Fast-moving consumer goods (FMCG) majors such as Godrej Consumer, Britannia and ITC are rolling out stock-ready vans to streamline stock replenishment in rural markets, significantly reducing turnaround times for retailers.
Traditionally, FMCG distribution in rural areas follows a two-step process — sales representatives would visit retailers to collect orders and deliveries would follow either later in the day or the next. However, the new model transforms this approach by enabling real-time order fulfillment.
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Under this initiative, companies partner with stock distribution vendors who coordinate between stockists and van drivers. The stockist loads company products into the van, and the driver, accompanied by a vendor, travels to 4-5 villages daily. The key advantage is that retailers receive goods immediately upon placing an order, eliminating stockouts and reducing the replenishment time from 1-2 days to just a few hours.
“The primary objective is to ensure that replenishment happens in less than a day, preventing revenue losses due to stockouts,” said a person familiar with the development. Another industry insider noted that this practice has been adopted by several FMCG companies in the past few months.
Beyond merely transporting products, van drivers are expected to have a broader role. “They are not just drivers; they need to be well-versed with the company’s product portfolio and, at times, actively market them,” the first source added.
The initiative is gaining momentum at a time when the demand in rural markets is seen to be improving. As a result, companies are now actively expanding their footprint in these regions.
While Britannia and Godrej Consumer did not respond to FE’s queries, sources confirmed that Godrej Consumer has launched Project Vistaar 2.0 to boost rural sales through vans.
ITC, one of the pioneers of the van-led distribution model, has been leveraging this approach to enhance its rural reach. “By deploying cost-effective and agile logistics solutions such as stock-ready mobile vans, we are ensuring seamless FMCG product delivery to the remotest corners of India,” said B Sumant, executive director at ITC.
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ITC further optimises its distribution network by appointing stockists to manage these vans,
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