Problem statement:

As soon as industry is growing , technological gadgets have simplified .the global market it has now
become much easier to forecast thing for the business , however in such competitive era the cost
especially the variable cost is the one which is need to be considers significant .

Therefore in order to survive in this competitive environment the value ability of distribution cost is
significantly is take place a very important role in FMCG industry.

So there is a need to study impact of distribution cost in FMCG.

Distribution cost is mostly depend on fuel, labor and rental cost we take 3 variable and try to see how
much these affect to our distribution cost .in past researches discuss on whole distribution cost but here
we select 3 main variable.

Research objective: the rationale behind the conduction of this study is to observe the impact of
inflation on distribution process. Determining the effect inflation shares in labor cost , transportation
charges along with rental cost of an organization therefore ,adding all such issues through this study will
be the main focus of this study and it is a descriptive study in this manner.

What are the critical factors that determine the effectiveness of distribution process of FMCG sector of
Pakistan?

Does labor significantly affect by high inflation?

Does fuel cost significantly affect by inflation?

Does rental cost significantly affect by the inflation?

How distribution process effectiveness significantly affected by inflation.

Hypothesis:

 In inflation fuel cost is increase, distribution cost increase but is it really affecting the final price
of product.
 Labor cost is have strong relationship with distribution cost .but in inflation era labor cost
increase the cost of final product
 Rental expenses have a weak relationship to distribution cost in inflation era but we will see
how much it is affect to our distribution cost.