Building a Resilient GTM Strategy to Address Supply Chain Issues in the FMCG Industry

India’s FMCG and consumer goods sector is a cornerstone of the economy, contributing ~10% to GDP (₹9.7 lakh crore in 2025) and employing over 3 million people. Spanning packaged food, beverages, personal care, home care, durables, and the fast-growing D2C segment, it operates through a complex value chain of manufacturers, logistics providers, distributors, modern trade, kirana networks, and ecommerce platforms. A robust go-to-market (GTM) strategy is pivotal to align production, distribution, and retail execution in this hyper-competitive landscape. Structural themes like SKU proliferation, shorter product life cycles, increasing personalisation, and expansion into tier-2 and rural markets amplify the need for resilience, especially as supply chain issues threaten profitability and market reach.

What’s Causing Supply Chain Issues in the FMCG Industry?

Supply chain issues in the FMCG sector arise from interconnected challenges disrupting seamless operations:

• Raw Material Price Volatility: Fluctuations in prices of commodities like palm oil or packaging materials destabilise production costs and planning.
• Last-Mile Delivery Gaps: In rural and tier-3 towns, fragmented logistics networks and poor connectivity create significant supply chain issues.
• Infrastructure Challenges: Limited warehousing, inadequate cold chain facilities, and interstate logistics inefficiencies hinder scalability.
• Tech Adoption Gaps: Outdated systems for demand forecasting and inventory planning lead to stock-outs or overstocking, exacerbating supply chain issues.
• Regulatory Disruptions: Frequent GST rate changes, FSSAI compliance shifts, and packaging regulations add operational complexity.
• External Shocks: Geopolitical tensions, pandemics, port congestion, and extreme weather events like monsoons intensify supply chain issues, causing delays and stock-outs.

1. Strategic Implications for GTM Strategy Amidst Supply Chain Issues

Supply chain issues necessitate a realignment of GTM strategies to maintain competitive advantage, especially given shorter product life cycles and rising demand for personalised products.

• For FMCG Majors

1. Diversify Sourcing Base: Reduce material concentration risks by onboarding suppliers across geographies, e.g., sourcing edible oils from Southeast Asia and Latin America.
2. AI-Driven Demand Forecasting: Use AI to analyse sales, seasonal trends, and market signals, improving inventory planning and mitigating supply chain issues.
3. Route-to-Market Efficiency: Digitise distributor relationships to track stock movement and enable real-time order adjustments, addressing logistics disruptions.
4. Dynamic Pricing Models: Adjust pricing based on regional stock availability and transportation costs to maintain margins amidst supply chain issues.

• For D2C Brands

1. Modular Supply Chains: Partner with 3PL providers to create flexible supply chains that adapt to demand spikes or disruptions like port delays.
2. Predictive Analytics: Leverage data for replenishment and seasonal planning, minimising overstocking and stock-outs caused by supply chain issues.
3. Backend Integrations: Ensure seamless data flow across Shopify, ERP, and WMS for unified operations and faster response to disruptions.
4. Localised Fulfilment Centres: Establish hubs in key pin codes to enable rapid delivery, countering last-mile supply chain issues.

2. Hybrid Consulting Approach to Build Resilience Against Supply Chain Issues

A cross-functional GTM strategy integrating growth, technology, financial, and legal perspectives is essential to overcom eSupply chain disruptions.

• GTM / Growth Strategy

1. Channel Prioritisation: Use profitability matrices to focus on high-margin channels like modern trade or ecommerce.
2. SKU Rationalisation: Optimise portfolios by eliminating low-velocity or logistically challenging SKUs, reducing Supply chain disruptions.
3. Strategic Partnerships: Collaborate with logistics aggregators to enhance reach and efficiency in tier-2 and rural markets.
4. Vernacular and Hyperlocal Execution: Customise GTM strategies with regional language campaigns and localised promotions for deeper penetration.

• Tech-Enabled Distribution

1. IoT and RFID: Deploy for real-time inventory visibility, reducing stock discrepancies caused by Supply chain disruptions like port delays or warehousing bottlenecks.
2. CRM + DMS Integration: Achieve a unified view of sales and supply, enabling proactive responses to disruptions.
3. Blockchain for Traceability: Use blockchain to track supplier origins, ensuring transparency and mitigating disputes over raw material shortages.

• Financial & Legal Strategy

1. Vendor SLAs and Contracts: Renegotiate logistics contracts with disruption clauses to protect against Supply chain disruptions like weather-related delays.
2. MSME-Linked Schemes: Access government-backed working capital to maintain buffer stock, cushioning against raw material volatility.
3. Regulatory Compliance: Proactively manage ESG, GST, and FSSAI frameworks to minimise friction and ensure compliance amidst regulatory Supply chain disruptions.

3. Illustrative Examples of Addressing Supply Chain Issues

Real-world examples highlight how strategic interventions address Supply chain disruptions:

• Example 1 – Demand Forecasting Fix: A packaged food brand partnered with a SaaS AI firm to automate store-level demand forecasting. This reduced stock-outs by 30% and cut inventory holding costs by ₹12 crore, directly tackling Supply chain disruptions.
• Example 2 – D2C Fulfilment Pivot: A D2C beverage startup shifted to a zonal micro-warehouse model, integrating ERP and delivery APIs. This slashed delivery times from 5 days to 36 hours during monsoon disruptions, overcoming critical Supply chain disruptions.

Conclusion: Building a GTM Strategy to Overcome Supply Chain Issues

To future-proof GTM strategies against recurring Supply chain disruptions, FMCG players must adopt a multi-pronged approach. Tech adoption (AI, IoT, blockchain), agile planning, legal foresight, and omni-channel adaptability are critical to building resilience. By embedding these elements into their GTM frameworks, companies can navigate disruptions, ensure product availability, and unlock growth in India’s dynamic consumer market. What steps is your organisation taking to address supply chain issues and build a resilient GTM strategy?

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