How-CRM enables FMCG Industry to align product Demand and Supply

Five Ways Manufacturing CRM can Align Product Demand and Supply?

How-CRM enables FMCG Industry to align product Demand and Supply

It’s the fundamental rule of the FMCG industry – Everything that isn’t sold affects your bottom line and erodes the profit margin. Presently, you can add a number of related variables such as transportation cost, raw material procurement, manpower, etc.… Finally, you need to combine all these factors even to have a primary understanding of the right pricing in the FMCG industry. In this situation, balancing the demand and supply becomes the chief objective for a manufacturer.

CRM-based Manufacturing lets you control and modulate the different factors that are involved in managing your distribution operations. By systematically connecting and coordinating between different activities, you can eliminate or bring down numerous attached expenses. This includes transportation, excess production, unbalanced production, raw materials procurement expenses etc…

In a simple sense, having your retail and manufacturing aligned lets you derive a systematic way of managing your network operations.

In this article, we shall examine the different aspects of managing production to retailing through a CRM platform.

Account for Each Retailer in creating product Demand

In many FMCG sectors (like the Food industry) the retail demand is still the deciding factor. With achieving good retail level penetration, you can increase your product sales and visibility for your particular product. This enables you to increase your retail sales while accounting for each sale of stocks.

Through CRM retail collaboration, you can streamline all retail demand to a single interface. This enables you to account, follow and predict retail demand with respect to a specific output.

As it is, it could be explained as given below.

Initially, individual retailer orders get collected through a CRM ordering system.


Afterwards, all the procured orders are streamlined to a single dashboard. By having a single dashboard display of procured orders at all points of time, you can keep track of the retail demand for each product during each manufacturing cycle.

CaptureBy initiating geography based segmentation, you can also follow-through with accurate product demand concerning each location. CRM based order management lets you view and manage all incoming orders coming through your extensive retail network.

Follow the Demand of Individual Product

For an FMCG enterprise with a wide variety of product portfolio, it may easily get confusing to follow the actual product sales within a list of available products. In-order to have a functional end-to-end product portfolio, you need to understand and follow the demand for individual products.

In the FMCG Industry, it’s common to have uneven demand for various models produced by the same enterprise. Even as the entire product portfolio goes through an overall spike, the individual products could be suffering from a loss of demand. CRM based retail analysis lets you record the order and demand for each product model, consolidating all procured orders into a unified dashboard.

This helps you increase the overall demand for product.

Cut-off avoidable Distribution Costs

With the increasing number of retailers, the retail chain has generally become an intricate and complex network. When businesses are looking to maintain a sharp and updated retail distribution, it drives up the associated costs – such as transportation and manpower.

All these get added-up to final product cost affecting the final retail price. In-turn, this final price could significantly improve or blunt your edge over competitors providing similar products. CRM-based retailing lets you follow and predict the retail demand associated with each outlet. This helps you reduce the number of transits that reduce the final cost and increase profit margins.

CRM analysis lets you can predict the overall demand for all available products. It also lets you forecast the upcoming product demand across your product landscape. By consolidating every incoming order, you could obtain a data-oriented prediction for upcoming orders.

Develop optimal strategy or product distribution

It’s common to see unequal product demand and distribution across the retail geography. Consequentially, the producer may provide new goods rather than relocate the excess stocks from one point to another. This could turn into the recurring cause of revenue loss. With CRM-based inventory management, you can align distribution to actual product demand.

CRM-based analysis lets you geographically segregate each section into a distribution network. It also lets you assign a specific number of retailers to a particular distributor. This lets you easily procure goods to the concerned channel while preventing excess stock of goods at each concerned segment.

Here, a distribution based on Geography allows each manufacturer to avail goods based on a retail chain. It also helps you to predict product demand for each individual section.

Manage order negotiations and Revenue Discussions

As you start to streamline your production and retailing, you could have better leverage to get better prices and improve the margins for your products. With CRM inventory management, the entire available inventory list could be aligned to meet the demand. Henceforth, you no longer have to cut prices to push excess goods. Thereby, you could also improve your product quality, ensuring an increase in future demands.

All order negotiations with the vendor or retailer would be available to the concerned manager. By managing order negotiations through a single channel, it achieves an accurate picture of revenue acquisition at each time point.


With increasing competition and market options, manufacturing firms cannot afford to be just a producer of goods. They also need to be providing the goods at right balance of price and quality. CRM Customized for manufacturing can meet the specific challenges and provide custom solutions for the industry.

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