Top Mistakes New FMCG Distributors Must Avoid

Many new distributors enter the FMCG market with enthusiasm but face losses because they make avoidable mistakes. Understanding these mistakes can save time, money, and stress.

One major mistake is trying to take too many companies at once. This divides investment and leads to low stock availability. Retailers prefer a consistent supply, so managing too many brands becomes difficult for a new distributor.

Another mistake is giving too much credit. Credit is common in the market, but uncontrolled credit blocks your cash flow. When your cash flow slows down, purchasing new stock becomes difficult, and your business collapses from the inside.

New distributors also fail to monitor stock levels properly. They may overstock slow-moving items or understock fast-moving items. Both affect profit. Maintaining proper inventory is one of the most important skills in distribution.

Not monitoring salesmen is another common mistake. A distributor must track visits, collections, and daily performance. Without monitoring, productivity drops, and the distributor faces a loss in sales and cash.

Poor route planning also creates inefficiency. When routes are not organised, fuel costs increase, and shop visits reduce.

Avoiding these mistakes helps you build a stable and profitable distribution business. With discipline, proper planning, and consistent monitoring, even a small distributor can become strong in the market.

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