Channelier

Ensuring Covid-Proof Sales and Distribution

Business schools across the world often teach professionals that disruption is an integral part of the game. Professionals are taught, not just to accept disruption but to embrace it in order to revolutionise the way they conduct business. However, the crucial distinction is that this holds true for creative disruptions (AI, automation, big data, you name it). When it comes to once-in-a-century black swan events, as a society we seem to have few or no answers. For several decades, apart from some primitive technological tools to track primary (from the FMCG company to their Distributors), and in some cases, secondary sales (sales from the Distributor to the Retailers), very little changed in this domain. Suddenly, FMCG companies find themselves staring at a major disruption in their distribution model. Arguably, the biggest challenge is to be able get adequate laborers to come and work in the factories. Further down in the value chain, FMCG companies are working with the transporters to change the practice of two drivers per truck to one driver per truck, in an attempt to halt the spread of the deadly virus. Overall, as a result of this crisis, there could be some shifts in for the organised players: we are already seeing some shift in “do-it-yourself" kind of products, a difference in the way they market their products and communicate with their audience. It is very likely that there will also be simultaneous and momentous changes in the sales and distribution protocols for these companies as well.