Direct Payments to FMCG Manufacturers: A Game-Changing Approach

Jan 18, 2024 | blog, tokenization, use cases

In the ever-evolving world of FMCG (Fast-Moving Consumer Goods), the prospect of direct payment from consumers to manufacturers is an innovative approach that could solve a range of key issues in the industry.

  1. Shortening the Supply Chain: Traditionally, FMCG products pass through a lengthy chain involving distributors, marketing agencies, and logistics companies before reaching the consumer. Our proposal simplifies this process, enabling direct interaction between consumers and manufacturers. This not only reduces delivery time and costs but also enhances process transparency.
  2. Financial Benefits for Manufacturers: Unlike models offered by companies like Amazon, where payment is made several months after the sale, direct payment ensures a quick cash flow for manufacturers. This is particularly vital for small and medium-sized enterprises, where each payment transaction significantly impacts working capital.
  3. Strengthening Consumer Relationships: Direct links between manufacturers and buyers foster trust. Consumers gain insight into the production process, raw material sourcing, and the ecological responsibility of the products, aligning with the values of today’s conscious consumer.
  4. Addressing Traditional Model Issues: Compared to Costco and Amazon, our model eliminates many intermediaries, simplifying and speeding up the delivery of goods to the end consumer. This allows manufacturers to focus on quality and innovation, rather than managing complex logistical and marketing processes.
  5. Potential Challenges: Despite clear advantages, transitioning to a direct payment model requires careful planning and consideration of potential risks, such as supply chain management and ensuring reliable payment systems.

In conclusion, the direct payment model to FMCG manufacturers opens new opportunities for improving efficiency, reducing costs, and strengthening the ties between manufacturers and consumers. It’s an innovative approach to how we buy and sell goods, potentially bringing significant benefits to all market participants.

We’re eager to hear your thoughts on this approach. What do you think? We’re looking for professional insights, potential partners, and mentors. Join the conversation!

By Igor Kolosiuk, CEO of Ordinals:Goods.