What is Consumer Goods in Logistics?
"Consumer goods" is more of a marketing term than it is a logistics term. There are goods around us in our household, store, work, and so on. Whether it was a purchase that was a want or a need, they are products manufactured for personal use.
Consumer goods have three groups: durable goods, nondurable goods, and services (Consumer good, n.d.):
Durable goods include products of a longer lifespan (3+ years).
Ex: furniture, cars, appliances, etc.
Nondurable goods include products of a shorter lifespan, which are for immediate use.
Ex: food, drinks, etc.
Services are intangible products provided by experts or professionals.
Ex: haircuts, dental treatment, car maintenance, etc.
Now that we have an idea of the types of consumer goods - let's break it down further and talk about slow-moving consumer goods (SMCG) and fast-moving consumer goods (FMCG). As the name suggests, slow-moving consumer goods (SMCG) involve products that don't typically replenish quickly - they are of a higher price point, therefore, durable goods. FMCG is the largest group, which involves nondurable goods for their shorter lifespan and high-consumer demand (Kenton, 2021). Let's say you have a business for soft drinks, which will sell fast and need to be replenished to keep up with the demand. The whole supply chain is moving quickly, and any delay in materials can cost you - no one wants to play the waiting game. Several factors can contribute to a delay in production, but the main one is poor logistics management in:
Having carriers without proper insurance
Raw Material sourcing
Automotive parts are another FMCG because people need parts continually to produce motor vehicles or maintain their cars. According to Toyota, there are around 30,000 parts in making their vehicles (Children's Question Room, n.d.). If one tiny screw is missing, production could shut down, affecting business goals.
In logistics, things are constantly moving around for the sole purpose of getting the end product to you. Many companies seek out 3PL companies to keep the supply chain moving with little to no interference on schedule. Logistics companies must organize the movement of the raw materials to their end destinations to get manufactured into goods - may include lots of materials coming from several places. 3PL companies may connect businesses to suppliers, assisting them in their supply chain. Choosing to partner with a 3PL company, such as Jeniks Logistics, would open up doors to many possibilities and networks of safe and trusted carriers.
Children's Question Room. (n.d.). Toyota. https://www.toyota.co.jp/en/kids/faq/d/01/04/
Consumer good. (n.d.). Britannica. https://www.britannica.com/topic/consumer-good
Kenton, W. (2021, May 15). Fast-Moving Consumer Goods (FMCG). Investopedia. https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp