Enabled 30% broader reach into deep rural areas through Direct to Kirana solutions for an FMCG leader
The Fast-Moving Consumer Goods (FMCG) industry in India plays a crucial role in the nation’s economy, marked by high competition and swift product turnover. According to IBEF, FMCG sales in India witnessed revenue growth of 7-9% in FY 2022-23. Despite this growth, reaching the deep rural and semi-urban (rurban) markets, which hold significant potential, remains a formidable challenge due to infrastructure constraints and logistical complexities.
Our customer, a leading Indian multinational consumer goods company, offers a wide range of everyday products including toiletries, soaps, detergents, hair colorants, and more. These products reach consumers through a vast network of retail outlets. The company aimed to enhance its distribution network and establish direct reach in deep rural areas. To achieve this goal, several critical areas needed addressing: quick turnaround time for deploying containerized vehicles across territories, complete visibility of vehicles with track and trace functionality, strict adherence to KPIs, and support for the sales team to reach multiple Kirana stores with loading and unloading.
Unlocked accessibility with technology-enabled Direct to Kirana Solutions
As part of contract logistics, we designed a tailored solution aimed at transforming our customer’s distribution strategy. Our “Direct to Kirana (D2K)” operations were launched across three key states—Uttar Pradesh, Rajasthan, and Uttarakhand, where we deployed over 200 vehicles to cater to both rurban and deep rural areas with populations of less than 5,000.
Direct to Kirana Solutions:
Van-Based Sales Model:
We introduced a van-based sales model developed in collaboration with our drivers and our customer’s van sales representatives. This collaborative effort ensured efficient navigation and access to rural Kirana stores.On-Time Deployment of Fully Containerized Vehicles:
We prioritised the safety and security of goods during transit by timely deploying fully containerized vehicles equipped with advanced lock and key systems. This ensured that products arrived intact and undamaged.Facilitated Reach into Deep Rural Areas:
We focused on penetrating deep rural areas where traditional distributor penetration is limited. By establishing direct access, we maximised sales opportunities and strengthened market presence.Cash Collection and Reverse Logistics:
In addition to sales operations, we facilitate seamless cash collection from Kirana stores. We also adeptly manage reverse logistics processes, ensuring swift and organized product returns.
Technology-enabled Operations:
Empowering our customers with enhanced control and visibility, our technology-enabled operations included:- Deployment of GPS-enabled vehicles with real-time tracking for end-to-end visibility
- Implementation of geo-fenced reporting locations to ensure timely reporting of vehicles
- Utilisation of intelligent trip analytics to optimize operations and boost efficiency
Operations Excellence:
Driven by our commitment to operational excellence, we implemented the following initiatives:- We implemented driver incentivization to boost and facilitate sales across multiple locations
- We conducted awareness training sessions for drivers to enhance sales effectiveness
- We introduced driver-assisted loading and unloading to streamline operations
Igniting Success with Direct to Kirana solutions for FMCG Supply Chain
- 100% on-time Placement of Vehicles
- 30% increase in market reach compared to the previous distribution model
As part of contract logistics, our tailored Direct to Kirana (D2K) solution not only enhanced the market reach of our customer’s products into previously inaccessible markets but also ensured rapid and reliable service, ultimately driving sales growth and strengthening market presence.
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