How to control dead stock in FMCG .

How to control dead stock (Damage) in FMCG .                                        For more details

 The term “damage” in FMCG means unsold goods. All that goods which the shopkeeper unable to sale or reach to the expiry date  are called damage or stale. Damage are of two types A. Products which do not get sold ,  reaches to the expiry date  B. Manufacturing defects or air leak or breakage during transportation .

Now all the goods either from point no A or B , becomes unsalable . Hence the distributor need to take these goods  back from the market. Because if consumer consumes damage goods,  there is a strong possibility of arising  health problem.

Distributor again claims the damage goods value from company. This is the main stage where we need to be very careful . All the company verifies the damage quantity before settlement of claim. Some company takes the goods back to CFA or Factory or  destroy at distributor point.  Company may hire any third party auditor to verify damage goods or in some cases Sales Officer /ASM can destroy. Before destroy you need do counting each and  every pieces, other wise counting mistake can result in financial loss to the company. When counting is over , destroy all the goods , so that nothing left for human consumption or reclaim. Take photographs and send with the company claim sheet. If the damage amount is huge like Rs500000 or more then you can count randomly . Distributor keeps damage goods in carton or in some bag and writes down quantity inside that carton or bag. Suppose there are 100 bag or carton, you can count 10 bag from the lot.

Already I have explained the types of damage , Point no A can be minimized and point no B cannot be minimized .