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FMCG & Consumer Goods Solutions

Optimize Your FMCG Distribution Network

Strategic DC placement and network design that transforms distribution economics.

From regional DCs to last-mile delivery. Reduce logistics costs by 25-35% while achieving 98%+ availability across all channels.

FMCG Network Optimizer

Multi-channel distribution optimization in action

Manufacturing Plants
3 plants, 500+ SKUs
Source
Regional DCs
Optimizing 8 locations
OPTIMIZING
Local Distribution
25 local hubs analyzed
ANALYZING
Retail
15K stores
E-commerce
200% growth
Quick
30min delivery
Optimization Complete
Network Cost:-28%
Service Level:98.5%
Inventory:-35%
Delivery Time:-40%

FMCG Distribution Challenges We Solve

Complex networks, thin margins, and demanding service levels. We optimize every element for maximum efficiency.

Complex Distribution Networks

Managing multi-tier distribution from manufacturing to millions of retail points

Inefficient networks waste 20-30% in logistics costs

AI-optimized DC placement and territory alignment for maximum efficiency

Inventory Positioning

Balancing inventory across hundreds of SKUs and locations

Poor placement leads to stockouts and excess inventory

Multi-echelon optimization ensuring right product at right place

Last-Mile Delivery

Rising e-commerce demands efficient urban distribution

Last-mile costs can exceed 40% of total logistics spend

Micro-fulfillment center optimization and route planning

Seasonal & Promotional Peaks

Network flexibility for 3-5x demand spikes during promotions

Static networks can't handle peak demands efficiently

Dynamic network design with surge capacity planning

Product Freshness & Shelf Life

Ensuring product freshness across extended supply chains

Expired products cost millions in waste and brand damage

Time-optimized network design with freshness constraints

Omnichannel Fulfillment

Serving retail, e-commerce, and quick commerce from same network

Separate networks increase costs by 25-35%

Integrated network optimization across all channels

Transform Your FMCG Distribution

Strategic optimization delivering immediate impact across your entire network

Strategic DC Placement

30-40% better coverage

Find optimal distribution center locations that minimize total cost while ensuring product availability across all channels

  • Multi-tier distribution optimization
  • Regional DC vs local fulfillment trade-offs
  • Urban micro-fulfillment centers
  • Cross-docking location optimization

End-to-End Network Optimization

25% logistics savings

Design efficient networks from manufacturing plants through DCs to retail outlets and end consumers

  • Plant to DC optimization
  • DC to store replenishment
  • Direct-to-consumer fulfillment
  • Returns network design

Total Cost to Serve

20% cost reduction

Balance warehousing, inventory, and transportation costs for lowest total cost to serve each market

  • Storage cost optimization
  • Transportation mode selection
  • Inventory carrying costs
  • Service level balancing

Service Level Excellence

98.5% availability

Achieve 98%+ on-shelf availability while minimizing inventory investment

  • Fill rate optimization
  • Lead time reduction
  • Safety stock placement
  • Demand coverage analysis

Inventory Optimization

30% inventory reduction

Right-size inventory across the network to reduce working capital while maintaining service

  • SKU-location optimization
  • Slow-mover consolidation
  • Safety stock optimization
  • Seasonal inventory planning

Sustainable Distribution

35% less emissions

Reduce carbon footprint through optimized routes and consolidated shipments

  • Route optimization
  • Load consolidation
  • Mode shifting opportunities
  • Packaging optimization

Success Stories from Leading FMCG Companies

From beverages to home care, see how industry leaders optimize their networks

Global Beverage Company

Scenario

Optimizing distribution network for carbonated and non-carbonated beverages

Challenge

Balancing direct-store-delivery with warehouse distribution across 50,000 outlets

Solution Applied

Multi-tier network optimization with route density and product mix considerations

