Developing an Integrated Distribution Channel Model for Fast Moving Consumer Goods Manufacturing and Importing Companies in Iran

Document Type: Original Article

Authors

1 Associate Professor, Department of Management and Accounting

2 Ph.D. student, Department of Management and Accounting, Allameh Tabatabai

Abstract

One of the challenges facing supply chain management in Iran is the distribution system. In this regard, fast moving consumer goods are a group of commodities, which strongly require a coherent and efficient distribution mechanism. The purpose of this study was to propose a conceptual model to design a goods distribution channel for fast moving consumer goods manufacturing and importing companies in Iran based on the grounded theory. At the model design step, an open-ended interview was carried out with 19 marketing, sales and logistics experts, desired codes were extracted from the responses using open coding and finally, each of the extracted codes was assigned to a concept. After this step, the extracted concepts based on the paradigm model were assigned to different categories including causal conditions (organizational issues), pivotal issues (pivotal distribution channel issues), strategies (channel design and maintenance strategy), contextual conditions (macro environment issues), confounding conditions (micro environment issues) and consequences (functional outcomes) using axial coding, and a conceptual model was developed. At the quantitative model assessment step, structural equation modeling was used. For this purpose, a questionnaire consisting of 81 items was developed and distributed among the marketing and supply chain experts, and a total of 67 questionnaires were returned. According to the results, the relationship was significant between organizational issues and pivotal distribution channel issues; pivotal distribution channel issues and channel design and maintenance strategy; channel design and maintenance strategy and functional outcomes; macro environment issues and organizational issues and channel design and maintenance strategy; and finally, micro environment issues and channel design and maintenance strategy.

Keywords