Introduction

Fast-moving consumer goods (FMCG), also called consumer-packaged goods (CPG), refer to products that sell quickly at a relatively low cost. Fast Moving Consumer Goods(FMCG) usually refer to those goods that are used for a short period of time, have low value, are easy to consume, have a wide distribution of consumers, have a high frequency of purchase, and have a long purchase duration.

Some FMCGs, like beverages and food, do not stay on shelves for long because they are in high demand, perishable, or both. To mitigate this quick turnover challenge, companies are constantly searching for new inventory management solutions.

Perishable describes the act of something going bad or spoiling, meaning it can no longer be used. Perishable goods have an expiration date, and once they reach that date, they are no longer in a usable condition. Food items like milk and cheese, produce, and meat is all perishable.

Business owners with perishable inventories must ensure they sell off their stock before the clock checkmarks down and cause their goods to become unsellable, losing money in the process.

That’s why perishable inventory management is such a vital part of any business that works with food and other perishable items.

The nature of the FMCG industry means deliveries need to happen constantly, with the flexibility to adapt to seasonal fluctuations (peaks can be as high as 400% annually) and shorter life spans (driven by both perishability and changes in customer taste). All this has to be catered for while continuing to seek greater supply chain efficiency by streamlining processes and maintaining economies of scale to meet price expectations when moving from “paddock to plate”.

FMCG or the fast-moving consumer goods industry needs a robust inventory management process to deliver quality products to customers at the right time.