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Route to Market & Supply Chain Blog

Distributor Management – Top 5 Do’s and Don’ts for FMCG Principals

Posted by Michael Thompson on Tue, Jun 10, 2025

We are currently working with a client designing a Distributor Management Training Workshop.

As part of the workshop, we are developing a list of Do’s and Don’ts related to Distributor Management.

 

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Background to Distributor Selection & Management

Before we dive into this, in overall terms, we consider the three phases of Distributor Management & Selection as follows:

These phases follow the process that we call the A-B-C of Route to Market.  This model simplifies the world of RtM into a series of three steps that any RtM practitioner can execute.

Now for the Do’s & Don’ts

In the dynamic world of FMCG, your Route to Market (RTM) strategy and distributor partnerships can make or break your brand’s success. As a Principal FMCG Supplier, mastering this balance is essential; not just for growth, but for long-term sustainability.

Here are the Top 5 Do’s and Don’ts to help you build a high-performing RTM model and distributor network:

✅Top 5 Do’s

  • Do Align RTM Strategy with Consumer Behaviour: Design your RTM based on where, how, and why your consumers shop. Urban vs. rural, modern trade vs. traditional trade—each requires a tailored approach.
  • Do Invest in Distributor Capability Building: Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
  • Do Set Clear KPIs and Governance Structures: Establish transparent metrics for sales, coverage, and service levels. Regular reviews and joint business planning foster accountability and trust.
  • Do Embrace Technology and Data: Use real-time data for demand forecasting, inventory management, and route optimization. Digital visibility enhances agility and decision-making.
  • Do Foster Long-Term Partnerships: Treat distributors as strategic partners, not just transactional vendors. Shared goals and mutual respect drive loyalty and performance.

❌Top 5 Don’ts

  • Don’t Use a One-Size-Fits-All Approach: Markets differ vastly. Applying the same RTM model across regions can lead to inefficiencies and missed opportunities.
  • Don’t Overload Distributors with SKUs: Too many SKUs can dilute focus and strain working capital. Prioritize high-velocity products and rationalize the portfolio regularly.
  • Don’t Ignore Distributor Profitability: If your partners aren’t making money, they won’t prioritize your brand. Ensure margins are fair and sustainable.
  •  Don’t Neglect Last-Mile Execution: Even the best strategy fails without strong in-market execution. Monitor retail presence, availability, and promotional compliance closely.
  • Don’t Underestimate the Power of Relationships: Transactional relationships lead to short-term gains. Invest in trust, communication, and shared success to build resilience.

Final Thought 💡

In today’s competitive FMCG landscape, your RTM and distributor management strategy must be consumer-centric, data-driven, and partnership-oriented. Get these fundamentals right, and you’ll unlock scalable, sustainable growth.

I would also love to hear your thoughts!  Do you use Joint Action Planning with your distributors?  If so, what advice could you offer fellow professionals.

What we do at Enchange Supply Chain & RtM Consultancy

💹 Deliver sales growth for our clients

🌏 Work globally, with our local experts

🎓 We are Route to Market & Supply Chain experts

At Enchange our passion is helping companies improve their route to market and supply chain so they can sell more, at a higher margin and lower cost.

Tags: Route to Market, Michael Thompson, Distribution, RtM Strategy, The ABC of RtM

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