According to LEK consulting, FMCG is considered as one of the pillars of the country’s economy, because 65% of retail sales come from the FMCG business. However, this is not supported by a seamless business process. FMCG has a long business process and involves many parties.
In the process, FMCG Indonesia involves many parties. Starting from the increasing number of grocery stores and online shops as well as the presence of minimarkets & supermarkets in Indonesia, which color the diversity of parties in the world. Unfortunately, this diversity cannot be assessed as a positive value because it makes interactions between parties more complex.
Read more : How Paper.id can help you to manage A/P seamlessly
The dependence level of every party in FMCG Indonesia
Business interactions occurred between parties in ordering goods. If one of the parties is cut off, it is certain that the flow of the existing supply chain will be hampered. This is one of the characteristics of FMCG, where each party depends on each other. In addition, they are also influenced by consumer purchasing power which tends to fluctuate.
Based on this problem, FMCG producers need to establish good relationships with their buyers. That way, the process of purchasing and shipping goods can be channeled properly. In addition, this process is also influenced by the distributor’s payment to the producer. The smoother the payment process, the better the business process will be.
In fact, this is not in line with reality. Paper.id has conducted research on one of our clients, a well-known national distributor with 3000 active retail stores that conduct regular purchasing activities. The distributor had difficulty in paying off the payment to the producer, even though they had been given a due date. Often, they pay more than the deadline that has been set. In addition, retail parties also often make payments after they are due. What is the proper way to mitigate it?
Read more : 5 popular problems on procurement and how to overcome it?
How Paper.id can help your business?
As a solution for payment transaction, Paper.id can help make interactions between business people easier with the e-invoicing feature. That way, from retail to above, they can communicate and send business documents through PaperChain.
With e-invoicing transactions, all transaction data will be recorded and validated automatically. This helps you gain access to funding to get invoices paid in advance. This service is licensed by the OJK and has collaborated with various leading financial institutions in Indonesia such as Bank Jago, Modalku, Alami, KoinWorks, and Investree. In addition, Paper.id also has another solution in the form of automatic reconciliation that can change the payment status to paid when it has been paid by your partner.
Paper.id also has various other features that have helped many Indonesian FMCG entrepreneurs develop. Find out more about how Paper.id can help well-known FMCG distributors with 60 branches and 300,000 retailers get more efficient operations through whitepapers that you can download here for free!