Result

$12M annual savings, 25% reduction in delivery miles, 99% on-shelf availability

Personal Care Multinational

Scenario

Redesigning network for e-commerce growth while maintaining retail excellence

Challenge

Supporting 200% e-commerce growth without disrupting retail service

Solution Applied

Omnichannel network design with shared inventory pools and flexible fulfillment

Result

40% reduction in e-commerce fulfillment cost, maintained 98% retail fill rates

Snack Food Manufacturer

Scenario

Consolidating regional networks after merger of three companies

Challenge

Overlapping distribution networks with different systems and processes

Solution Applied

Network rationalization with facility consolidation and territory realignment

Result

Reduced DCs from 45 to 28, $18M annual savings, improved service levels

Dairy Products Company

Scenario

Optimizing cold chain distribution with strict freshness requirements

Challenge

Managing 7-day shelf life across nationwide distribution

Solution Applied

Time-sensitive network optimization with temperature zone constraints

Result

Reduced product waste by 60%, 20% logistics cost reduction, 100% freshness compliance

Home Care Products

Scenario

Entering new geographic market with optimal network design

Challenge

Setting up distribution for bulky, low-value products in competitive market

Solution Applied

Greenfield network design with competitor proximity analysis

Result

Achieved 85% market coverage with 5 DCs vs competitor's 8, 30% cost advantage

Confectionery Company

Scenario

Managing seasonal demand spikes for holiday products

Challenge

400% demand spike during holiday season overwhelming network

Solution Applied

Flexible network design with seasonal overflow capacity planning

Result

100% order fulfillment during peak, 35% reduction in seasonal logistics costs

FMCG-Specific Platform Capabilities

Purpose-built features for high-volume, multi-channel distribution

Multi-Tier Distribution Networks

Model complex flows from plants through regional DCs, local DCs, to stores and consumers

SKU Rationalization

Optimize product placement by SKU velocity, margin, and strategic importance

Channel Integration

Unified optimization across retail, e-commerce, and quick commerce channels

Freshness Constraints

Incorporate shelf life and freshness requirements in network design

Additional FMCG Optimization Features

Territory Optimization

Align sales territories with distribution efficiency

15% sales productivity gain

Seasonal Planning

Dynamic capacity for promotional and seasonal peaks

100% peak fulfillment

Returns Network

Optimize reverse logistics for returns and recycling

40% returns cost reduction

Rapid Implementation Process

From analysis to optimization in weeks, with immediate results

Week 1-2

Discovery

  • Current network mapping
  • Data integration (ERP, WMS, TMS)
  • Cost structure analysis
  • Service level baseline
Week 3-4

Modeling

  • Network optimization modeling
  • Scenario development
  • Sensitivity analysis
  • Channel strategy alignment
Week 5

Validation

  • Stakeholder workshops
  • Results validation
  • Implementation roadmap
  • Change impact assessment
Ongoing

Execution

  • Phased implementation
  • Performance tracking
  • Continuous optimization
  • Quarterly reviews

Proven Impact for FMCG Leaders

Measurable results from network optimization

$3.5M
Average savings
Per year per project
28%
Logistics cost reduction
Total network savings
98.5%
On-shelf availability
Consistent service
35%
Inventory reduction
Working capital freed
2.5x
Inventory turns
Improvement achieved
4mo
ROI timeline
Payback period

Why FMCG Leaders Choose Lagrange.AI

Built for the speed and complexity of consumer goods distribution

Traditional Methods

  • ×Manual network planning in spreadsheets
  • ×Limited scenario testing capability
  • ×Can't handle omnichannel complexity
  • ×Static networks can't adapt to change
  • ×Months to evaluate network changes
  • ×Single channel optimization only

Lagrange.AI Solution

  • ✓AI-powered network optimization
  • ✓Test thousands of scenarios instantly
  • ✓Unified omnichannel optimization
  • ✓Dynamic adaptation to market changes
  • ✓Results in days, not months
  • ✓Integrated multi-channel design

Enterprise Ready

SOC 2, GDPR compliant

AI-Powered

Advanced optimization algorithms

Easy Integration

Connect SAP, Oracle, MS

Industry Leader

Trusted by top FMCG brands

Transform Your FMCG Network Today

Join leading FMCG companies achieving 25-35% logistics cost reduction with 98%+ availability. See your optimized network in action.

Free network assessment • Implementation in weeks • ROI in 4 months