The fast-moving consumer goods (FMCG) industry is one of the most dynamic and competitive sectors. It is also challenging to operate in, as it requires a robust and efficient distribution network to reach customers across diverse geographies and markets.
The key factor that determines the success of an FMCG company is its ability to scale up its distribution network and expand its market share. Scaling up means not only increasing the volume of products sold, but also adding new product categories, new channels, new regions, and new customer segments.
Let’s Identify the Risks First!
Scaling up is not an easy task. It involves overcoming various obstacles and risks, such as:
– Finding and onboarding new retail stores that can sell your products and meet your quality standards.
– Managing inventory levels and ensuring timely delivery of products to avoid stock-outs or overstocking.
– Dealing with price fluctuations, demand fluctuations, and changing consumer preferences.
– Competing with other FMCG players who may have more resources, experience, or market presence.
– Complying with local regulations and norms that may vary from place to place.
How To Scale Up Your FMCG Distribution Network Then?
Here’s how an FMCG company can scale up its distribution network effectively and efficiently!
Scout for new retail stores constantly: One of the most important steps in scaling up your distribution network is to scout for new retail stores that can sell your products. You should look for stores that have a high footfall, a loyal customer base, a good location, and a compatible product mix. You should also consider the store’s size, layout, infrastructure, and willingness to cooperate with you. We help you do that and take this burdensome task off your shoulders!
Onboard new retail stores quickly and smoothly: Once you have identified potential retail stores, you should onboard them as soon as possible. This means signing contracts, providing training, installing equipment, delivering initial stock, and setting up payment systems. Again, we got you covered when it comes to retailers onboarding too!
Optimize your inventory management and logistics: Scaling up your distribution network means handling more products, more orders, more deliveries, and more returns. You need to optimize your inventory management and logistics processes to ensure that you have the right products at the right place at the right time.
You can use data analytics and forecasting tools to predict demand patterns, plan production schedules, manage inventory levels, track shipments, and handle returns. You can also leverage technology such as RFID tags, GPS trackers, barcode scanners, or mobile apps to improve visibility and efficiency throughout the supply chain.
Maintain product quality and freshness: One of the biggest challenges in scaling up your distribution network, especially if you’re a start-up, is to maintain product quality and freshness across long distances and multiple touchpoints.
You need to ensure that your products are stored properly, transported safely, handled carefully, and displayed attractively at every stage of the distribution process. You should also implement quality control measures such as inspections, audits, tests, or feedback mechanisms to detect and correct any issues or defects before they reach the customers.
Adapt to local market conditions and customer preferences: Scaling up your distribution network means entering new markets and reaching new customers who may have different needs, tastes, preferences, or expectations than your existing ones. You need to adapt your products, prices, promotions, packaging, or communication strategies to suit the local market conditions and customer preferences.
You should also conduct market research and customer surveys to understand the opportunities, challenges, trends, gaps, or feedback in each market and segment. Awign helps you reach out to the best retailers in any locality across the country.
But Why Choose Awign to Scale Up Your Retail Network?
As India’s largest work-as-a-service platform, Awign empowers enterprises and start-ups by offering end-to-end management and execution of critical business functions through a mobile, distributed gig workforce across the nation.
With Awign, you can easily find and onboard new retail stores anywhere, anytime, and within any budget. Our network of skilled and verified experts will take care of everything for you, from finding suitable outlets, connecting them to your distributor, placing the first order and ensuring delivery.
Not just that! Our retail activation services also ensure that you:
- Increase your market penetration and reach new customers
- Save time and money on hiring, training, and managing field staff
- Track and monitor the progress of your campaigns in real-time
- Get detailed reports and insights on your performance and ROI
You can scout retailers, onboard them and build your retail network in over 19,000 pin codes and 500+ cities across India with Awign!
Finally, scaling up your FMCG distribution network is a complex and challenging task that requires careful planning, execution, monitoring, and evaluation. Our retail activation services aim to help you grow your business exponentially! By following these tips and best practices, you can scale up your distribution network successfully and achieve your goals.
Want to scout the best retailers and onboard them for your business with Awign’s Retail Activation solutions? Let’s talk.
Also Read:
