Table of Contents
Introduction
Allcargo Logistics announced that it will be launching PTL logistics services for FMGC supply chain which will be technology driven and integrated with the current supply chain system. This new supply chain management will be in addition to the current FTL services that company provides to FMGC companies. According to Allcargo logistics, this bold move was taken considering the continuously changing FMGC market scenario. According to Allcargo, this new logistics service will improve supplier relationship as more efficient supply chain management can be obtained.
Current Warehousing and Supply Chain Management System
Recent changes in FMGC landscape have made logistics companies to make more innovative decisions. When compared to five years back, current supply chain management is more complex. Five years back, the supply chain was very much linear as products would be manufactured at production plant and then warehousing would occur at depots. From depots, these products would be transferred to distributors and retailers, thus completing the supply chain.
However, nowadays, supply chain has become more complex as many FMGC companies focus on logistics for products that are more in demand due to changes in customer demands. Nowadays, customer buying pattern has changed a lot due to introduction of quick commerce. Customers are not interested in buying FMGC goods at the start of month but order product when they need it. Customers have become more aware about products that they use and therefore only select products that fits their needs. Customers also do not trust brands as before and are ready to switch to new brands if product quality is better from new brand.
These customer changes are significant for logistic companies as it has increased inefficiency in supply chain management for various logistics companies. Current FTL scheme of loading FMGC products is not as viable as before due to changing buying pattern of customers. Previously, FTL was suitable in supply chain as most FMGC companies would only require to send their products to warehouse for warehousing purpose. But nowadays, companies need to send their products not only to their warehouse but also to Qcom warehouses.
Future focused Supply Chain Management Changes in Allcargo
Allcargo announced that it will be introducing advanced software integrated supply chain management system that could help improve its logistics operations. However, the cherry on top for the company is announcement to introduce PTL (Part Truck Load) system, where logistics from different FMGC brands would be packed in a single truck load. Previously, Allcargo logistics only used FTL loading system, which is predominant in all logistics companies. However, this changed with the announcement made on 15th April, 2026.
Reasons That Led This Change
Since current FMGC market scenario has made supply chain system more complex, it is critical to have a very efficient logistics system in place.
Each year new products are launched and they compete against the existing products for same customers. Moreover, acquisitions of startup based FMGC companies also introduces new products in portfolio of bigger FMGC companies. These factors have led to demand fragmentation among customers and requirement of smaller shipments. Many of the shipments are smaller in size and therefore do not require FTL. Therefore, enabling PTL will allow Allcargo Logistics to move shipments much earlier and at reduced costs.
Supply Chain Benefits For Allcargo
The introduction of PTL (Part Truck Load) will be beneficial for both Allcargo Logistics as well as FMGC brands. The smaller shipments will help to pack trucks much faster resulting in faster delivery of products. It will also increase truck usability as FTL takes more time and therefore, for that duration the trucks become inefficient. Implementation of automation and software based logistic system will help to identify the different loads that can be packed together for same destination.
Conclusion
This recent announcement from Allcargo Logistics will surely give tailwinds to company revenue as well as open new directions in logistics world. If the move is successful, it might help company generate good revenue as well as capture larger pie of logistics market share. Bringing this change will help company to increase efficiency of its trucks and logistics network. Moreover, integration of software in logistics network will help to identify the bottleneck issues and make proper solutions to deal with them.
If the earnings of next quarters show improvement and earnings call gives an idea about the impact of changing the loading policies, Allcargo logistics might be a good share that might go on to become a multibagger in near future. Similar multibagger shares ideas are available at Dalal Street Advisor which can help you build a resounding portfolio to help it become more than 2x of its current value.
Frequently Asked Questions
Full Truck Load (FTL) refers to a dedicated truck service that only provides shipment services to a single supplier. It will only take goods from that supplier to destination mentioned by that supplier. FTL is used by suppliers as it allows faster transit time as well as minimal damage to goods during transit.
- There is risk of theft especially for higher value goods.
- There are more regulatory compliances to follow when using FTL services.
- FTL services are scarce during peak festive seasons as well as when high demand seasons.
- There is always shortage of good labours as well as truck drivers needed to handle FTL services.
- Since, FTL services are dedicated services, most suppliers need to track real time their goods, as any delay can disrupt the workflow.
It is a cost effective logistics delivery system where goods from one supplier shares space with goods from other suppliers. It is used only if there is no urgency when compared to FTL services. In most cases, a supplier shipping at most 10 standard pallets of goods should go for Part Truck Load (PTL).
Part Truck Load needs multiple stops for loading goods as well as unloading goods. These stoppages means that urgent goods cannot be delivered using PTL system. Moreover, risk of damage goods is relatively higher in case of PTL when compared to FTL services.
Nowadays, demand had become more fragmented and many startup FMGC brands have loyal customer base. Thus, even though volume is low but demand frequency is very high requiring more frequent shipments. Here PTL is more beneficial for both suppliers and logistics company.