Champions of the industries like FMCG, CPG, Food & Beverages and Pharmaceutical industry are like a big Banyan tree whose roots are spreaded deeper within earth. Similarly the champions are champions because of their on time presence across the length and breadth of the global market and their quick response to the market demand. Your success in these above mentioned industries depends on effective distribution management and with manual methods you cannot achieve that. Without having real time market insights you cannot survive in today’s highly competitive business world. That’s why the demand for the distribution software is very high. Here are the obstacles faced by organizations managing distribution manually.
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Why you should use a comprehensive distribution software
If you want to be champion in FMCG or CPG (Consumer Packaged Goods) industry you have to be the GOD of distribution. The success mantra for excelling in this industry are:
- Ability to identify the need of consumers quickly
- Inventory optimization
- Just-in-time delivery
Days are gone when these brick and mortar FMCG/CPG companies used to follow the push strategy i.e. make and push the inventory to the channel partners (CFA, Stockist,Distributor) by stimulating them by offering various schemes in this believe that their channel partners will take care of the secondary sales.
Let’s define primary sales and secondary sales first. Sales which occurred between companies to channel partners (CFA/Stockist/Distributors) called primary sales and sales occurred between these channel partners to retailers called secondary sales.
FMCG, Pharmaceuticals, Life Science are few of the industries where the success mantra lies in effective end-to-end distribution management. Fierce competition, rapidly changing market dynamics, changing customer’s preferences, globalization, and arrival of new entrants are few of the major challenges facing these above mentioned industries. Just-in-time delivery, resource optimization and process automation are the three key areas where every organization is focusing today.
Distribution software
The success of any FMCG brand is depend on three pillars:
- Just in time delivery
- Inventory optimization
- Accurate demand planning
Having effective distribution cycle plays a crucial role in achieving these above mentioned pillars. Today the biggest challenge is to get real time secondary sales data which is very important for reducing time to market, accurate demand forecasting and stock outs. The distribution cycle is the most important and arguably the most intricate process that needs to be understand pervasively if you want to be ahead of your competitors. The CRM and ERP software’s available in the market unable to do that. Let’s find out why?
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