FM logistics released a new strategy for the next decade. Deepti Thore finds out how the company plans to go about setting and achieving its goals.
FM Logistic India, one of the key 3PL French companies, has rolled out a new strategy for the decade. Aiming to become a reference partner in the field of sustainable, omni channel supply chains, the international e-commerce company has laid out new goals for the new year to realise its ambitions over the new decade. Christened as ‘Powering 2030’, the new strategy was presented at a press conference held in Pune, led by Jean-Christophe Machet, Chief Executive Officer (CEO), FM Logistics. As per the new strategy, the company plans to double its revenue to Euro three billion from Euro 1.4 billion by 2030 and increase its EBIT margin by four percent. It also focuses on omni channel supply chain services, urban logistics, sustainability, distribution and customer experience. In addition to this, it also targets carbon neutrality for its own warehousing operations by 2030. Signifying the importance of the strategy to drive profitable growth. Machet expressed, “In a time of rapid change, our priority is to help our customers build sustainable omni channel supply chains. Therefore, our nine-year plan puts customer experience and sustainability at the core of everything we do.”
The company is known to have adopted five strategic pillars including omni-channel, urban logistics, sustainable development, transport and customer experience. It is eyeing expansion by connecting seven major cities in India by 2026 by partnering startups to set up charging points suitably in these cities. It plans to deploy a fleet of 500 Electric Vehicles (EVs) and set up EV charging stations across all urban logistics hubs and facilities. In other initiatives, to practice gender diversity and build an inclusive workforce by 2026, the company aims to increase specially abled manpower by five per cent and women workforce by 40 per cent overall.
The company has ambitious plans of developing Grade A warehouses in major consumption areas to facilitate high operational and cost efficiencies. They plan to do so by adopting their own means and methods of ensuring and controlling quality standards for customers. It also plans to reinforce it’s offer of end-to-end supply chain services replete with value added services, urban logistics and green last mile delivery. It also plans to adopt automation and best practises in its supply chain to further optimise it for its customers. FM logistics is also determined to develop a network of urban logistics hubs covering major Indian cities.
Practising sustainability
It has become imperative to tailor the supply chains as per the needs of each and every channel. With the growing need for sustainable omni channel services, FM logistics is looking at strengthening its omni channel fulfilment capacity by expanding its network of large MCFs, supported by investments in automation and connecting a full network of urban logistic hubs. The company has opened new MCFs in Mumbai and Farrukh nagar to introduce a degree of operational excellence and cost efficiency.
To cater to the growing demands of customers in urban areas, the company is developing a network of technology-driven, sustainable and compliant urban logistic hubs designed to offer a full range of sustainable omni channel services. These services include order fulfilment, last stage packaging customisations, digital marketplace, last stage readiness and cross docking. Green last mile delivery here is a crucial aspect. It is backed by plans to put in place an EV charge infrastructure. These in-city hubs are connected to FM Logistic’s large MCFs located outside city limits thus enabling the company to offer end-to-end supply chain that features surface transportation prominently.. FM Logistic will extend it to its warehousing infrastructure in tier2 and tier3 cities thereafter.
FM Logistic’s sustainability strategy focuses on employee well being as well as the environment and eco-efficient services. The 3PL player has ramped up initiatives to include specially-abled collaborators in its operations. Through the FM Academy, collaborators are groomed in best practices followed in the supply chain industry. This grooming through regular training helps them to move up the corporate ladder within the organisation. The company has also launched the ‘Young Talent Acquisition’ program to recruit young professionals and is aiming for a LEED Certification for its Farrukhnagar MCF – a first-of-its-kind certification for a 3PL service provider in India. Solar panels for energy generation, rainwater harvesting, sewage treatment plant, fully insulated for energy efficiency, drivers’ relaxations quarters, crèche, training centres and medical room are now standard offerings across FM facilities.
Resilient IN crisis
Despite facing unprecedented times during the pandemic, FM Logistics in India has proved its resilience by adding 10 lakh sq. ft. of warehousing space under its operations amounting to a 20 per cent growth in its warehousing footprint pan India. It recorded a growth of 58 per cent in turnover during the first half of FY2021-22. The company is also setting out to achieve an eight per cent annual growth in urban logistics between now and 2030. Although Covid-19 brought with it many challenges, it also gave rise to many opportunities like bringing acceleration to the omni channel and e-commerce business. Soufiani highlighted that 60 per cent of contracts signed by FM Logistics are omni channel operations.
Talking about building resilience, he cited the company’s endeavour to become the reference partner in the field of sustainable omni-channel supply chains in India. “We continue to carry out our expansion plans and reinforcing our offer of end-to-end supply chain services,” he informed. The company is focussed on developing Grade A MCFs, dedicated warehouses near customers’ manufacturing centres, and modern urban logistic hubs – all interconnected with an agile and dense transportation and last mile delivery network, he asserted.
New Developments
At the conference, Alexandre Amine Soufiani, MD, FM Logistic India drew attention to performance of the company in the first half of fiscal year, it’s ambitions, five strategic pillars, progress and initiatives, and logistics real estate. FM Logistics in India has tripled in size today compared to when it entered India in 2016, growing in size by 20-25 per cent annually, he stated. Focussed on the domestic contract logistics, the company has been managing over six million sq.ft of space in India, he added further. Acknowledging the fact that supply chains must transform to foster a more responsible consumption and sustainable economy, the 3PL company introduced its new tagline ‘Supply change’ keeping sustainable development at its core. It is catering to the rising demands for omni channel commerce, especially in urban centres, which is driving demand for out sourced logistics services.
Already showing good signs of growth, the company is getting awarded with new contracts in the FMCG, retail, omni-channel, e-commerce and engineering sectors. FM Logistics India has bagged a contract to manage a dry grocery hub in Bengaluru apart from already handling it’s Gurugram hub. Handling end-to-end activities for a leading beverage manufacturer including customs clearance, secondary distribution and warehousing besides handling and packaging of fragile items, managing the in-store logistics operations for a leading international home furnisher, carrying warehousing operations for leading kids wear brand and managing end-to-end supply chain services for a leading food manufacturer are some of the other opportunities seized by the company. In addition to this, on the distribution front, the company has signed contracts with leading players in the FMCG and engineering sectors expected to hold it in good stead. Some would say, it is off to a good start en route ‘powering 2030’.
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