Why is the current SupplyChain management set up in India not able to support the small start up brands in setting up PAN India??
We did a recent study through our Call Center executives in setting up PAN India for 100’s of small start up brands by talking to 1000’s of distributors/super stockists.
Our supply chain and logistics system is so weak that we are not able to distribute to the growing demands of food products from consumers and the increase in the supply from new start ups. Here are the few key observations.
1, Super Stockists and Distributors do not want to adopt to new technologies that are going to ease their work, with a fear that manufacturers will get to know who their retailers/consumers are. But actually, the manufacturers feel that this is a wrong fear.
2, SS/Distributors are charging commission of margin beyond imagination from manufacturers. I saw a C&F agent asking for 70% margin on MRP from a manufacturer for a state level distribution of a chocolate product and committing a monthly sale of 15 lakhs of rupees and also 100% advance payment. But their delivery time to retailer will take 3 month’s time because of more levels in the SupplyChain network. They don’t have any mechanism to track stocks at the subsequent levels of distribution. They are also asking for return policy. The manufacturer decided never to adopt such traditional risky way of distributing their products. Check betking app
The solution is to go B2C for distribution of food products directly to consumers.
These new small start up brands dont have to depend on top American companies like Amazon or Wallmart to come and set up B2C for their sales operations in India.
SupplyChainz is empowering women in each pin code in India to become Delivery Channel partners and implementing B2C through their technology platform SalzPoint.
If any new small start up food product manufacturer wants to sell their products directly to consumers in an accelerated way and still get the same profit margin that they get from traditional way of distribution model, please send enquiries by logging into www.salzpoint.com
– By Sathyanarayanan Raman