FMCG Foray Into Digital Commerce

FMCG FORAY INTO
DIGITAL COMMERCE SPACE

AN INDIAN PERSPECTIVE
Table of Contents
Introduction
Entry into Digital Commerce Space
Foray into Owned Online Channel - Key Elements
Alternative Evaluation for Go-To Market
Separate online channel
Utilizing existing retail network
Through wholesale distributor
Hybrid model
Key Cornerstone Elements
10
Order Processing
10
Inventory Planning
11
Last Mile Delivery
12
Demand Planning
13
Customer Service
14
Models Comparison
15
Model selection Framework
16
ITC Infotech Expertise
17
Key Business Strategy Design Principles
17
D2C Strategy - Cornerstone Elements
18
Conclusion
19
Introduction
FMCG industry in India has evolved gradually over
a period of time both in terms of new technology
adoption & efficient processes benchmarked to
international standards. The FMCG industry is
characterized by diversified, relatively low
involvement products with little differentiation.
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The major disadvantage of traditional channels is

that information flow across channels is highly
filtered and it is not possible to gauge the market
perception on a real time basis. Even the reports
from research companies are based on several
assumptions and are usually lagging in nature. To
counter these challenges, many FMCG companies
are trying to find a feasible direct-to-customer
option. In this paper we will try to find out what
these companies can do to come up the curve in
terms of people, process & technology.
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Customer Dynamics
Add to Wishlist
Demanding and Aware
Cost conscious
ZOOM VIEW
1990s
Brand Loyal
General Trade
Lack of time:
One stop shopping
with diversified range
Modern Trade
Not averse to trying new brands

Tech Savvy,
Convenience Oriented
Online
Extensive Distribution Network
Change in Org Structure:

Introduction of KAM
Customer Service Oriented Org

Culture
Nation wide Brands
New KPIs for Modern

Trade: Freshness Level, Line Fill Rate
Flexible Supply Chain
value for Money Products
Strategic Product Placement
2020s
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Due to such low value & high volume products,

traditionally winners are those who are able to
build national brands & extensive distribution to
service every corner. However, the rules of
engagement have now changed. Customer
expectations have increased manifold & loyalty
towards respective brands is at risk as the new age
consumer is not afraid to experiment new
products. Furthermore, customers from the
millennial generation are more tech savvy and are
leveraging technology at every level for increased
convenience. In this dynamic environment, it has
thus become imperative to know your consumer,

their preferences & act swiftly on their feedbacks,
be it related to quality of product or service.
Seamless Ordering Platform

and Intuitive UI
Adaptation by FMCG Companies
Fig: FMCG Industry Journey
! Customer Behavior has evolved and the FMCG

companies need to adapt to these changes
! The traditional core competency may no longer
be a differentiator and flexible organizations will
be in a position of advantage
FMCG FORAY INTO DIGITAL COMMERCE SPACE - AN INDIAN PERSPECTIVE
Entry into Digital Commerce Space

Changing customer demographics including
increase in youth population, nuclear families,
increase in disposable income, technology
advancement & evolving legal frameworks, and
conducive business environment have together
created an ecosystem for the evolution of digital
commerce. Though still at its nascent stage, this
channel is growing exponentially with a promising
future.
Online Sales channel is a major disruption as it
decouples the ordering and fulfillment processes.
For the customer, ordering has become
independent of product availability at a particular
store at any point of time providing him better
flexibilities. Similarly, FMCG companies have got a
chance to understand actual customer demand
and try fulfillment through optimal channels. This
has opened up a lot of possibilities, which if
optimized, will lead to a win-win situation for both
customers and the companies. The technology
and operations disruptions that may follow will
bring about a change in the way everyone looks
at convenience and fulfillment.
There are two strategic choices for an FMCG
company foraying into online retail, viz.:
! Through third party e-commerce portal

