Is your distribution business overstocking? Then it’s probably time to make positive changes to your inventory management. Businesses lose sight of the consequences of carrying more stock than is required, and this is a common folly among enterprises big and small. The all-too-obvious risk is that the amount you spend to store inventory just goes up. There are other pitfalls as well. As the expiration dates of these products draw near, depreciation kicks in, which means the value of these goods might take a big hit! Now for the worst part. Trends come and go, so goods held too long in storage, like, say, fashion wear, might have to be sold at a steep discount, junked, or handed to charities. So, a distribution management system is a must. What if you choose to stock less? Keeping too little stock on hand or keeping the inventory levels as close to zero as possible can also be quite risky. In light of supply shortages and retail customer frustration resulting from such “lean inven...
Real household spending in India is getting back on track after two years of lowered spending amid lockdowns and public health measures necessitated by the Covid-19 pandemic. Led by urban consumer demand, the fast-moving consumer goods (FMCG) sector in the country is seeing an upward growth trend. Rural demand for FMCG is also showing signs of a major recovery. FMCG companies are going head-to-head to capture consumer wallet share, and the competition will only intensify in the short-to-medium term. Product quality is given in the sector, and most products deliver near-identical benefits. So, FMCG brands can no longer hope to cut through the clutter and wow customers solely on the basis of product performance. Increasingly, these businesses are seeing speedier and cost-effective transportation and delivery of products as value propositions to attract customers. This has huge implications for distributors since it’s essentially their responsibility to take the brands faster t...