Exhibit 31.1 Illustration of FMCG distribution network.
To state the obvious, sales generate money, which
serves as the lifeblood that sustains a business. This is precisely why companies continually
strive to enhance their sales.
As sales is the outcome of supply and demand, it should be tracked and
analysed through metrics that relate to supply and demand. These metrics are covered in
this chapter in the context of the analysis of sales and distribution.
The primary focus of this chapter revolves around five key managerial objectives —
building distribution network, targeting the right channels and chains, optimizing assortment,
securing retailer support, and managing stocks in trade.
You will be introduced to a wide range of metrics that can be employed to measure
supply, such as stock and distribution, as well as metrics to assess demand, share in handlers,
rate of sales, cash rate of sale and rate of gross profits.
Furthermore, the chapter explores various techniques for evaluating product
assortment, conducting portfolio analysis, and performing fragmentation analysis, all of which
contribute to effectively managing the supply side of the business.