! Through ones own website
Proceeding with the first option involves
partnering with e-commerce retailers like
Amazon.com, Flipkart, Snapdeal, BigBasket.com,
LocalBanya.com etc. These portals can provide the
technological expertise required for entering into
digital commerce space. The other advantage of
going with these existing portals is the leverage
they offer with their existing customer reach.
Diversified product range listing from different
brands in the same portal also provides an
opportunity to the company to cross sell and up
sell. However, this approach shares the
disadvantage of limited control of the company
over pricing, promotion, stock visibility, customer
insights & analytics.
company complete control over product pricing,

promotions, stock visibility etc. It also gives the
company direct access to data around consumer
behavior and sales pattern which can be used for
taking different business decisions around
targeted promotions, promo effectiveness
evaluation, new product introduction etc. The
advent of big data analysis has given the
companies the power to analyze ample customer
data and develop insights which equips them
better in catering to changing consumer
demands. This option also provides control over
quality and delivery times. However, such an
approach would require an additional set-up
which will involve capital, time and resource.
The current share of online sales in total FMCG
sales in India stands at 0.3% which is expected to
grow to 5% by 2020, an exponential 50 times. In
absolute terms, this translates to Rs $5 billion
worth of online sales.
Advantages of each approach
Selling through e-commerce portal
Selling through your own website
Faster Go-to Market due to existing

technology portal
Complete customer analytics and insight
Leverage of existing customers
Better control on deliveries and better

Customer Experience due to Company
operated Last Mile Delivery
Diversified product range including products

from all brands and companies
Better control over quality and pricing
Last Mile Distribution taken care off by

e-commerce company
Value add services like dedicated promotions,

focused discounts, exclusive product launch
platform, voice of customer etc.
Projecting growth of online user population, the

report revealed that the country would have over
650 million Internet users by 2020, more than
double of 300 million users in 2014.
Source: Study by Google and Bain & Company
! Given the external changes in customer

demography, evolving legal framework and
advancement in technology, entering into
digital commerce is inevitable
! FMCG companies have a choice of either
investing in creating their own digital
commerce channel or tying up with third party
e-commerce companies. Each choice has its
own pros and cons
! The author believes that given the trend and
potential, it is advisable for FMCG companies to
invest in creating their own channel
Going ahead with the other option of creating

ones own website involves building a robust
technology platform for order placement and
tracking as well as creating an efficient last mile
distribution network. The approach gives the
Foray into Owned Online Channel Key Elements

For an FMCG company to move into owned e-commerce
space, it would have to build a robust technology strategy
and an aligned agile distribution network. It will also require
them to interact directly with customers at a B2C level. The
dynamics of such transactionsare much different from those
of the traditional B2B interactions. High Customer Service
Orientation will gain utmost importance. Low Pricing may
now not be as big a factor. The ability to provide value
added services may become the driver for growth. All these
will require a cultural shift within the organization.
Suppliers
Robust and
Scalable Platform
with Intuitive UI
The key challenges therefore would lie in the areas of

creating a highly intuitive and scalable technology platform,
inculcating a customer oriented culture within the
organization and developing an agile and highly efficient
last mile distribution network to cater to fragmented but
demanding users.
Customer Service
Oriented Org Culture
Manufacturer
Warehouse
Distributor
Retailer
End Consumer
Through Wholesale Distributors
Agile and Efficient

Last Mile Delivery
This arrangement allows the company to skip one echelon (retailers) in the distribution network and
service the online customers directly through its distributors. Such a scenario puts the onus of order
capturing, order processing and order fulfillment on the distributor. Such a channel will leverage the
companys existing distribution network but will bifurcate online and offline channels at the distributor
level, thus giving both channels some autonomy in terms of control and channel performance metrics
establishment. The distributor can use its existing storage space and operational processes to handle the
delivery of the orders with much ease. The key challenges with this model would be to increase the
operational efficiency of the distributor warehouses to maintain a high OTIF for online orders and to bring
about a cultural change within the distributors organization and make it more customer-centric.
Fig: Key elements of Online Channel
Alternative Evaluation for Go-To Market

Suppliers
Manufacturer
Warehouse
Distributor
Retailer
End Consumer
An FMCG company may decide to enter the online channel through several possible means. The decision
on approach will be guided by the existing strengths of the company and the desired To-Be state.
In our view, there can be four different courses that can be taken while utilizing distribution strength from
traditional channels and at the same time maintaining service requirement and customer focus that is
required in an e-commerce business. The four distribution models proposed are:
Separate Online Channel

The company establishes a separate channel for catering to online sales. Such a strategy would require
huge initial investment in setting up warehouses and distribution network. However, this will provide the
company a single-minded focus on the e-commerce business. This will also help the company decouple
their offline and online sales as the service level requirements and technology advancement for both are
different.
Hybrid Model
The company utilizes both whole sale distributors and retailers for online order fulfillment. This model
gives the customer a choice of delivery mode. The customer can either opt for home delivery or choose a
retail store for pickup. The delivery or choose a retail store for pickup. The order processing will happen at
distributor level. In case of home delivery, the distributor will send the order across to the customer and in
case of a retail pickup, distributor will service the order till retailer point. This model addresses the
concerns of non-availability in case of major retailer model and longer delivery times in case of the
distributor model.
Option 2
Suppliers
Suppliers
Manufacturer
Warehouse
Distributor
Retailer
Warehouse
End Consumer
Own Network

FMCG companies can leverage their existing well-knit distribution system of warehouses, distributors and
retailers to fulfill orders received through e-commerce route. Such an arrangement will not induce high
additional capital cost. The collation of both online and offline channels will require well defined
processes, technology up gradation at key nodes of the distribution network and accountability structure,
but will have the benefit of minimal investment and set-up time. Using a base of selected retailers (one
major retailer in each locality) to take care of online orders for that area is a better approach in this case.
Manufacturer
Distributor
Retailer
End Consumer
Option 1
! FMCG entry to the digital commerce space can happen through multiple routes.
! While some options will leverage the existing network and capability, others may offer a completely
separate channel for more focus and evolved processing needs of digital commerce space.
! Companies will also have an option to pick and choose the best from both worlds
Key Cornerstone Elements

All the above stated models have their positives and negatives and to evaluate these approaches, the
following key cornerstone elements are critical to execute any approach:
Model Used
Key Activities
! Pin code based mapping for customers to

Dedicated Online Warehouse, so that the
right order gets captured at the right
warehouse
! Staffing will need to be done as it will be a
new warehouse, inclusive of WH manager,
Store incharge, Pickers, etc.
! Online order processing capabilities to be

developed at the retailer end
! Training and development of retailers
employees for order picking and packaging
! dditional training of the staff for customerwise order processing
Hybrid Model
! Additional training of the dealers staff for

customer-wise order processing
! Order Processing
! Inventory Planning
! Last Mile Delivery
! Demand Planning
! Customer Service
From a go-to market perspective, these elements will present unique challenges and opportunities for
each of the four options. It will be important for a company to evaluate its existing strengths and
infrastructure around these focus-areas before taking a call on which approach they would like to follow.
Order Processing
Order processing is the cycle from receiving the
orders to final delivery to the customer. The
main activities involved in this are order
capturing, picking, packing and delivery of
packed items to shipping carrier. When an FMCG
is going for online channel/direct to customer
channel for selling its goods, it needs to change
its order processing practice. It is a shift from
B2B from B2C. It will need a customer interface
for placing an order online and a backend
mechanism to collate process and fulfill these
orders. It will also have to provide information to
the customer enabling him to trace his order.
This will require the company to have an
integration of Item and Price Masters, Inventory
for in stock positions and replenishments,
delivery details etc. throughout the supply chain.
An additional training will be needed to bring
customer orientation within employees. Training
will also be needed for warehouse operators and
delivery personnel to process online orders.
There will be some differences in order
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processing based on which distribution channel

method is being adopted by the company.
Efficient Order Processing mechanismshould
include the following:
! Consolidated order management that lowers

