What Is FMCG Products?

  FMCG products (Fast-moving consumer goods) are nondurable products that sell quickly at relatively low costs. FMCGs have low profit margins and high-volume sales. Examples of FMCGs include milk, gum, fruit and vegetables, toilet paper, soda, beer, and over-the-counter drugs like aspirin.

How FMCG products are transported?

Often, one cargo vehicle is to carry a variety of FMCG items that significantly differ in characteristics. Therefore, the transportation of such cargo requires a specially adapted vehicle suitable for the delivery of various products ranging from cleaning supplies like bleaches to baby care products.

Types Of Distribution Channel

  Types of distribution channels There are three types of distribution channels: direct, indirect and hybrid.

Direct: With the direct channel, the company sells directly to the customer. For example, a brewery that brews its own beer and sells it to customers at its own brick-and-mortar location employs a direct channel of distribution. The seller delivers the product or service directly to customers. The vendor might also maintain its own sales force or sell its products or services through an e-commerce The direct channel approach requires vendors to take on the expense of hiring and training a sales team or building and hosting an e-commerce operation.
Indirect: Indirect channels use multiple distribution partners or intermediaries to distribute goods and services from the seller to customers. Indirect channels can be configured in the following ways: With the single-tier distribution model, vendors develop direct relationships with channel partners that sell to the customer. In the two-tier distribution model, the vendor sells to distributors that provide products to channel partners, which, in turn, package products for the end customer. Two-tier distribution helps smaller channel partners that would have difficulty establishing direct sales relationships with large vendors.
Hybrid: Hybrid channels combine the characteristics of direct and indirect channels. The seller uses both direct and indirect methods. For example, a manufacturer might sell an item on its e-commerce website, but then an intermediary delivers the physical product to the customer. The customer still has a direct interaction with the seller, but an intermediary is also involved.