M AT ERI A L S H A NDL ING
Materials handling in the FMCG space RODNEY WEIDEMANN unpacks changes and challenges around handling goods in this dynamic space
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ver the past two years, there has been a massive rise in the purchase of fast-moving consumer goods (FMCG) online, driven largely by COVID-19 restrictions. This has obviously had a significant impact on the warehousing and materials handling aspects of the supply chain. The pandemic certainly initiated a dimension shift within the FMCG industry. Consumers turned to online purchasing out of necessity, quickly forcing retailers to embrace digital transformation in order to keep businesses afloat. Almost two years on, many consumers still prefer the online space out of convenience. Mishen Naidoo, engineering and solutions manager at Manitou Group, says material handling in warehouses traditionally followed a more predictable pattern: orders were placed in bulk by retailers and consumers bought off the shelves of these retailers. Online shopping by individual consumers brings in the factor of unpredictable buying patterns, along with consumer expectation of quick fulfilment. “Handling material has shifted focus towards warehouses and the equipment required for these to run smoothly,” explains Naidoo. “This in turn has placed a bigger demand on smaller forklift and order-picking equipment.” Rapid expansion and not being “left behind” have also presented challenges for the industry. This obviously comes at a cost, notes Naidoo, so warehouses have been forced to spend their capital on expanding storage space, purchasing and upgrading equipment, and increasing their staff complement. “Warehousing, like many operational spheres, has embraced digital transformation and evolved into ‘smart warehouses’. This includes connected machines, which can aid in reducing ownership costs, planning timeous servicing and preventing destructive operator behaviour. In some instances these connected machines are autonomous and need no operator interaction. “The key lesson from the experience is that adaptable, agile businesses are the ones that survive during tough times. Effective stockholding, inventory management and capacitymanagement chains are key.”
Handling e-commerce for the informal sector Just before the pandemic struck, Unilever had launched a project in conjunction with ParcelNinja to begin moving FMCG products into the informal sector. The idea was to get products as
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“The key lesson from the experience is that adaptable, agile businesses are the ones that survive during tough TIMES.” – Mishen Naidoo
Mishen Naidoo, engineering and solutions manager at Manitou Group
DID YOU KNOW?
The materials handling process for FMCG has become increasingly complex, in order to keep up with unpredictable demand while still maintaining an element of precise and speedy fulfilment processes – all while still keeping costs low. This has meant that warehouse owners have placed extremely stringent maintenance regimes on their material handling equipment. Source: Manitou Group
close to the end user as possible, as this is a sector that doesn’t really have access to e-commerce. ParcelNinja MD Greg Fine explains: “Unlike standard e-commerce, the products here go to the spaza shop, rather than direct to the home. While the consumer would purchase as normal from the spaza, the shop can now can place orders electronically with a rep or via a digital channel, and get stock delivered while the shop continues to trade – as opposed to the owner having to lock up the store and go out to acquire new products.” Fine says this market is entirely based on cash-on-delivery. “Sometimes, when the driver arrives, the owner has no cash available – either because they have already purchased other stock, or suffered from bad sales that day. What we are trying to do is digitise this supply chain, working with financial service providers to secure funds before the delivery driver leaves. This means that every delivery should go off according to plan, instead of being sent back due to lack of funds, while also eliminating cash from the supply chain, reducing the risk of theft and hijacking.” Fine notes that orders are captured in the field on a device by the sales rep or pushed to an online channel like a website, and received in real time by Unilever. The picking and packing is done immediately by ParcelNinja, and the delivery is allocated to one of its owner/driver courier partners. “These couriers receive the waybills on technology we provide to them, using the same software that is used to place orders with Unilever via their platform. Even in the midst of COVID-19, the project has seen orders grow from around 200 per day at the beginning to some 1 300 orders per day now. It is currently only operating in Gauteng, so there is much more to come. “Best of all, given the current state of the economy, is that this solution has impacted job creation significantly, creating a need for more drivers, sales reps and warehouse staff,” Fine concludes.
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2022/03/16 10:32 AM
