FMCG items start to pile up in supply chain as demand starts to taper off

Inventory days and credit days on the rise

The fast-moving consumer goods (FMCG) supply chain has started to fill up, with demand on the wane. Rainfall remained elusive for most of August, affecting incomes and consumer demand. Consequently, the number of inventory days is on the rise for stockists, while credit days between retailers and distributors have also gone up.

Amid the changing scenario, distributors and stockists have also curtailed their purchases.

A Maharashtra-based distributor, who caters to the western region and did not want to be identified, said that demand had slowed down considerably and his inventory holding days were increasing gradually. Right now, his inventory holding days stand