The Hidden Costs of Direct-to-Store Deliveries in FMCG Logistics — and How Flow by FAST Unlocks Savings

Fast-Moving Consumer Goods (FMCG) companies struggle with costly, inefficient direct-to-store deliveries due to underutilized trucks and fragmented shipment schedules. FAST Logistics Group solves this through Flow by FAST, a system-guided crossdock solution that optimizes truck utilization and cuts FMCG logistics costs.

The Philippines’ leading FMCG companies work tirelessly to ensure that Filipino families have easy access to their favorite brands at supermarkets and retail stores. Consumers rapidly consume essential supplies like food, beverages, toiletries, personal care, and cleaning products. Meeting demand requires high-volume operations and extensive distribution networks.

Because of high turnover and massive demand, FMCG companies must replenish stock frequently and deliver to multiple stores efficiently. Yet many companies struggle with inefficient direct-to-store deliveries, and the consequences hurt their bottom line and the environment.

Costly Problem in FMCG Logistics: Empty Miles, Partially Filled Trucks

Traditionally, FMCG companies have been hesitant to co-load shipments, often viewing one another as competitors even when their products sit side by side on store shelves. As a result, many prefer to deliver their goods using trucks that do not carry other brands and commodities.

On average, FMCG companies utilize only 30%–52% of truck capacity when delivering to supermarkets and retail stores, yet they continue to pay full truckload rates — whether using their own fleet or 3PL cross-docking services. This practice results in unnecessary trips, higher logistics costs, and increased carbon emissions — issues that multiply across hundreds of stores and delivery routes nationwide.

A study conducted by FAST revealed that there are more than 410 major retail stores across Metro Manila and 12 provinces in South Luzon alone (Cavite, Laguna, Greater Manila Area, Batangas, Quezon Province, Albay, Camarines Sur, Sorsogon, Camarines Norte, Occidental Mindoro, Oriental Mindoro, and Marinduque).

The problem becomes even more pronounced during peak seasons, when heightened demand and stricter retailer schedules create longer queues at the Receiving and Dispatching Units (RDUs) of retail stores and groceries.

The impact is clear: Without a system-guided solution, inefficiencies lead to underutilized trucks, uneconomical trips, and strained logistics teams in a competitive retail environment. 

Flow by FAST: A System-Guided and Smarter Alternative to Direct-to-Store Deliveries 

At FAST Logistics Group, we understand these challenges firsthand. Through extensive operational analysis across major FMCG clients, we identified the need to rethink direct-to-store logistics. The ideal solution had to reduce costs, minimize empty miles, ensure predictable replenishment, and support sustainability goals for the nation’s leading companies.

Hence, FAST launched Flow by FAST, a system-guided direct-to-store delivery solution designed to address these problems. It involves consolidating shipments at strategically located crossdock facilities and co-loading them on system-guided schedules aligned with retailer receiving windows. With Flow by FAST, FMCG companies can pay per occupied space instead of full truckload rates, translating to up to 32% cost savings. 

A crossdock facility serves as a logistics hub that receives, sorts, and consolidates goods from multiple suppliers for near-immediate dispatch to retail stores, ensuring deliveries align with retailer schedules. The solution increases truck utilization, reduces empty miles, and provides real-time visibility from distribution centers to retail stores.

In summary, FMCG companies joining Flow by FAST benefit from:

• Up to 32% cost savings in delivery rates by paying per space instead of full truckload rates
• Efficient and reliable stock replenishment through system-guided schedules aligned with retailer delivery windows
• Fewer empty miles, contributing to greener and more sustainable logistics operations

FAST Logistics Group: Industry Leader in FMCG Logistics

With Flow by FAST, FAST leverages its extensive experience in handling FMCG goods and managing deliveries to retail outlets and modern trade partners, such as supermarkets, hypermarkets, and convenience stores. Having worked with the biggest FMCG brands for over 50 years, FAST is able to design and provide logistics solutions that address their specific needs, with its scale, infrastructure, and deep industry expertise.

Flow by FAST ultimately benefits consumers by ensuring that essential FMCG products remain consistently available, especially during high-demand periods. With fewer delivery delays and more efficient replenishment cycles, shoppers can rely on well-stocked shelves in supermarkets and retail stores near them.

“Every direct-to-store delivery counts in Flow by FAST — no half-empty trucks, no wasted trips. Our goal is to help customers lower costs and carbon footprint while ensuring Filipino families have easy access to the nation’s leading brands at their favorite supermarkets and retail stores,” said Manuel L. Onrejas Jr., FAST CEO for Logistics.

“As an industry leader in FMCG logistics, we are committed to serving as strategic partners for our clients. With an industry-wide solution like Flow by FAST, we aim to help businesses achieve greater cost efficiency,” he added.   

Onrejas explained that Flow by FAST is the result of closely listening to customers and leveraging data to design smarter delivery solutions. 

“We will continuously work with our partners to streamline operations,” he said. “Understanding the challenges our customers face every day enables us to create pioneering logistics solutions that improve cost-efficiency and reliability across the supply chain.” 

By addressing the inefficiencies of traditional direct-to-store deliveries, Flow by FAST helps FMCG companies save costs, improve operational efficiency, and contribute to greener, more sustainable logistics. Book a free consultation with our Solutions Experts and see how much you can save with Flow by FAST.

With over 50 years of industry leadership in Philippine logistics, FAST Logistics Group is the trusted partner of multinational companies and leading conglomerates. With its extensive infrastructure and over 94% nationwide coverage, FAST provides warehouse, transport, cold chain, cross-dock, and toll manufacturing services to help businesses meet their operational needs.