Cold Chain Optimization for FMCG Distribution

The client is a multinational FMCG company distributing temperature-sensitive products across Malaysia. Rising operational costs and increasing product spoilage rates were impacting profitability and supply reliability.

The company faced fragmented distribution routes, inconsistent temperature monitoring, and warehouse inefficiencies that resulted in elevated logistics expenses. Fuel cost volatility and delays in last-mile delivery further strained margins and retailer relationships.

Eurogroup Consulting developed a comprehensive supply chain optimization strategy focused on cold chain integrity, warehouse redesign, and route efficiency.

We conducted an end-to-end supply chain diagnostic covering procurement, warehousing operations, transport routing, and last-mile delivery performance. Warehouse layouts were evaluated to identify inefficiencies in product flow and storage allocation. We assessed temperature control systems and recommended IoT-enabled monitoring solutions to reduce spoilage risk. Route optimization modeling was conducted using delivery data to minimize fuel consumption and transit times. Supplier performance benchmarking was also carried out to evaluate service reliability and contract efficiency.

We recommended consolidating cold storage hubs in strategically located regions to reduce distribution complexity. Investment in real-time temperature monitoring technology was advised to safeguard product quality. Long-term logistics contracts were proposed to stabilize transport costs and improve service consistency.

Logistics costs were reduced by 14% within the first year, while product spoilage decreased by 32%. Delivery lead times improved by 20%, and overall distribution efficiency increased by 25%, strengthening retailer confidence and profitability.