A common dilemma faced by FMCG manufacturers is deciding between a Complete Distribution Model and a Sales Force Management Model. Both approaches have distinct operational structures, pricing setups, and liability limits.
The Complete Distribution Model shifts the entire financial and logistical burden to the distribution partner. The partner buys stock, manages warehousing hubs, dispatches delivery vans, and bears the outstanding credit risk. This model is perfect for manufacturers wanting instant market access with zero logistics overhead.
On the other hand, the Sales Force Management Model is designed for manufacturers who already have active wholesale distributors but lack a professional sales hierarchy. Here, the partner recruits, trains, and manages Regional and Territory Sales Officers to book orders and check shelf visibility, while the manufacturer maintains direct distributor ledgers.
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