Margins remain a pain point for organised FMCG supply-chain companies

Experts say gross margins are low, with the last-mile supply chain and retailer not making money

Jiomart B2B is the latest among organised supply-chain companies to bite the bullet, shutting down its warehouses, and asking its employees to leave.

Why are companies finding it difficult to sustain the supply-chain business? Experts point out that gross margins in supplying fast-moving consumer goods (FMCGs) are very low.

While it does look attractive because it is the largest part of the consumption market, the last-mile supply chain and retailer are not making money.

“FMCG brands have ensured high margins for their businesses by streamlining and smoothing their supply chains over decades and making them cost-efficient,” said Anshuman Singh, founder