Sep. 2, 2010 (The Hindu Business Line) --
Purvita Chatterjee
Mumbai, Sept. 2
The Kishore Biyani-promoted Future Supply Chain Solutions (FSCS), a Future group company, has bagged Hindustan Unilever (NYSE:UL) Ltd (HUL) as a customer and become a third-party logistics supplier to the FMCG behemoth.
“We have made a beginning by transporting their goods, but with time intend to have a more collaborative role as an external distribution partner,” said Mr Anshuman Singh, Managing Director and Chief Executive Officer, Future Supply Chain Solutions, on the sidelines of the CII-organised seminar on global competitiveness of retail supply chain.
Targeting volumes to the tune of almost 25 tonnes a day from HUL, Future Supply Chain Solutions would be reaching its food and personal care brands from HUL's factories and warehouses to the retail outlets. In fact, HUL has already been outsourcing its logistical functions to companies such as Gati, DHL and Lin Fix logistics. Even Unilever worldwide has been outsourcing its logistics functions in Europe and Latin America to Excel, one of the largest third party logistics providers.
According to analysts, “outsourcing logistics is a way of reducing indirect costs which the existing C&F agents may not be able to do. Third party logistics players are more agile and help in lesser shrinkage of goods which would lower costs.”
Since its launch in 2007, FSCS has been catering to the logistics and supply chain requirements of the Future group companies and now it would like to increase its business from clients outside the Group. As Mr Singh said, “We would like to have an equal mix of internal and external customers by 2012. We have started taking on external customers in the past six months and would like to provide warehousing and distribution services for them in the future.”
Its operations are now primarily to provide supply chains in fashion, food, home and general merchandise across the Future Group's retail formats such as Pantaloons and Big Bazaar. FSCS would like to double its turnover of Rs 200 crore to Rs 400 crore next fiscal, with more external customers in its kitty.
