Everyone in the economy uses fast Moving Consumer Goods (FMCG) products. Being smartly priced and packaged, they offer great convenience to the consumers. The critical factor here is the ability to go to your neighbourhood store and purchase the product of your choice. To ensure that this process runs smoothly, FMCG companies must have an effective delivery channel. No matter how well you have planned your product’s marketing strategy, the consumer will purchase a similar product of another brand if it is not available in the shop. This gap highlights the need for an efficient logistical system across India.
These are the companies that manufacture and sell FMCG products which mainly consist of non-durable household goods. There are quite a few FMCG companies in India that cater to the burgeoning domestic demand for consumer packaged goods. Considering the breadth and span of India and its diversity, there is tremendous scope for companies looking to enter the FMCG business.
Now, what exactly is an FMCG company? Companies that produce and market consumables such as packaged foods, beverages, toiletries, dry goods, OTC drugs, etc., are called FMCG companies. They typically are characterised by high volumes, low margins and extensive distribution networks. Their products come in small packages and technically have a short shelf life, as customers frequently purchase them.
FMCG is India’s fourth-largest industry, with rising awareness, more accessibility, and changing lifestyles driving its growth. Household and personal care products together account for around half of the total FMCG sales in India. The other two main segments in this sector, food & beverages and healthcare, account for the remaining half.
Dabur India’s first FMCG company has grown its rural network to 52,000 villages in 2020 from 44,00 villages in the previous year. There is a massive spurt in the online grocery market as well in India.
Benefits of DMS for FMCG companies
As previously stated, the ease of availability of an FMCG company’s products is its primary sales driver. These products reach the companies target consumers through various distribution channels. To ensure things run smoothly, the company needs a proper distributor management system.
Technology can and is used to provide the management with real-time data on the supply and demand situation in the market. FMCG companies need an efficient distributor and consumer management system to forecast consumer demand accurately and regularly cross-check that against inventories held by distributors. To truly develop a pan India presence, these companies should consider tying up with the top FMCG distributors in India.
Business data on the go
Consumer goods companies need live information from their FMCG distribution channel regarding:
- The stock of FMCG inventories such as current stock with distributors
- Pending orders.
- Orders returned by retailers.
If you are looking to enter the FMCG distributorship business, you need to get in touch with their regional representative, wholesaler or stockist.
Remote logistics & inventory management
Being the fourth largest industry, FMCG contributes significantly to the Indian economy in revenue and job creation. A good DMS will keep the company appraised about the inventory statuses at consumer goods and FMCG products distributorships even in remote locations across India.
Boon for distributors
While attempting to implement a DMS in your FMCG distribution network, it would be natural to expect opposition from companies offering distributorship in your channel. People are always wary about how new technology will impact the existing business model. However, the automation of all the tedious tasks will simplify your distributor’s life.
Faster claim settlement
Most of the tasks will be automated in the DMS, allowing for greater transparency that enables faster claims settlement with the top FMCG distributors in India. This system provides accessibility for online claim processing, which is quicker than the manual process typical in the FMCG market in India.
Enhanced control over trade promotion and schemes
The DMS will give companies a seamless FMCG distributor management experience which will also aid them in carrying out marketing activities. This distributor management system will provide them with better control over trade and promotional schemes that they launch in India.
Timely stock replenishment
You will be able to maintain optimised stock levels at each level of your supply chains, such as retail merchandiser, consumer goods distributors, and stockists. Your DMS will function as an effective retail distribution management system, ensuring that your products are available at all consumer touchpoints.
Improve production planning
The DMS will provide you with vital information regarding inventory already existing in your delivery channel versus the pending orders. This data is instrumental while making your production plans and can help you minimise wastage and storage costs.
Standardise the distribution process
With all the distributors using one DMS, it will help tackle all the glitches that existed in the previous manual system. This standardised process results in one sizable unified view of the entire process and eradicates any possibilities for errors and misunderstandings.