costs in turn
! Advanced order commitment and tracking that
can in turn help improve customer service
! Automation of workflows through order
management processes - Order visibility (order
tracking)
! Consolidation of order data to support enterprise
forecasting and replenishment initiatives
! Significant increase in the visibility of demand
and future requirements
! Elimination of repetitive tasks and physical paper
handling
! Reduced lead times, reduced administrative
workloads and the use of multiple databases
Inventory planning
Online ordering provides flexibility for fulfillment
through different nodes. Hence, what inventory
to keep where and at what level becomes an
important decision point. Inventory planning will
thus be a key factor to have an efficient online
presence. With high customer expectations and
competitive digital commerce space, the
criticality of fulfilling orders in a very short lead
time necessitates keeping a high inventory level.
Such an approach in turn impacts the freshness
level of stock and adds to the overall cost. So
deciding an optimum inventory level is very
important for the success of FMCG venturing
into e-commerce. The inventory policy would
have to be replenishment based and agile. The
different models require inventory norms
modification at different levels.
The expected benefit of proper inventory planning

for online sales are:
! Complete control of inventory

! Complete information about the value of the
inventory
! Complete visibility on quantities on hand,
quantities committed and quantities sold
! Response time to demand changes reduced
! Knowledge of the exact size of merchandizing
inventory
! Frequent analysis of purchases, sales and
inventory records
! Removal of unnecessary use of warehouse space
used by unrequiredpart of inventory
! Reduction in excess merchandize stock
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Some salient features of inventory planning which would be peculiar to the type of channel used are:
Model Used
Key Activities
! Separate inventory norms for online

customers as there are dedicated
warehouses for online channel
! The inventory norms at the dealer level who

is servicing to the retailer would have to be
revised keeping in mind the online sales
through that retailer
! The inventory norms at the distributor

would have to be revised, keeping in mind
both the online and offline sales
Hybrid Model
! The inventory norms at the distributor

would have to be revised, keeping in mind
both the online and offline sales
Demand Planning
Demand planning is a multi-step operational supply chain management (SCM) process used to create
reliable forecasts. Effective demand planning can guide users to improve the accuracy of revenue
forecasts, align inventory levels with crestsand troughs in demand, and enhance profitability for a given
channel or product. A big change that online sales will bring into the demand planning process is the
direct access to true customer demand. With the direct availability of demand data, sales data, customer
demographics and click data, companies will now have the potential to analyze sales trends, customer
analytics, new product introduction analytics, introduce online sampling, promo design analytics, promo
effectiveness monitoring etc. The online sales medium provides the manufacturer with plethora of
customer data. The company can know who is ordering what, in what order mix and at what time. All
these help in a more robust and accurate demand planning. At the same time, with so much data to
consider, demand planning becomes a very tedious exercise. The model has to be more dynamic/agile to
utilize the benefit of the customer analytics.
Model Used
Last Mile Delivery

Last mile delivery (LMD) is the final touch point between the company and the customer. For an FMCG
company, this is a new area of operation. Coupled with the high customer service expectation of the
modern online customer; LMD is a critical success factor for online business. With current e-commerce
companies already offering free home delivery, COD and one day delivery guarantee, it becomes
imperative for an FMCG entrant to abide by these universally accepted norms. LMD requiresheavy training
of delivery personals to perform timely deliveries. It needs technology incorporated for the tracking of the
order and getting the delivery proof.
Model Used
12
Key Activities
! With a dedicated network for distribution,

the demand planning will only be for online
sales
! The model will have to be able to fully utilize
the benefit of the customer analytics
! Integrated demand planning will need to be

done for both offline and online sales
through the major retailer
! Centralized demand planning will have to

change to incorporate the additional online
demand
Hybrid Model
! Centralized demand planning will have to

change to incorporate the additional online
demand
Key Activities
! Partnering with a 3PL entity for LMD activities

! Staffing for managing 3PL partners
! Handling customer returns
! Hiring & training of delivery personnel of retailer

! Investment for delivery assets
! Hiring & training of delivery personnel of retailer

