The Consumer-Packaged Goods Industry broadly contains FMCG, Pesticide, Insecticide and Pharmaceutical Industries. Even White Goods Industry follows similar Industry dynamics to some extent. The peculiar aspect of CPG Industry is that the manufacturing is mostly formulation based and relatively easier compared to other hardcore manufacturing Industries. The complexity in CPG Industry lies in the Distribution side, since in India and Developing Nations most of the CPG are reaching the customer through general trade unlike Developed Nations where Goods reach the customers through Modern Trade.

In India, Middle East and Asia, generally CPG are sold or credited to Distributor through a Distribution Channel and Distribution Channel then credits the goods to Retailers and Retailers finally sell the goods to the end consumers. In India currently, General Trade is significantly higher compared to Modern Trade, although in the given future Modern Trade and Organized General Trade will become a significant segment. Therefore, the complexity in Distribution lies across line and tracking goods, packing material, receivables, target schemes, rebate, consumer behavior, expiry, rejected damage across the Distribution Channel which is Dealer, Distributor and Retailer. Due to multiple stages from Manufacturing to end consumption, replenishment and production and supply planning becomes cumbersome and inaccurate.

From an ERP point of view tracking, schemes, discount, rebate becomes a challenge area.