Conventional
FMCG value chain to retailers
An independent store owner purchasing an FMCG product is the last point in a long line of producers, distributors, wholesalers and semi-wholesalers. Modern retailers receive products directly from distributors, if not the producer itself. Cutting out the middle-men in the supply chain, retail chains invest in their own warehousing and distribution centres.
What results is a cheaper and speedier way to bring fresh produce to the consumer. Lacking the resources to build such in-house capabilities, traditional retailers have been losing out. Until now, L.E.K Consulting highlights the up and coming segment of online B2B marketplaces – where independent retailers can make their supply orders with the click of a button.
Gotoko, Mitra and Grab Kio are some examples of B2B ecommerce platforms that link traditional retailers directly with distributors through convenient models, cutting out time and costs from the supply chain. An alternative model is exemplified in Gudangada, which makes the intermediaries in the traditional supply chain easier to deal with, rather than eliminating them altogether.

An independent store owner purchasing an FMCG product is the last point in a long line of producers, distributors, wholesalers and semi-wholesalers. Modern retailers receive products directly from distributors, if not the producer itself. Cutting out the middle-men in the supply chain, retail chains invest in their own warehousing and distribution centres.
What results is a cheaper and speedier way to bring fresh produce to the consumer. Lacking the resources to build such in-house capabilities, traditional retailers have been losing out. Until now, L.E.K Consulting highlights the up and coming segment of online B2B marketplaces – where independent retailers can make their supply orders with the click of a button.
Gotoko, Mitra and Grab Kio are some examples of B2B ecommerce platforms that link traditional retailers directly with distributors through convenient models, cutting out time and costs from the supply chain. An alternative model is exemplified in Gudangada, which makes the intermediaries in the traditional supply chain easier to deal with, rather than eliminating them altogether.

Partnering with B2B marketplaces can put general trade back in a competitive position, leveraging all its inherent
advantages to shut modern retail out of the market share. Many of these platforms have emerged in the last year
or two – recognising a high-growth market opportunity