Market share and retail shelf space are perennial battlegrounds for consumer packaged goods (CPG) manufacturers. For this reason, companies rely heavily on efficient CPG logistics operations to get a price advantage, as prices are a primary weapon in this war.
This is even more challenging for small businesses because their logistic costs far exceed distribution or production expenses. emerge is a CPG & natural products sales outsourcing agency, and we have some effective strategies for you that will help you reduce CPG logistics costs.
Here are some of them:
§ Package Products In Distribution Center
From the distribution center to third-party packagers and back again—that’s the routine for many CPG companies. As a result, the company incurs additional freight costs and has less control over the product while it is being packaged. These issues can be avoided if the packaging is handled at the distribution center itself.
§ Cross Docking
Cross-docking is a method that eliminates the need for the warehouse to be used for product storage and handling, which saves both time and money. In this method, products are taken directly from the receiving dock and loaded onto another vehicle for delivery to the end client.
§ Improve The Supply Chain
The supply chain from the supplier-to-retailer-to-end-user is inefficient since it requires more touchpoints and freight runs, results in more inventory and slower cash cycle times, and causes delays in getting your goods to consumers who ordered them online.
Due to the high costs of maintaining a distribution network for CPGs, retailers have a hard time turning a profit from online sales of low-margin CPGs. It’s also possible to skip the intermediaries and have your distribution centers handle the eCommerce orders from your retail clients. Your customer’s productivity would increase, and your company’s revenues in this expanding distribution channel would be protected.
Work With Natural Consumer Packaged Goods Consultants
emerge is your “hands-on” outsourcing natural CPG solutions agency, whether for a long or short time, helping you expand your brand in a sustainable and economically sound way. Our goal is to assist CPG companies in expanding their operations by imparting our expertise and inspiring their passion.
If you’re looking for practical ways to cut down on logistic costs, contact our CPG & natural products sales outsourcing agency now!