FMCG distribution :
FMCG distribution Based on Hub and Spoke model of distribution
Samyojak acts as key person in whole distribution model
Samyojak invests capital in purchasing FMCG stocks
Samyojak gets stock from WD
On purchasing price itself margin of Samyojaks are added and then supplied to retail counters
The cost of distribution to retail counters termed as “K4” is incurred by ITC ABD
Cont… :
Cont… ITC-ABD has partnered with 4 other FMCG companies for their product distribution under this model
A particular area have to be served through a Hub
The whole area after surveying, is segmented and is served through different routes with the help of salesmen
Movement of FMCG Product :
Movement of FMCG Product
Focus Area :
The whole branch team focusing on following parameter
NOR – number of routes
OLS – Outlet serviced
OLP – Outlet Productive
ALC – Average Lines cut
The above parameters are reviewed at the end of every Van Cycle - VC
The branch team also focusing on reducing K4 cost Focus Area