The Fast-Moving Consumer Goods (FMCG) industry in Nigeria is one of the most dynamic and competitive industries, with products in high demand and quick inventory turnover. Due to the nature of the industry, companies depend on distribution and supply chains to guarantee the smooth flow of goods from producers to distributors, retailers, and, ultimately, customers.
Given the nature of FMCGs, any disruption in the distribution and supply chains will negatively impact the projected income and market share of companies in the sector. Therefore, there is a need for a well-written agreement on distribution and supply chain, these agreements serve as legally binding instruments that define the rights and obligations of the contracting parties, including terms of supply, pricing, risk allocation, intellectual property rights, and dispute resolution mechanisms.