Supply chain management FMCG Industry

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Macroeconomic Factors Impacting Distribution System

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Industry Analysis

Total size of non-alcoholic packaged drink market is approx. Rs 7000 crore is pegged at 660 mmcs (million unit cases) in

Juice

terms of volume (juices, nectars, fruit drinks all included)

Out

of these, fresh juices are estimated at 570 mmcs carbonated soft drink market is approx Rs 2500

and packaged juice at 90 mmcs

Non

crore
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Types of Beverages

NCSD includes Fruit drinks, Nectars, and juices. drinks: below 20% fruit pulp 20-85% fruit pulp

Fruit

Nectars: Juices:

above 85% fruit pulp

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Major Players in NCSD

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Parle Agro

Leading food and beverage company ever company to introduce mango drink is over Rs 1000 crore

First

Turnover 1000+

employees on innovation and refreshment with

Focuses

purity in products

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Parle Agro Businesses

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Products

Saint

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Manufacturing Plants

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Features Of FMCG Supply Chain

FMCG There

has one of the longest supply chain are as many as 5 intermediaries

involved in entire supply chain before reaching to the customer

Generally

different channels for different

products of the same company

High

volume game less margins for intermediaries

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Comparatively

Parle Agro Supply Chain

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Contd.
CFA:
Generally

one CFA in a particular territory. CFA does not own the goods. Low margin but very high volume

Distributer:
Distributers

are appointed area wise They own the goods They get goods from CFA Moderate margin

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Contd
Retailer:
Tertiary

level intermediary in the distribution

system
Plays

with low volume high margin

Comparatively Direct For

communication with final consumer

very big retailer, dedicated distributer

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allocated

Margins At Each Stage

Manufacturer: CFA:

Not disclosed

Approx. 2% Approx. 5%

Distributer: Retailer: Above

10-15%

mentioned margins slightly vary

depending on demand, schemes by company or promotional offer

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Factors Considered While Appointing Any Channel Members

Reputation Type

in the market

of other products for distribution with requirement fulfillment

him
Warehouse Vehicles

available offered

Infrastructure

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Some More Information About Distribution System

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Advantages of Current System

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Challenges in Current System

Managing

different intermediaries with

their demands
Preventing

retailers buying from other

distributers allocated to them

Maintaining

standardization among

intermediaries

Retaining intermediaries for longer time different margins for 4/18/12 different

Maintaining

Strategies to Promote Healthy Relationships

Incentives Various

offers, schemes meetings

Periodically Gifts

at occasions through that particular member pricing

Promotion

Promotional

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Thank You

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