Lahore School of Economics

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Distribution
November 08, 2025

Mr. Ahmad Salman, CEO Sigma Distributors delivered a session on Distribution to the MBA cohort at the Lahore School on 7 November 2025.

Salman, a very experienced distributor, right at the beginning drew with markers on the whiteboard a comprehensive flow diagram of distribution of FMCGs, beginning with Manufacturers and Importers, with the flow proceeding to Distributors, and then to Wholesalers, but also to Hypermarkets, and again from Distributors to Online Stores, Super Markets, Kiryana and General Stores, and finally to the customer/consumer.

He separated this flow diagram into First Mile, Middle Mile, and Last Mile. Middle Mile complexities included high variation in the size of orders to be delivered and the high number of POS to serve.

He also spoke about the role of eB2B or e-Wholesalers such as Bazaar. He thought distributors in Pakistan had left some gaps, which were covered by these e-Wholesalers. However, most of these had to close shop mainly because of the over-supply of venture capitalist funds. The model was good, and they would be back one day.

He then explained the difference between Distributor viewed as a service provider versus a trader. A trader has many more options but a distributor is bound by the contract he signs with the Manufacturers or the Principals, e.g. either around the outlets he can sell to, or the products he can sell (e.g. he may be with Nestle, but not be able to sell Pure Life). Distributors have, or should have, a Vision and a Mission, which traders do not have.

Is it not better for a Distributor to only sell to 4 to 5 wholesalers? He can make more money. But this will compromise the value of the brand, even to the extent of commoditizing it, as the Principal will lose control over the brand. Wholesalers work only on margins.

Salman also noted the amount and power of data that has grown over the years. He thought of himself as a data analyst who makes informed decisions based on data that is coming in from everywhere.

One of the challenges of distribution that a distributor faces is modes, efficiency and timely cash collection from the shop-keepers. Salman went to some length in explaining how his company is innovating in order to come to terms with it.

His one message to the MBAs was the increased expectations from them given that AI has already solved many problems. Now, instead of the engineers solving e.g. route optimization problems, it’s the MBAs who will need to solve these.

Mr. Ahmad Salman’s session on Distribution added significant value to the MBAs’ knowledge of distribution and even of business complexities. He received sustained ovation and the class thanked him for sharing his vast knowledge of distribution.

Labels: Guest Speaker, Winter 2025