Connecting The Totem Pole Of FMCG Supply Chain

by Rituparna Nath

January 13, 2022 | 01 min read

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Have you ever jumped over an edge for a good view?

If you have, you’d know that it’s not about ensuring that you cross over. That part’s driven by adrenaline. 

It’s actually about being strong enough to come back to the other side without falling. It’s about ensuring that your thirst for a good view, doesn’t end up turning life upside down.

Today, in reality, many FMCG giants are standing on the other side. 

They had jumped over the edge to view greener pastures by shaking hands with online b2b marketplaces which buy directly from these FMCG companies and sell to retailers at a lower cost and higher ROI.

But soon, revenue took over trust, and the land on the other side started crumbling, making these FMCG companies wary that they might be in for a deep fall. 

When the smallest of retailers started realizing that they could skip their market visits and save time and money by tapping on their phones and ordering from these online platforms, they began to ignore the distributors who have worked with them for decades to build the business.

As a result, distributors have started threatening FMCG brands of boycotting their products, unless these companies discontinue selling to b2b marketplaces, which is disrupting the supply chain harmony.

And this is just at the beginning of 2022. In a year when the retail industry desperately needs to recuperate from the business losses due to the pandemic, CPG brands are stuck at headwinds.  

But the question also arises: if leading CPG giants are caught in this bind, how can new and emerging brands tackle this problem?

According to industry experts, the most sustainable way to solve this would be to connect the entire supply chain distribution hierarchy, by transforming the route-to-market (RTM) into an eRTM.

How does that help?

eRTM combines tools and techniques to ensure that the flow of goods and revenue within the supply chain is more efficient and 100% frictionless.

For example, instead of only giving retailers the option of buying from b2b marketplaces, CPG brands can build their very own b2b marketplace in a few weeks using a platform like Bizom, and let retailers directly purchase from the brands. 

This can omit overstock, reduce the lead time taken to fill the retail selves and act as a medium to continuously promote new trade schemes directly to store owners. 

This way, retailers can keep enjoying the ease of ordering on the phone, while CPG brands can sell more products at a faster pace.

And that’s just one of the many ways eRTM transforms downstream trade.

Bizom has strengthened the supply chains of over 500+ brands by leveraging our basket of eRTM solutions. 

Have you explored the scope of eRTM for your brand? If not, sit with our team and experience Bizom’s Retail Intelligence platform through a free demo, and discover how eRTM can enhance your distribution game. 

Mail us at marketing@mobisy.com to get in touch and explore the best retail tech tools to build your future of retail.

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