SMARTLOG AND FM LOGISTIC SUCCESSFULLY IMPLEMENT DIGITAL TRANSFORMATION FOR A LEADING FMCG WAREHOUSE

IMPRESSIVE RESULTS

• Go-live achieved in 4 weeks

• 34,200 CBM of outbound goods processed through SWM

• 100% visibility across warehouse operations

• 99.9% inventory accuracy

• Product freshness management capability

ABOUT FM LOGISTIC

Founded in France in 1967, FM Logistic is a supply chain solutions provider serving companies across fast-moving consumer goods, retail, perfumes and cosmetics, industrial manufacturing, and healthcare.

FM Logistic operates in 14 countries across Europe, Asia, and Latin America, including Brazil. The French company generated €1.43 billion in revenue for the financial year ending March 2020 and employed more than 27,500 people.

FM Logistic has been accelerating its investment in digital transformation to deliver supply chain services that respond to changing consumer expectations, the growth of e-commerce and omnichannel distribution, and increasing sustainability requirements.

FM LOGISTIC AND SMARTLOG: A PARTNERSHIP TOWARD THE WAREHOUSE OF THE FUTURE

Operating a large-scale FMCG supply chain across multiple distribution channels is a significant challenge. This becomes even more complex in the snack food industry, where product shelf life and freshness are critical.

Consumers expect products to meet strict shelf-life requirements while remaining fresh and competitively priced. These expectations create considerable fluctuations in workload, particularly during peak seasons. The supply chain therefore needs to be flexible enough to respond to changing volumes while continuing to meet consumer demand.

This complex challenge required FM Logistic to reconsider its existing operations and identify a more innovative approach. It also created an opportunity for Smartlog, as an experienced technology partner, to address the operational challenges faced by FM Logistic and its customer.

The partnership between FM Logistic and Smartlog began at a particularly challenging time: in mid-July 2021, when the COVID-19 pandemic was severely affecting Vietnam, especially Ho Chi Minh City and the southern provinces.

Despite these constraints, the warehouse digitalization journey moved forward at speed. The transformation officially started on July 12, 2021, and after four intensive weeks of solution development and implementation, the project successfully went live on August 10, 2021.

PROJECT OBJECTIVES

The year 2021 brought significant challenges to public health, supply chains, and the overall economy.

COVID-19 restrictions made traditional warehouse operations difficult to maintain. Social distancing requirements, mobility restrictions, and health and safety measures created additional operational pressure and increased costs.

The leadership teams of FM Logistic and its customer recognized that transformation was necessary not only to overcome these challenges, but also to turn disruption into an opportunity for long-term improvement.

Technology became the foundation for simplifying procedures and maximizing warehouse efficiency through Smartlog's warehouse management solution.

The project also provided a stronger operational platform for the FMCG manufacturer served by FM Logistic to further strengthen its position in Vietnam's snack food market.

FM Logistic and Smartlog aligned on several key objectives:

• Provide real-time visibility into the progress of inbound and outbound orders.

• Establish a foundation for warehouse digitalization.

• Track the entire inventory operation with real-time updates.

• Optimize warehouse execution and management through better capacity utilization, reduced paperwork, and comprehensive monitoring of warehouse activities and transactions.

A COMPREHENSIVE, DATA-CENTRIC WAREHOUSE MANAGEMENT SOLUTION

1. INBOUND MANAGEMENT

• Inbound orders can be uploaded to the system via Excel to reduce data-entry time.

• Real-time data updates provide complete operational information.

• Inbound processes are executed in real time through handheld devices running the SWM application.

• Customized pallet labels display suggested storage locations, improving operational visibility.

2. INVENTORY MANAGEMENT

2.1. TRANSACTION EXECUTION

• System-driven putaway strategies.

• Accurate sorting and movement using handheld devices, helping save time and operational costs.

• Product information verification.

• Transactions fully executed through handheld devices.

2.2. INVENTORY HISTORY TRACEABILITY

• Comprehensive control of all transactions, including employee name and execution time.

• Traceability of inbound, outbound, and inventory adjustment history.

2.3. INVENTORY CONTROL

• Goods are separated into dedicated areas or locations for normal, damaged, or expired inventory.

• Through LOT control, warehouse teams can easily identify expired or near-expiry products.

2.4. STOCKTAKING

• Inventory counting by location and LOT quantity.

• Proactive stocktaking supported by handheld devices.3. Quản lý xuất kho

• Phân bổ theo quy tắc độ tươi (% thời hạn sử dụng theo nhóm khách hàng và nhóm SKU) và FEFO.

• Lưu trữ hàng hóa phân khu vực chẵn lẻ để vận hành và chiến thuật châm hàng.

• Tải lên mẫu để tạo nhiều DO cũng như Masterpick cùng lúc.

• Báo cáo xuất kho với đầy đủ thông tin..

• Quy trình lấy hàng và vận chuyển theo thời gian thực trên Thiết bị cầm tay.

• Phiếu giao hàng được thiết kế riêng cho từng khách hàng kênh MT (Lotte, Mega...).

4. REPORTING

Visual reports and dashboards give management a comprehensive view of warehouse operations.

A NEW BEGINNING WITH GREATER OPPORTUNITIES AHEAD

The rapid spread of COVID-19 in Binh Duong created significant challenges for both FM Logistic and Smartlog in carrying out on-site activities.

The factory and warehouse implemented strict testing and vaccination procedures to maintain a safe working environment and ensure the project remained on schedule.

The strong commitment of both teams ultimately delivered meaningful results.

Just three weeks after go-live, Smartlog SWM's comprehensive, data-centric warehouse management capabilities delivered 99.9% inventory accuracy, reduced paperwork, and enabled real-time reporting.

Management teams were able to access information more quickly, make faster decisions, and improve overall warehouse management efficiency.

This achievement was made possible through the close collaboration of the FM Logistic and Smartlog teams.

For us, however, this success represented only the beginning.

The journey ahead extends beyond warehouse management toward a broader data-driven supply chain, with the ambition of designing smarter, leaner, and more efficient logistics operations.

PROJECT HIGHLIGHTS