FMCG industry has taken a rapid pace among growing industries and transforming local markets. Weather it is eatable or housekeeping stuffs, customer demands are raising looking towards more comfort day by day and it is obvious in a swiftly developing country.

Especially metro cities and urban areas are turning outto be most welcoming new demands and satisfying them as a result small firms, SME can take place in the game promptly. New innovation bringing new opportunity, emerging manufacturing industries, workers are getting skilled on a huge market coverage, skilled are getting more skilled but unfortunately industrialist, distributors, wholesalers have not kept an eye towards distribution channel. When high demand is being focused distribution channels are just required to satisfy the needs but improve the process of distribution.

Current Challenges In Distribution :

There is the impossibility of offering a homogeneous level of services throughout the country. This problem is especially relevant in the case of customers belonging to the organized FMCG distributors, the elevated requirements from a logistics point of view of this type of distribution (urban last-mile, many small deliveries, perishable products, frequent problems in the billing process) and the great volume of resources that are involved, mean that few manufacturers can offer a uniform level of services in all geographical zones.

On the other hand, the other structural problem identified in this type of distribution is the elevated costs associated with the order-delivery-payment cycle. It is estimated that these costs in the distributors channel are four times greater than in large-scale retail. These high costs in comparison with other logistics systems are due to multiple factors (very small orders, very frequent deliveries).

Strategically oriented companies realize that the key element of long-term success is increasing interdependence. These proactive companies understand that strong long-term profitability can be achieved by creating and promoting positive relationships, mutual benefit between members of distribution channel.