FMCG distribution networks are the routes that FMCG goods take from suppliers to customers. They are the conduits through which goods, information, and funds flow through the system. Although some FMCG businesses tend to deal directly with customers, the majority of companies rely on a distribution network to bring their products to their customers.
Setting up a distribution channel necessitates extensive preparation, successful thought processes, commitment, and expenditure. The margin on distribution networks and the expense of operating them account for a large portion of total marketing costs. And from a public perspective, creating a distribution platform provides new work prospects for labourers and helps to make FMCG goods accessible to people from all walks of life.
A good distribution network gives manufacturing companies an advantage over their rivals from a strategic standpoint. As a consequence, channel management and delivery are vital components of a company’s market strategy.