! Proficiency in order wise picking & packing
Hybrid Model
! Communication between retailer and

dealers on order status and cash collection
13
Models Comparison
Customer Service
Customer service is an important aspect in digital commerce space on account of highly aware customers
and increasing competition. With customers willing to spend more money in lieu of better convenience, it
is imperative that customer service is taken great care of. Herein, having ones own last mile delivery will
provide better customer service in terms of adherence and control over quality and timelines compared to
options like delivery through retailer and distributors. Self-owned LMD can also be a channel for hearing
the voice of customer which can feed back into the system.
Model Used
Hybrid Model
Separate
Online Channel
Dedicated
resources
Key Activities
! Dedicated Customer Care to handle

complaints and queries
! SOP creation for each type of customer request
! Org structure creation and SLA definition for
Customer Service
Leverage existing
Customer
Oriented Mindset
Special secondary
packing needs
Order Processing
Through
Wholesale
Distributors
Hybrid Model
Existing
infrastructure
available for order
processing
Existing
infrastructure
available for order
processing
Picking and
packing order
wise will require
staff training
SOP for
demarcation of
online and offline
order processing
is required
! KPIs to set accountability of retailers wrt

delivery timeline adherence and its monitoring
! Org structure re-alignment to oversee
retailers performance and take action
! KPIs to set accountability of retailers wrt
delivery timeline adherence and its monitoring
retailers performance
Utilizing existing
retail network
Easier to plan
Additional safety
stock will be
required to be
kept separately
Keeping a real
time track of
retailer inventory
will be difficult
Inventory planning
! SOP creation for role, title and accountability

between retailer and dealer
retailers performance and take action
The key cornerstone elements will provide a reference point for FMCG companies to
evaluate which strategy to use for getting into the digital commerce market
Last mile delivery
Pre-existing
inventory norms
available
Pre-existing
inventory norms
available
Overall safety stock

required will be less
due to aggregation
of offline and
online demand
Overall safety stock

required will be less
due to aggregation
of offline and
online demand
Special training
need to employ
customer oriented
mindset in staff
Special training
need to employ
customer oriented
mindset in staff
More flexibility to
customer
Better
aggregation is
possible
Quicker lead
times to service
order
Better
aggregation is
possible
Voice of customer
can be channeled
through delivery
personnel
Better equipped
personnel to do
customer facing
transactions
Pre-owned
delivery assets
can be leveraged
Handling reverse
logistics will be a
challenge
Handling reverse
logistics will be a
challenge
Demand Planning
Advantage
14
Specific and
evolved model
can be used for
online channel
Demand Planning
data needed at
retailer level for
online sales
Existing demand
planning
framework can be
used
Existing demand
planning
framework can be
used
Challenge
15
Models Comparison (..Cont)
Higher time to
serve order
Direct Data
available for
analysis
Customer Analytics
Voice of customer
may not reach the
organization
Lesser control
over data
reporting by
retailer
Higher time to
serve order
Voice of customer
may not reach the
organization
Direct Data
available for
analysis
Hybrid Model
Voice of customer
may not reach the
organization
Direct Data
available for
analysis
Others
Advantage
Separate Infra
Setup
Enhance Customer
Convenience
Multiple Payment
Options
Loyalty Benefits
*
24 & 7 Order
Availability
Increase Sales
Doorstep
Delivery
New Channel
Introduction
Low channel
conflict
Initiatives
Channel conflicts
may happen with
existing channels
Partial channel
conflicts
Integration with
ERP Systems
Reliable & Scalable
Ecommerce Platform
Business Driven
User Interface Design
Order Processing
Strategy
Fulfilment Strategy
Catalogue Creation
Loyalty Program
Last Mile Distribution
Business Analytics
POS Data
Customer Demographics
Promotion Schemes
Increased
Customer Base
Targeted marketing
communication
Freshness
Technology Driven
Additional leg of
data integration is
required
Separate Staffing
ITC Infotech can engage with FMCG organizations to develop Direct-to-Customer strategy and implement
it at strategic, tactical &operation level. The below mentioned framework can help the company achieve
the objective in a phased manner. Over the years, ITC Infotechhas built capabilities & domain expertise to
build an e-commerce organization around technology, process & people.
Objectives
Customer Service
Leverage existing
good terms of
retailer with its
customer
Through
Wholesale
Distributors
Value Proposition
Better degree of
control over
customer service
Utilizing existing
retail network
Enablers
Separate
Online Channel
ITC Infotech Expertise
Supply Chain Analytics

