PROLIFERATION OF CHAIN GROCERY STORES AND ITS EFFECTS ON FMCG DISTRIBUTORS’ PERFORMANCE

This study analyzed the effects of the proliferation of Chain Grocery Stores on the performance of the Fast-Moving Consumer Goods Exclusive Distributors in terms of Order Fill Rate, Delivery Timeliness, and Sales Level. The researchers used a 4-point Likert scale and encouraged the respondents to share their experiences to expound their answers. Survey results show that suppliers prioritize big Chain Grocery Stores than the FMCG Exclusive Distributors as the Chain Grocery Stores impose penalties for incomplete and delayed deliveries. On the proliferation of chain stores, Chain Grocery Stores comprise a total of 80% in Manila City and are in densely populated areas. The researchers recommend that FMCG Exclusive Distributors invest in a modern state-of- art system that links the stand-alone grocery stores› purchase order to the FMCG Exclusive Distributors’ warehouse and purchasing team. As for Delivery Timeliness, the FMCG Exclusive Distributors should perform time and motion studies with their respective principals for a realistic delivery schedule. Manufacturers and country importers should consider an on-call third party logistics in cases of truck and personnel shortage. Lastly, assign a business development team to explore untapped areas of Manila City.