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Crisis management in FMCG logistics – how to respond to disruptions in the supply chain?

19 Nov 2024

Crisis management in FMCG logistics – how to respond to disruptions in the supply chain?

Crisis management in FMCG logistics – how to respond to disruptions in the supply chain?

Crisis management in FMCG logistics – how to respond to disruptions in the supply chain?

The graphic depicts orange trucks moving along an abstract, wavy road in shades of orange with white stripes.
The graphic depicts orange trucks moving along an abstract, wavy road in shades of orange with white stripes.

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In the dynamic world of logistics, particularly in the FMCG (Fast Moving Consumer Goods) sector, disruptions in the supply chain are not a question of "if", but "when" they will occur. Effective crisis management has become a crucial competency for transport companies, determining not only their competitiveness but often their survival in the challenging European market. In this article, we present proven strategies for responding to logistical disruptions that will help your company maintain operational continuity even in the most demanding circumstances.

Common Causes of Disruptions in the FMCG Supply Chain

Before delving into crisis management strategies, it is worth identifying typical factors that disrupt the flow of supplies in the FMCG sector:

  • Extreme Weather Conditions – violent storms, floods, or heavy snowfall can paralyse entire transport networks

  • Infrastructure Issues – road repairs, closed sections of motorways or restrictions in cross-border traffic

  • Staff Shortages – a lack of drivers, which has become particularly severe in recent years

  • Demand Fluctuations – sudden spikes in demand for specific products, often difficult to predict

  • Geopolitical Disruptions – changes in regulations, border closures, regional conflicts

  • Technical Failures – of both vehicles and IT systems supporting the logistics chain

Key Elements of Effective Crisis Management

1. Proactive Monitoring and Early Warning

Effective crisis management begins before a crisis actually occurs. It is crucial to implement an early warning system that allows for:

  • Continuous monitoring of weather conditions along planned routes

  • Tracking the geopolitical and regulatory situation in transit countries

  • Analysing historical data to identify potential bottlenecks

  • Utilising predictive technology to foresee potential disruptions

Companies that have developed a culture of proactive monitoring have significantly more time to prepare alternative solutions before a crisis fully unfolds.

2. Flexibility of Fleet and Logistics Resources

The ability to quickly redirect transport resources is fundamental to effective crisis management. In practice, this means:

  • Maintaining a diversified fleet of vehicles (of various capacities and specifications)

  • Collaboration with a trusted network of subcontractors ready to take on additional orders

  • Implementing modern fleet management systems that allow for dynamic reorganisation of routes

Operational flexibility allows for quick adjustments to changing conditions, minimising the impact of disruptions on delivery timeliness.

3. Diversification of Routes and Transportation Modalities

Relying on a single route or mode of transport drastically increases vulnerability to disruptions. The recommended approach includes:

  • Developing alternative routes for key transport corridors

  • Integrating different modes of transport (road, rail, sea)

  • Building a network of transshipment hubs that allows for quick changes in transport modalities

  • Testing alternative routes under normal conditions to identify potential challenges

Companies that have experience in utilising various transport modalities are significantly better prepared for crisis situations.

4. Advanced Planning

Preparation for various crisis scenarios is not a luxury, but a necessity in modern FMCG logistics. Key elements of this process include:

  • Regular review and update of contingency plans for different types of disruptions

  • Crisis simulations involving key personnel

  • Clearly defined procedures

  • Regular assessment and updating of crisis plans based on new data and experiences

It is worth noting that even the best plan requires regular verification and adaptation to changing market realities.

5. Transparent Crisis Communication

In the event of a supply chain disruption, the quality of communication with clients and partners often determines the perceived professionalism of the company. Effective crisis communication includes:

  • Immediate notification to customers about potential delays

  • Presenting specific plans to solve the problem

  • Regular updates on the status of the crisis situation

  • Clearly outlining expectations regarding further cooperation

Companies that manage to maintain transparent communication even in the most challenging circumstances build customer trust, leading to long-term loyalty.

6. Advanced Technological Solutions

Technology is the foundation of modern crisis management in logistics. Key solutions include:

  • TMS (Transport Management System) that allows for dynamic reorganisation of routes

  • Tools for real-time tracking of vehicles and cargo

  • Analytical platforms supporting the decision-making process in crisis situations

  • IoT solutions monitoring the condition of FMCG products during transport

Investing in advanced logistics technologies, although it requires expenditure, pays off especially in crisis situations.

Conclusions and Recommendations

Crisis management in FMCG logistics requires both systematic preparation and the ability to quickly adapt to changing circumstances. Key recommendations for transport companies include:

  1. Investing in early warning systems – their value is invaluable at the moment the first signs of a crisis appear

  2. Building operational flexibility – through diversification of fleet, routes, and transport modalities

  3. Developing crisis management competencies among employees – through regular training and simulations

  4. Implementing advanced technological solutions – enabling data-driven decision-making

  5. Maintaining transparent communication with customers – building trust even in difficult situations

Transport companies that can effectively manage crisis situations not only minimise operational losses but often emerge from crises stronger – with loyal customers appreciating professionalism even in the most challenging circumstances.

In a world where logistical disruptions are becoming increasingly frequent and complex, the ability to manage crises is no longer an additional asset – it becomes a fundamental competency determining the market position of transport companies in the European FMCG sector.

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