Inventory Data
Out of stock
Service Levels
Organization Driven
Ecommerce
channel Setup
Product Information
Assortment Planning
Sub Category/Category
Price & Discount
Fig: Strategy framework for Establishing Direct to Customer Channel for FMCG companies
Challenge
Model selection Framework
Key Business Strategy Design Principles:
Selection of the type of model/approach to go for is a

crucial decision for any FMCG. Although that decision
has to be taken by considering several parameters, two
key factors which can largely affect the decision of the
model are the FMCGs distribution penetration and the
amount of technology advancement.
! As a part of the strategy, the ITC Infotech team has identified the following key design principles to
establish Direct-to-Customer channel for FMCG companies:
Utilizing existing
retail network
Distribution Penetration
For a company with high distribution penetration and

well rooted network system but not very advanced in
terms of technology, utilizing existing retail network
for digital commerce should be the way to go. And for
a company just entering the Indian market and lacking
a well setup distribution network but with a strong
technology knowhow, should plan for a separate
online channel.
! Convenience shopping anywhere, anytime through e-commerce and m-commerce channels with
availability of commerce platforms
Hybrid Model
! High Consumer Service levels and robust fulfilment backbone assured delivery within prescribed
delivery windows; intra-day, next day etc. in line with needs of freshness and in line with market
competition
! Have efficient inventory management, delivery mechanisms
! Pricing algorithms for competitive pricing
Through Whole
sale Distributors
Separate
Online Channel
! Convenience around variety of payment options online payment; Cash on Delivery, mobile pay,
vouchers etc.
! Friendly returns policy
There is no 1 optimal model for entry into the digital

commerce space
The companies can choose the model basis their
current core-competencies and the desired TO-BE
state in these cornerstone elements
16
! Rich User Experience comprising ease of ordering, intuitive user interfaces, guided selling,
recommended products using auto suggestions, etc.
Technology Advancement
17
Branding & Messaging
User Experience
Adherence to branding
Easy to find what
guidelines and
communication as
defined by Corporate
communication team
customer needs
Makes it easy to get
Robust Platform
High uptime for
Delivers orders when
ordering transactions
promised
Integration with
anywhere on the site
Order delivery within a
internal ERP systems

and external systems
and payment gateways
Enables customer to
complete a transaction
quickly
Efficient Fulfilment
Correct order delivery
Ability to scale up to
large volumes
Well organised site
suitable time frame

(intra-day / next day
etc)
e-commerce orders to
link up to inventory
systems on real time
basis
including Information
Loads the page fast
Simple to use site
Customer Privacy
Protect information
about customer's web

shopping behaviour
Does not share personal
information with other

sites
Protect information
about customer's credit

card
Conclusion
In the time to come, polar positions will be taken by those FMCG companies who can crack the complex
Omni-channel fulfillment mechanism keeping top KPIs as service levels and OTIF in black. To achieve this
objective, Direct-to-Customer strategy will pay a pivotal role and companies have to weigh, which option
to adopt basis their distribution maturity or the agility with which they can train their people, adapt to
new process and invest in new technologies. D2C is an option today but it is only a matter of time for it
to become a necessity.
Convenient payment
modes
Fig: Capability Pillars
D2C Strategy - Cornerstone Elements

D2C Business Model Design
! Product Strategy Define Product Assortment
for selling on D2C Model with associated
pricing strategy
! Online Ordering Platforms - Design Platforms
for ordering online through various digital
commerce platforms (E-Commerce followed by
M-Commerce)
! Order Fulfilment Strategy Design the Supply
Chain strategy and processes to service online
orders and manage direct delivery to
consumers
! Consumer Account Management Strategy
Design Consumer Account Registration and
associated consumer attributes for managing
consumer data, purchase history, consumer
preferences etc.
! Direct Marketing, Offers, Product
Recommendations & Campaigns based on
Consumer Insights
! Invoicing & Payment Models Design invoicing
and payment models to facilitate consumer
payments and cash collection
! Consumer Service and call centres for
consumer query handling and complain
management
! Loyalty Schemes and Redemption Models
Design loyalty models for incentivizing
consumers to use the D2C channel
Organization Model Design to support

the D2C Operations
! Organization model to be put in place to
support D2C operations

