How Inefficient FMCG Distribution Slows down your Business and Ways to Prevent it

FMCG Distribution

FMCG done right could be one of the most profitable businesses, but it can also quickly turn to losses as you primarily handling perishable goods with limited shelf life.

If you fail to move your goods efficiently or products reaches destination late, your label may no longer carry its best appeal. Moreover, the best shelf space could be already taken by competitor product, relegating your products to receive lesser eyeballs and attention.

An Inefficient distribution system is a characteristic mistake of starters and locally focused business. In these situations, your products tend to gets to sidelined for bigger corporate with a more streamlined inventory delivery channels.

Managing your Inventory is a Highly Demanded Skill

Major Corporations and companies for long have put emphasis on inventory distribution channels. It makes inventory management into a highly prized skill in the talent market.

For example, Apple CEO Tim Cook is mainly responsible for optimizing inventory flow across apple factory and retail outlets. Now you know about the Steve jobs perspective about the importance of distribution channel at your inventory channel.

Even as you can’t employ an inventory management specialist like Mr.Cook, acquiring necessary tools and information could help you streamline the inventory flow.

Here are the ways, where inefficient inventory flow could slow down your business along with ways to positive ways overcome them.

It makes your product sales more admissible in a competitive market Place.

Getting Maximum exposure at Retail Chains

inventory management in fmcg industry


It’s said that a sign on a good inventory system is that a ‘product at the manufacturing unit would be stamped with its intended shelf spacing.’ There are immutable practical difficulties in achieving this efficiency. For example, market demand is a continually fluctuating factor, which continually shifts your available space in the retail shop. Without due attention, you can end up with an excess manufactured inventory without the possibility of selling space.

According to studies, it’s getting maximum retail space shelf exposure and latest manufacturing dates that determine the chances of selling a particular product. When one stack could be had by only one retailer, a store’s best possible spot gets maximum attention and maximum buys.

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There are five main factors that a retailer could help you achieve the best retail space:

It could be classified into the following sections.

    1. Calculating Allocable Space
    2. Understanding Retail Demands
    3. Delivering Latest Manufacturing Dates

A CRM Stock Management can give you a clear understanding of all these factors, even at a retail-root level. With products placed in a continually moving industry, having an accessible format of selling your products is critical for businesses. With a CRM system, your retail staff or staff can periodically update the stock availability at retail outlets. This data enables you to deliver the latest product dates at retail outlets, enabling you to deliver products as they run-out.

Managing Product Manufacturing Flow

Manage Product Manufacturing Flow


As enumerated above, there are obvious incentives for getting latest-dated products in the hands of the consumer. In a busy FMCG Industry, a desirable product availability date could vary within a day to two weeks at its maximum.

In this scenario, you need to acquire an accurate perspective about leveraging optimal manufacturing date and procuring necessary raw material. Consequently, you can also manage to procure raw materials and manufacturing process for a given time period. All these help you get maximum product output within the prescribed budget.

Through CRM Processing, you manage your manufacturing process that it fits into your window of opportunity. It enables you to manufacture your products in the most efficient way while giving your customers the latest dated products. As CRM processing pans out every detail, you can get the best prices for the latest goods.

Managing middlemen and Specifications

Manage Inventory Network


For managing an inventory network and distribution, you might be working with middlemen and distributors. More often, your distribution channel may have individual motivation or incentive for selling your competitor product. In this scenario, your competitor product could be pushed instead of your product, resulting in a slow down of your sales.

Running an FMCG enterprise involves ensuring that your product is not sidelined to benefit your competitor. A CRM Software allows you to constantly follow your product demand across marketplace and time. This helps you instantly recognize any irregularity in product demands or stock flow.

Being an industry where both time and price are the deciding factors, FMCG is hard to manage through the human overview. A CRM system streamlines your processes from manufacturing to retail stores, achieving better efficiency and profit margins. Contact us to know, how a CRM system could improve your FMCG Inventory Management.


2 thoughts on “How Inefficient FMCG Distribution Slows down your Business and Ways to Prevent it”
  1. Its a very useful information. Any organisation that carries an inventory of products has a need to maintain accurate information on the movements of all these items to better serve its customers and run a profitable business.

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