Restructuring the Distribution System to shorten the Delivery Times

Restructuring the Distribution System to shorten the Delivery Times

The client is a leading distributor of FMCG products and is a member of a large conglomerate.  The client was experiencing minimal growth in top line and market penetration, especially into the rural areas.  The project assigned to us was to relook at the distribution channel and restructure to ensure maximum penetration into the island wide resellers and to create a robust control system to ensure sell-through and volume growth is sustained.

A survey was conducted amongst a selective number of resellers and retailers to obtain feedback from them on the client’s operations.  The distribution model existent was not reaching out to all the retailers island wide due to lack of logistic support and practical aspects on storage facilities.  A hub and spoke structure was designed with regional re-distribution points with sub re-sellers with the client’s staff working in tandem with them.

The project completion resulted in the client reaching over 90 percent market penetration with the topline growth going beyond their budgeted levels.