement Internal Principles
If not already in place, then certain principles such as FIFO are highly important in FMCG warehouses, especially where shelf lives are short. This is complemented by streamlining overall operations with greater training across equipment, additional protocols, and the ability to handle operational fluctuations.
Integrate Technology
Visibility helps warehouses run more efficiently, with technology such as real-time data tracking, RFID barcode scanning, automation and coordination throughout the entire process. Additional features such as robotics, conveyor systems, and equipment used alongside storage facilities are essential to maintain consistent workflow.
Build Your Infrastructure
Incorporating reliable racking and storage systems is essential for daily operations, offering a structurally sound, reliable and capable way of handling large amounts of inventory. A reliable supplier can offer several ways to increase density without sacrificing square footage and safety.
Choosing the Right Racking for Your FMCG Warehouse
There isn’t a singular racking system that can fit all FMCG warehouses, since the scope of products, pallet quantities and handling processes all differ.
Adjustable pallet racking offers a flexible option for environments looking to incorporate a wide range of products and pallet sizes. Beam levels can be adjusted and configured to adapt to seasonal fluctuations and changes over time. Whereas high-bay, double deep, drive-in or pallet shuttle systems are perfect alternatives for higher storage density, depending on the stock rotation and access required. Shelving systems are useful units for handling smaller products or areas where individual picking is a necessity.
Traceability is extremely valuable for fast-paced warehouses, especially as human error remains prevalent. This allows SKUs to be displayed clearly and identified on end bays, which is incredibly useful when picking over multiple locations.
FMCG Warehousing by Prodek
Prodek designs and supplies comprehensive racking and storage solutions for Fast Moving Consumer Goods and warehouses. Our team have over 30 years of experience, providing racking safety inspections and bespoke solutions that fit within and suit each business’s operational demands.
If you’re looking for guidance on industrial racking solutions, get in touch with a member of our team today.
