A Study on Factors Influencing Logistics Efficiency in FMCG Sector in Coimbatore City

Abstract

Logistics efficiency plays a crucial role in determining operational performance and customer satisfaction in the Fast-Moving Consumer Goods (FMCG) sector. This study examines the factors influencing logistics efficiency in FMCG companies operating in Coimbatore city. Primary data were collected from 102 respondents working in distribution, retail, and manufacturing firms using a structured questionnaire. Statistical tools such as percentage analysis, descriptive statistics, and the Friedman Rank Test were applied to analyze the data. The findings reveal that cost control is the most significant performance factor, while traffic congestion is the major challenge affecting logistics efficiency. Warehousing emerged as the most important logistics activity influencing operational effectiveness. Although improvement factors did not show significant statistical differences, better infrastructure ranked first among them. The study concludes that logistics efficiency is a strategic determinant of organizational success and that companies investing in technology, infrastructure, and workforce development can achieve higher efficiency, improved customer satisfaction, and sustainable competitive advantage.

Introduction

Logistics efficiency is crucial in the FMCG sector as it ensures timely delivery, cost reduction, and customer satisfaction. It depends on effective management of transportation, warehousing, inventory, and distribution processes. Previous studies highlight that factors such as technology adoption, infrastructure, coordination, and workforce capability significantly influence logistics performance.

This study aims to understand logistics efficiency, identify its influencing factors, analyze their impact, and suggest improvements. It uses a descriptive research design based on data collected from 102 respondents in Coimbatore through questionnaires, along with statistical tools like percentage analysis and the Friedman Rank Test.

The results show that most respondents are young professionals (mainly aged 25–35), indicating a dynamic workforce. The Friedman test reveals that warehousing is the most important logistics activity, followed by transportation, order processing, and inventory control, with significant differences among them.

Findings indicate that logistics efficiency is influenced by cost control, infrastructure challenges (like traffic), and effective warehouse and inventory systems. A skilled workforce and technology adoption further enhance performance.

The study suggests improving warehouse infrastructure, adopting route optimization and digital tracking systems, strengthening inventory management, and enhancing coordination across the supply chain to boost logistics efficiency.

Conclusion

The study concludes that logistics efficiency significantly influences operational success in the FMCG sector. Among logistics activities, warehousing and transportation have a major impact on performance. Companies in Coimbatore must adopt advanced technology, strengthen inventory systems, and improve infrastructure to maintain competitive advantage. Efficient logistics operations lead to cost reduction, improved service quality, and enhanced customer satisfaction.

References

[1] Christopher, M. (2016). Logistics and Supply Chain Management (5th ed.). Pearson Education. [2] Chopra, S., & Meindl, P. (2021). Supply Chain Management: Strategy, Planning and Operation (8th ed.). Pearson. [3] Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2019). Supply Chain Logistics Management. McGraw-Hill. [4] Gunasekaran, A., & Ngai, E. W. T. (2018). Information systems in supply chain integration and management. European Journal of Operational Research, 159(2), 269–295.

Copyright

Copyright © 2026 Ms. Madhumitha R, Mr. P. Keerthi Vasan. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.