How FMCG producers are tackling demand fluctuations and capacity crunches

Those at the heart of the FMCG industry will be familiar with the fluctuations in demand that can be triggered by various factors. Some, like seasonal shifts in demand for certain products, can be accounted for ahead of time. However, other factors, like unseasonably warm or cold weather, can throw a spanner in the works as retailers suddenly make unusually large orders for certain items.

Why capacity crunches are set to come to the fore

In today’s market climate, capacity crunches are increasingly becoming an issue. The economic downturn in recent years has seen drivers change professions, while many haulage firms are downsizing or ceasing operations for good. To make matters even more complex, other factors like seasonal driver shortages, infrastructure disruptions, and unexpected demand surges can’t be ignored either.

All of this means that FMCG producers not only need flexible, scalable production processes, but also reliable transport capacity in their carrier networks.

For the latter of those key factors, advanced digital solutions like the CargoON platform are fast emerging as the tools of choice. By leveraging platforms like these, shippers have been able to streamline and optimise transport operations, in turn shoring-up their supply chains and cutting operational costs at the same time.

Negotiating rates when capacity is hard to come by

Negotiating rates with carriers, especially during fluctuating demand, is a major challenge for FMCG producers. To address this, the CargoON platform allows shippers to streamline their contract rate negotiations.

Dijo Group, an award winning producer of flatbreads, snacks, sauces, and confectionery products, are a case in point. By utilising CargoON’s digital tools, the company says it has streamlined its contract rate negotiations and transport management, leading to cost savings and a boost in efficiency.

Tapping into excess capacity on the spot market

In addition to this, CargoON’s system integrates real-time data to create instant visibility into available capacity, enabling shippers to match their freight with carriers quickly and efficiently. This reduces the reliance on traditional manual methods such as calls and emails, which are time-consuming and less effective in a volatile market.

Moreover, by automating the load tender process, the system can better manage capacity constraints and optimise freight flows, even identifying opportunities for improvement such as selecting the most cost-effective transport modes.

CargoON Platform solutions make the contract rate negotiation process flexible, collaborative and more efficient. Carriers are sure to appreciate this.

👉 One-stop negotiations – benefits for the shipper:

• more effective control of the current market situation
• saving time spent on searching for quotations
• guarantee of selecting the most advantageous offer

👉 Benefits to the carrier:

• active participation in negotiations by submitting price proposals

Now by creating a fixed route, a shipper can start negotiating with carriers without specifying a starting rate. This solution will work best when your carriers are unable to meet your space requirements. This way you will make the best use of the available capacity and always go for the best available rate. The shipper from now on will be assured that their contract rate proposals are not rejected for being too low. Also protect yourself from overpaying, which increases transportation costs.

Digitalization significantly speeds up the negotiation process. Eliminating the use of excel, it allows to collect all offers in one single window. Their comparison takes a few seconds, and choosing the most favorable one is a click of the mouse.

👉 See how to start contract negotiations: Learn more