Fast-moving consumer goods (of FMCG’s) are types of products that sell very quickly due to a low cost and ready-availability. These goods are also often referred to as consumer packages goods.
FMCG’s tend to have a shorter shelf life than traditional products due to higher consumer demand (for example, soft drinks and pastries), or because they are perishable (fresh fish, dairy products etc.). These types of products are purchased daily and consumed rapidly. They are most typically sold at low prices in rather large quantities. In addition to that, FMCG’s have a high turnover when placed on a shelf in a store.
In other words, fast-moving consumer goods are not about ‘slow and steady wins the race’ – it’s about finding a reputable procurement company that can keep up with the high-demand and continue delivering you quality goods, on time, and at the best possible prices.
What is FMCG Procurement (Fast Moving Consumer Goods)?
Fast-moving consumer goods are products that are consumed often by the average type of consumer. These FMCG’s are divided into a variety of different categories—three in face: nondurable, durable, and services.
Almost every single person in the world will purchase fast-moving consumer goods at some point in their daily lives. These could be small-scale consumer purchases, such as a meal-deal from a supermarket, or some bubble-gum from the petrol station.
In fact, fast-moving consumer goods account for over half of all consumer spending. Of course, these tend to be on the lower level of spending, but they still account for over fifty percent!
Using Branded-Merchandise to Re-Inforce Purchasing Decisions
One vital aspect of procurement, is the use of branded-merchandise and point of sales merchandise in order to boost sales and re-inforce your overall brand identify and awareness. In addition to that, you can explore serving materials, loyalty gifts, promo items, give-aways, corporate gifts, and so much more.
The utilisation of branded merchandise is a crucial aspect of the overall procurement process, particularly when it comes to advertising. For example, in the FMCG industry, branded point-of-sale displays can work wonders in driving purchasing decisions and aiding in the turnover of clearing out those shelves.
The Different Types of Fast-Moving Consumer Goods
As we briefly touched on above, FMCG’s are nondurable goods, or goods that have a significantly shorter lifespan which are consumed rapidly. These can be broken down into a number of different categories, including:
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Medicine:
Pain relievers and other over-the-counter medications
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Cleaning products:
Oven cleaner, kitchen cleaner, bleaches, and all other cleaning products
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Baked goods:
Bagels, baguettes, pies, and all other baked goods
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Processed foods:
Boxed pasta, various cheeses, frozen oven-snacks
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Prepared meals:
Any microwaveable ‘ready to eat’ meals
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Beverages:
Coca cola, energy drinks, smoothies, bottled water, etc.
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Fresh goods:
Fruit and veg
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Cosmetics:
Hair and makeup products, including contraception
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Office supplies:
Such as pencils, pens, staples, etc
What is Procurement as a Service (and How Does It Related to FMCG)?
Procurement as a service is a model that is typically outsourced, combining new technology, expertise, and an extensive network, to handle a portion (or all) of an organisations procurement functions. Depending on the industry, this could involve a wide range of logistical intricacies.
Technology helps to see where your money is being spent, whilst also identifying possible areas to save money. It also helps when choosing the categories for sourcing, and assigning dedicated experts to handle all of the purchasing involved. Someone with solid connections and a deep and thorough understanding of the challenges faced when procuring for your particular industry.
Let’s take a look at the procurement challenges faced in the FMCG industry:
Let’s take a look at the procurement challenges faced in the FMCG industry:
Procurement Challenges in Fast-Moving Consumer Goods:
In the fast-moving consumer goods industry, there are a number of challenges that one must be aware of. Understanding these challenges can help you find the perfect procurement partner to assist with your company’s future growth.
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A lack of end-to-end visibility and collaboration
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An inability to connect product design with manufacturing and fulfilment within your supply chain
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Conflicting KPI’s
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Lack of planning and coordinating between suppliers
It’s a face-paced industry and thus finding a partner that can hit the ground running is an essentiality.
Why Choose UCT Asia as Your FMCG Procurement Partner?
So, why choose UCT Asia to serve as your FMCG procurement partner?
- UCT Asia can design and create a wide-range of amazing promotional goods and materials for your brand, to help drive sales and solidify your brand awareness.
- A long-established procurement company having worked with a wide range of reputable brands including: Heineken, Peroni, Hendricks Gin, Jägermeister, and more.
- UCT Asia, focuses on the total cost acquisition when it comes to procurement and sourcing within the fast-moving consumer goods industry. This includes the direct and indirect cost efficiency, paying attention to manufacturing processes, and of course, ensuring that the logistics / transportation and supply chain optimisations are airtight.
- UCT Asia will do everything in our ability to reduce your overall costs, both in the sourcing and delivery of the procured FMCG’s.
- We have a huge network across Asia. Our footprint includes Shenzhen, Ningbo, Manilla, Bangkok, Ho Chi Minh, and Phnom Penh. This allows us to locate and secure the finest FMCG solutions to suit a wide variety of needs; including optimal transportation and logistics in relation to the location of your FMCG outlet.
Whether you want to reinforce your brand message, or you wish to cut your overheads down significantly, or even improve the quality of product coming through your business, at UCT Asia, we would be delighted to assist you with all your FMCG procurement needs.
Simply reach out and
today for more information.