FMCG supply chain gridlock: Demand declines and inventory adds up

A distributor said that companies have consistently been stocking up at distributors, and in some instances, distributors have resorted to pushing excess stock to retailers

The supply chain for fast-moving consumer goods (FMCG) companies is seeing congestion due to persistently low demand. This has led to an increase in inventory days, with stocks accumulating at distributors and compelling them to extend higher credit periods to retailers.

Distributors, Business Standard spoke to, revealed that demand inventory days have more than doubled in some cases, forcing them to offer credit terms as long as 45 days to retailers, as consumer offtake continues to face pressure.

A distributor said that companies have consistently been stocking up at distributors, and in some instances, distributors have resorted to pushing excess stock to