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What New Tech In Distribution Does FMCG In India Need?

By Kriti Pahuja 28th June 2019

The FMCG (Fast Moving Consumer Goods) segment in India comprises the fourth largest proportion of the Indian economy. With about 11% sectoral growth according to a 2018 IBEF Report, the segment is poised to grow with projections of 27% CAGR in 2019. Another interesting fact in the report states that the small/regional players will be the primary growth drivers for the sector. 

According to Neilsen India’s report including retail sales data in FMCG, the top 50 firms contributed to 60% of the total revenue in 2018, with a growth of 10.6%; the smaller companies grew by a relatively higher 18.5%.

With the growth in the segment and even better potential for the forthcoming years, will it be logical for an FMCG Company to not automate distribution channels, given an entire growth pie is up for grabs? 

The answer is, ABSOLUTELY NOT! 

So what new tech in distribution does FMCG in India need?

FMCG spans across goods of daily routine, ranging from food and beverages to stationery and personal care. They have a higher and faster turnaround time which calls for an effective process chain for efficient and timely replenishment. With a constant advent of new products in technology, you have to be on the toes to figure the best tech that suits the business. 

Outbound Logistics in FMCG: 

Outbound Logistics in FMCG constitute the movement and channels to move finished goods from the business to the buyer and steps involved therein.  

The movement of goods between manufacturing units to agencies further has to be closely monitored from time to time, since inefficiency in the regard can cause multi-level hindrances in the business operations and concurrent profitability. 

What are the challenges herein?

  • Movement of goods and Tracking: from manufacturing to distribution and POS. 
  • Record Keeping and Management: Monitoring quantities in movement and pipeline 
  • Timeliness in Delivery of Perishable Goods: for perishable goods to reach the POS quickly
  • Hierarchy and Team Management: For smooth conduct in movement, answerability and accountability

Combating The Challenges In FMCG Deliveries

Real-time Tracking and a Birdseye Dashboard:

With a major requisite to ensure swift dispatch and delivery of FMCGs, it becomes pivotal for organisations to track transporters in real-time. Tracking task-completion rate of the team on daily-weekly-monthly basis capacitates organisations to analyse overall productivity of the channel and resource. A Birdseye view for the manager on his dashboard makes it so much easier to track the exact location of the delivery team in real time. 

Tookan, Jungleworks’ Delivery Management System toolkit, also has an offline sync feature wherein if the transporter transits into a location with no internet connectivity, his location is stored and automatically syncs once internet connectivity is restored. 

Powerful Analytics:

With diverse insights about the market available, powerful analytics about their current business standing is every organisation’s most valued tool in making relative business decisions. A delivery and field force management software with powerful analytics available on the manager dashboard gives accurate, informed and timely insights to enable the organisations to make more realistic and intelligent business decisions that serve key for a smart future strategy. It thus is essential that the field force management toolkit offers readily available and powerful analytics. 

Tech that masters Route Optimisation:

FMCG houses a zillion range of perishable goods, for which route optimisation becomes absolutely essential. Soiling is one of the most identified issue in the FMCG Market for perishable goods, where route optimisation depends on paper trails for multiple pick-ups and deliveries. Digital Route optimisation in Tookan solves this issue by taking the field-force from a pick-up location to a delivery location through the shortest and most optimised route to reduce losses through soiling significantly. 

Solutions like Tookan deliver to multiple use cases like single pick-up : multiple deliveries, multiple pick-ups : single delivery and single pick-up : single delivery.

Access Control Lists:

In case of any misfortune in the movement of goods, accountability and answerability become key to support decision making. Access Control Lists enable managers to define teams and roles for a particular job, along with a set of permissions that can be masterfully crafted for a smooth and efficient business conduct.  

What is ACL?
Access Control Lists on Tookan have been a rage with Delivery Management Administrators worldwide. ACL authorises administrators to tweak permissions for agents, managers and merchants and helps define roles with permissions as required. 

From authorising managers to add / delete a task or agent to the permission to accept or decline a task, ACL in Tookan is an added toolkit to manage all inches of the delivery process. 

Crystallised Delivery Management:
When the business and the company grows, with them grow the rate and volume of deliveries. Most tier 1 FMCG companies work on planned schedules and delivery dispatches to optimise business operations. A tech and user friendly delivery management system therefore works best to  crystallise the process.
For instance, if a particular product- say toothpaste, is dispatched every Monday, with Tookan, Administrators can create a recurring task about the same. Thereafter, every Monday, the task will automatically create until removed otherwise. 

Dual-purpose Tracking:

The FMCG Market business operations constitute multiple levels. From the manufacturing unit to distribution hubs and further warehouses that lead to merchants; then finally does the product reach the Point of Sale. With so many levels involved, it does become relatively difficult to track product movement at every level. 

The journey from Manufacturers to the Merchants is still traceable, but there stands no visibility to products then reaching a POS; because of which if there’s a drop in demand, it becomes almost impossible to trace the inflow of the occurrence. 

The industry thus needs a centralised system that permits a dual-purpose tracking. Tookan does just that. It not only enables the business stakeholders to track the progress from Manufacturer to Merchant, but with an additional Merchant Dashboard, they can have a complete visibility of their product journey. Merchants too can manage their deliveries through the Tookan Merchant Dashboard further: thus suitably sufficing for a Dual-purpose Tracking System.

With so many exclusive features at hand, try Tookan by Jungleworks as the complete toolkit to combat business challenges for the FMCG market. 

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