Examining the constraints that prevent India’s FMCG sector from optimizing transportation costs, this study has identified 32 solutions to overcome them, highlighting transport policy as one of the top solutions which plays a vital role in improving vehicle fill rate in the long run.
Authors
Rudrangsu Biswas, Indian Institute of Social Welfare and Business Management (IISWBM), Kolkata, India
Rupesh Kumar, Associate Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India
Madhu Arora, Faculty of Computer Studies, Symbiosis International University, Pune, India
Abhishek Kashyap, MED, NIT Patna, India
Hemisha Makan, University of Johannesburg, South Africa
Summary
The FMCG (Fast-Moving Consumer Goods) sector is the fourth largest sector in India, significantly contributing to the economy by driving the growth of gross domestic product (GDP) and enhancing employment opportunities. In India, most of the transportation of FMCG goods is dependent on road freight transport only hence the vehicle fill rate is gaining importance day by day. The vehicle fill rate is adversely influenced by various constraints including weight & load limits, variability in truck carrying capacity, etc. that further influence the performance of road freight transport, resulting in high transportation costs.
Various strategies are required to overcome the constraints which will help optimize transportation costs for the FMCG sector in India. This study identified 32 solutions with Fuzzy TOPSIS (Fuzzy Technique for Order Preference by Similarity to Ideal Solution) employed for ranking of the solutions. Transport policy is identified as one of the top solutions, which plays a vital role in improving vehicle fill rate in the long run. Implementation of the solutions according to the need and rank may help the decision-makers and policymakers to achieve enhanced performance in road transport, compete globally, and contribute to the economy as well as the environment.
Published in: Case Studies on Transport Policy
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