Basics
Starting an FMCG distributorship: the systems to set up in the first 90 days
Once the company appoints you, these are the money, stock and people systems to put in place before the first months of credit and stock catch up with you.
29 September 2026 · 8 min read
Short answer
Before your first load, set up five things: written credit terms with the company, a credit policy for shops, day-wise beats, one way of recording every bill and payment, and a daily close for each van. New distributors rarely struggle to sell; they struggle with credit and stock control in months two and three.
Getting appointed is the hard part of the sales pitch. Running the distributorship is a different job: money going out to the company, credit going out to shops, stock going out on vans, and all of it has to come back. The habits you set in the first ninety days are the ones you will live with.
Before the first load
terms, policy, systems
Weeks 1–4
beats, shops, daily close
Months 2–3
credit review, stock review
From month 4
grow routes and brands
Before the first load
Get the company’s terms in writing
How long you have to pay the company, how schemes and claims are settled, what happens to damaged and expired goods, and whether festival or launch stock can be returned. Every company differs, so ask the area sales manager for their exact requirements and terms in writing. A clause you did not ask about is the one that costs you later.
Decide how you will record everything
Bills, payments, stock in the godown and stock on each van. Starting on a proper system from day one is far easier than moving a year of notebooks later. Most distributors also register for GST because companies and shops expect GST bills; check what applies to you with your accountant.
Weeks 1 to 4: routes and routine
Build day-wise beats
Give every shop a fixed day of the week and every salesman a fixed list for each day. Shops plan their buying around your visit. See beat planning for a small distributor.
Set a credit policy before the first shop asks
New distributors are tempted to give credit freely to win shops. Decide the limits in advance, write every credit bill down, and track how old each balance is. See tracking shop credit without a notebook.
Close every van, every evening
Count what went out, what was sold, what came back and what was collected, the same day. Skipping it in the busy first month is how small gaps become habits. See closing a van’s day in fifteen minutes.
Months 2 and 3: the reviews that save you
- Credit review: which shops are past 30 days, and why. Tighten before the company’s payment is due, not after.
- Stock review: what is selling, what is slow, what is close to expiry. See finding the stock that is stuck.
- Salesman review: shops covered, bills per day, money collected. See checking salesmen’s work fairly.
If some of the words the company uses are new, our FMCG distribution glossary explains them in one sentence each.
How Mulberry Sales helps
A new distributorship is the easiest time to start on a proper system. Mulberry Sales covers van billing on the salesmen’s phones, van loading and unloading, per-shop credit limits, collections and a daily close with profit at cost. The Starter plan covers 3 salesmen and 2 vans for ₹1,799 a month for the whole business. For the first 5 businesses each month we put your shops and products in for you and train your salesmen at your godown. See how to get started.
Questions people ask
What does a new FMCG distributor need to set up first?
Before the first load: written credit terms with the company, a credit policy for shops, day-wise beats for each salesman, a decision on how every bill and payment will be recorded, and a daily routine for closing each van's cash and stock.
What is the biggest mistake new distributors make?
Giving shops credit freely in the first months to win them, without limits or records. Sales look good, but the money is stuck with shops by the time the company's payment is due.
How much investment does an FMCG distributorship need?
It depends entirely on the company, the category and the territory: godown size, number of vehicles and the working capital the company expects all vary. Ask the company's area sales manager for their exact requirements in writing.
Found this problem in your business?
Don't estimate it. Run one van on Mulberry Sales for 14 days with your own shops, products and salesman, and measure it. One price covers your whole business, not each salesman.
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