Maersk has unveiled a plan to provide logistics and supply chain management support for Fast-Moving Consumer Goods (FMCG) companies in Nigeria.
FMCGs are products that are sold quickly and at a relatively low cost. They include non-durable household goods such as packaged foods, beverages, toiletries, over-the-counter drugs, and other consumables. These products are usually consumed on a small scale and are generally available in a variety of outlets including grocery stores, supermarkets and warehouses.
The Head, Marketing and Business Development, Africa Region of Maersk, Anita De Werd, said in Lagos recently that the company aims to support Nigerian FMCG companies in effectively managing their inventories and product delivery.
Ms De Werd said Maersk recognizes the importance of bringing together expertise, platforms and clients to find practical, effective methods and solution for addressing the complexities in the FMCG supply chain.
She said, “Managing the complexity in any supply chain demands having a good balance between the costs, demands and preferences for doing business around the world. We plan to deploy our international track record in supply chain management to the benefit of our customers. This means they will, through us, have instant access to the vast array of knowledge and experience that we have gained from working with different industries, regions and systems.
“We are not only able to understand the issues around logistics and supply chain management facing FMCG companies, but more importantly, we are able to bring solution to their pain points by develop the appropriate solutions for their specific needs.
“Maersk is the global integrator of container logistics. We handle about a fifth of global containerised trade. Our purpose as a company is to enable trade for the benefit of society and our customers,” she said.
She said Maersk will focus on solving FMCGs supply chain needs from end to end, taking the complexity out of container shipping.
“We are at the forefront of developing innovative supply chain solutions, fusing our global network and depth of expertise with pioneering digital innovations to enable our customers to stay ahead,” Ms. De Werd added.
The global FMCG market is projected to reach $15.3 trillion by 2025, recording a compound annual growth rate (CAGR) of 5.4% from 2018 to 2025. The global FMCG market has experienced healthy growth over the last decade because of adoption of experience retailing along with reflecting consumers desire to enhance their physical shopping experience with a social or leisure experience.
In Nigeria, the country’s burgeoning population remains a strong fundamental attraction to the FMCG sector.
Nigeria’s FMCG sector has, however, faced challenges over the few years due to a decline in the purchasing power of consumers as a result of the fall in oil revenue, reduced disposable income, and high cost of logistics service due to the need for improved infrastructure.