In the world of consumer-packaged goods (CPG), the path from manufacturer to consumer is rarely straightforward. While direct-to-retail (D2R) models offer transparency and control, indirect and hybrid routes—those involving distributors, wholesalers, and other intermediaries—introduce layers of complexity that can obscure visibility into sales performance and financial outcomes.
The challenge isn’t logistics—it’s clarity in trade planning. When products move through intermediaries, companies often lose sight of sell-through volumes, pricing, and timing. Even when sell-through data is available, the lack of integration across systems makes it difficult to forecast revenue, manage trade spend, and evaluate promotional effectiveness with confidence. This is where route to market data intelligence becomes a game-changer.
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In this article, we’ll explore how CPG companies can transform opaque sales channels into clear, data-driven ecosystems. We’ll unpack the challenges of indirect routes to market, the limitations of traditional ERP systems, and how Visualfabriq’s innovative methodology bridges the gap between commercial strategy and logistical execution —enabling accurate revenue forecasting and optimization.
The complexity of indirect routes to market
CPG companies often rely on a mix of direct and indirect sales channels to maximize market coverage. In direct routes—where manufacturers sell and ship directly to retailers—there’s typically a clear link between shipments (sell-in) and end-consumer sales (sell-out). In indirect retailer routes, however, that connection becomes less transparent due to the complexity of sell-through. Even when sell-through data is available, integration challenges often prevent manufacturers from turning it into meaningful, actionable insights.
As a result, CPG companies struggle to:
- Accurately forecast demand
- Optimize promotions
- Manage trade spend
- Reconcile accruals and claims
- Evaluate profitability
Why traditional ERP systems fall short
Most ERP systems are designed for direct sales. They track transactions at the sold-to level but fail to capture the nuances of indirect retailer performance. This creates a disconnect between commercial planning and actual market execution.
For example, planning a promotion at the distributor level may not reflect how that promotion performs at the retailer level. Without granular data, commercial teams are left guessing—leading to inefficiencies, missed opportunities, and distorted financial outcomes.
Visualfabriq’s approach: From ambiguity to clarity
Visualfabriq’s route to market capability is built to solve this problem. By introducing a dual-view structure—distinguishing between a commercial view and a logistics view—the software adds a new planning dimension that helps CPG companies make sense of fragmented data.
- The commercial view is where deals, promotions, and contracts are managed.
- The logistics view focuses on sourcing and physical distribution.
Together, these perspectives allow companies to track both the strategic and operational sides of their route to market. Whether sell-through data is available or needs to be modeled, Visualfabriq applies sourcing and distribution ratios to determine or estimate volume flows and integrate them into demand forecasting, trade spend management, and revenue growth planning.
Key benefits of route to market data intelligence
- Unified business perspective
Visualfabriq’s methodology enables CPG companies to reason from their own profit and loss (P&L) statements, integrating data across manufacturers, distributors, and retailers. This “triple P&L” view provides comprehensive financial insights and supports better decision-making.
- Accurate forecasting
By applying sourcing percentages and distribution ratios, companies can forecast demand more precisely—even in indirect channels. This improves trade planning accuracy and enables calculated outcomes in retailer deals, rather than relying on lump sums.
- Accurate accrual and claims management
Manual trade accruals are time-consuming and error-prone. Visualfabriq automates this process, ensuring that financial records are accurate and up to date. Faster claims settlement also helps strengthen retailer relationships.
- Promotion planning at the retailer level
Unlike ERP systems that plan promotions at the sold-to level, Visualfabriq enables planning at the indirect retailer level. This provides a more accurate view of promotional effectiveness and helps commercial teams understand volume trends and campaign impact.
- Financial controlling and commercial management
With insights into profitability for all plan accounts, CPG companies can evaluate whether distributors and retailers are delivering value. This supports smarter contract negotiations, channel strategy development, and promotional planning.
Seamless integration and agility
Visualfabriq’s solution harmonizes data from multiple sources and integrates seamlessly with ERP systems. This ensures that data flows smoothly across applications and teams, enabling frequent updates and agile responses to market changes.
Efficiency. Effectiveness. Predictability
Visualfabriq’s route to market data intelligence delivers measurable impact:
- Efficiency: Eliminates manual work in planning, claims, and reviews.
- Effectiveness: Enables strategic decisions and spend optimization based on accurate data.
- Predictability: Supports reliable volume forecasts and financial outcomes.
Conclusion: Clarity in every channel
As route to market complexity grows, data intelligence is no longer optional—it’s essential. Visualfabriq’s approach empowers CPG manufacturers to manage both direct and indirect channels with confidence, clarity, and control.
📥 Don’t let complexity cloud your commercial planning. Download the full Route to Market whitepaper to explore how Visualfabriq’s methodology can transform your indirect and hybrid route to market strategy.