! Interim models that can support phase wise
deployment
Technology Strategy
! Core online platforms to be designed for
Ordering Online Shopping Basket and

Ordering Engine, Consumer Account
Management, Order Visibility & Tracking, Order
Confirmation, Invoicing and Payment, etc.
! Integration strategy comprising elements such as
#
Integration with payment gateways
#
Integration strategy with companys internal
systems for Supply Chain information in line

with Supply Chain Strategy and model design.
! Master Data Management Product
Information, Pricing Structure, Supply Chain

network information, etc.
! Identify system changes imposed on feeder
systems to support D2C Model, for instance

#
Existing systems of FMCG company to be
adapted to support Order Promise,

Inventory Allocations for D2C Orders,
Provide Order Status Visibility (Shipped/ Not
Shipped, Delivery Slots etc.)
About Authors
Abhinav Verma is Senior Associate Consultant at ITC Infotech, Business Consulting Group, specializing in
CPG domain. He holds a Bachelors degree in Management Science with an M.B.A in Marketing & Finance
with 11 years of experience in Territorial business planning & Logistics, Customer Analytics, ROI
management, Profit centre management, Risk Management, Vendor development & Procurement, Key
Account management and Quality management in CPG sectors. He has built comprehensive Financial
Benchmarking models, Redesigned the Demand estimation & Promotional Planning process, set up SOPs for
Centralized Order Processing system & SKU rationalization and has created Process Blue print for
Distributor Management System (DMS) for CPG Sector companies.
Anurag Tripathi is a Supply Chain professional and enthusiast with experience in CPG, Retail,
Manufacturing and Hi-Tech industry. He has worked in areas around Supply Chain Integrated Planning,
Supply Chain Transformation, Fill Rate Improvement, Order Management and Supply Chain Performance
Management. Anurag is currently employed as an Associate Consultant in Supply Chain Practise within
the Business Consulting Group at ITC Infotech.
Anurag Tewari is an Associate Consultant in Supply Chain Practice within the Business Consulting Group
at ITC Infotech. He holds a management degree in General management with focus on supply chain
management and has 3 years of professional experience spanning in the fields of project management,
Warehouse design and operational excellence and distribution planning.
ITC Infotech has the capability to help FMCG companies at a strategic, tactical and operational level in
entering into the Digital commerce space
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About ITC Infotech

ITC Infotech, a fully owned subsidiary of USD 7 billion ITC Ltd, provides IT services and solutions to leading global
customers. The company has carved a niche for itself by addressing customer challenges through innovative It
solutions.
ITC Infotech is focused on servicing the BFSI (Banking, Financial Services & Insurance), CPG & R (Consumer Packaged
Goods & Retail), Life Sciences, Manufacturing & Engineering Services, THT (Travel, Hospitality and Transportation) and
Media & Entertainment industries.
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FMCG Foray Into Digital Commerce

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FMCG Foray Into Digital Commerce

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FMCG FORAY INTO

DIGITAL COMMERCE SPACE

Entry into Digital Commerce Space

Foray into Owned Online Channel - Key Elements

Alternative Evaluation for Go-To Market

Separate online channel

Utilizing existing retail network

Through wholesale distributor

Key Cornerstone Elements

Last Mile Delivery

Model selection Framework

ITC Infotech Expertise

Key Business Strategy Design Principles

D2C Strategy - Cornerstone Elements

The major disadvantage of traditional channels is

Demanding and Aware

Not averse to trying new brands

Extensive Distribution Network

Change in Org Structure:

Customer Service Oriented Org

Nation wide Brands

New KPIs for Modern

Flexible Supply Chain

value for Money Products

Strategic Product Placement

Due to such low value & high volume products,

thus become imperative to know your consumer,

Seamless Ordering Platform

Fig: FMCG Industry Journey

! Customer Behavior has evolved and the FMCG