Role of distributor in FMCG channel.

1. Investment.                                                                                                                                             For more details

Distributor need to invest in a particular brand as per agreement with that company. At the time of appointment, company asks for investment as per sales volume . Different company has different investment norms. For example 15days, 21 days or may be 25 days. In general 21 days investment is commonly seen in Indian FMCG market.

2. Purchase from company or super stockist.           

His primary job is to place order and payment to the super stockist or company. As he is a channel partner , he need to get the stock from super stockist or the company.

3. Maintain godown stock.     

 He need to maintain a certain level of stock at his own godown for day to day market requirement. Different organization have different stock norms , like 7days,   10 days or 15 days. In FMCG, distributor need to follow company norms  strictly. Distributor need to supply to his market on daily basis, but company or super stockist cannot supply him daily. Shortage of stock at distributor’s godown will hamper sales figure for the month. Also consumer for that particular brand will shift to competition brand .

4.Maintain hygienic condition at his godown.     

                        

As the distributor need to keep stocks at his godown, it is very important to maintain hygienic condition in his godown. Godown should kept neat and clean, proper ventilation, and water should not come in during monsoon. Godown should be germfree.

5.Distribution.  

FMCG Distribution

Supply to market on regular basis, is the key responsibility of a FMCG distributor. It may be retails or wholesale market , he need to supply on regular basis . Company’s market share , sales revenue , sales volume depends on effective distribution. He need to find new outlet, new area or new market.

6.Payment collection.                  

Payment collection is lifeline of FMCG distribution business. Distributor has to give credit in retail and wholesale market to get his desired sales volume. Hence timely collection of outstanding from market is very essential, otherwise survival in business is impossible .  Normally distributor appoints some sales man for sales and collection, he need to monitor all these sales people.

7.Product visibility in market.      

Product visibility in market is essential for FMCG product, Distributor need to focus on this . He need to use POP /POS  material , and any other company  provided  material for product visibility( Some company provides Rack , Hanger and Dispenser). If company provides some display scheme , he need to use  these  properly.

8.Collecting unsold stock.              

Maintaining a good relationship with trade channel leads a success in business. And to maintain a good relationship, distributor need to give proper service in the market. Collecting unsold stock from the market reflects the sign of good service. Also it reflects a good brand reputation. Different organization have different damage  collection policy, distributor need to follow organization’s policy  carefully .

After collecting unsold stock , distributor need to inform company personnel for claim settlement.

9.Market expansion .     

Distributor need to find new outlet, new market and new customer. Also he need to place new product to existing and new customer. That means distributor need to penetrate optimum quantity into the trade channel.

10.Keeping ground level data.      

Distributor keeps ground level data and provides them on demand. Ground level data like number of retailer and wholesaler ,number of beat , daily and monthly sale figure etc.