Cool Tips
We break down the jargon used in FMCG into plain english!
Common Acronyms in FMCG
Uncovering Fresh Insights for Your Business
The fast-moving FMCG environment relies heavily on industry-specific acronyms. This guide breaks down the most common terms to simplify communication and improve understanding. From SKU (Stock Keeping Unit) to POS (Point of Sale), these acronyms are essential to everyday operations and strategic decision-making, making this a practical reference for anyone working in FMCG.
.jpeg)
Financial
Financial terminology underpins every commercial decision in the FMCG industry. Understanding these terms is essential for evaluating profitability, setting effective pricing, and managing overall financial performance. With a clear grasp of key financial concepts, professionals can make confident decisions, assess commercial opportunities, and monitor critical metrics. The following section explains commonly used FMCG financial terms to support both day-to-day operations and strategic planning.
Term Definition
Margin Margin is equal to sales minus the cost of goods sold (COGS).Markup Markup is equal to a product’s selling price minus its cost price.RRP Recommended Retail Price.COGS Cost Of Goods (the sum of all direct costs associated with making a product).ROI Return on Investment.ROAS Return on Ad Spend.EOM End of Month.GST Goods & Services Tax.
Packaging
Packaging is a critical component of success in the FMCG sector, influencing everything from shelf appeal to product protection and supply chain efficiency. It balances functionality with brand communication, making it essential for teams to understand the terminology involved. Clear knowledge of packaging terms supports smarter product development, smoother logistics, and stronger retail execution. Below is an overview of commonly used packaging terms in FMCG.
Term Definition
GTIN Global Trade Item Number. GTIN can be used to identify types of products at any packaging level (e.g., consumer unit, inner pack, case, pallet).EAN European Article Number. An international standard numbering and barcode system used primarily in retail applications.Euro Hole The little hole at the top of packaging that is used to hang your product.Tear Notch The little 'Nick' in the side of the pouch that enables customers to tear the top off easily.SUP Stand Up Pouch.3 Side Seal Pouch that is glued on 3 sides and open at the bottom and then heat sealed once product is out inside.Flow Wrap/Film/Rewind A roll of film used on a flow wrapping machine. Think Muesli bar and protein bar packaging.Fin Seal The seal on the back of the product that is created when using film packaging.Matte Finish Not Shiny.Gloss Finish Shiny.SRT / SRP / RRP Shelf Ready Tray / Shelf Ready Packaging / Retail Ready Packaging. The display box that sits on the shelf in the store. Consumers see this.Shipper The outer carton where the SRT/SRP/RRP is put into for delivery. Consumers don't see this.
Logistics
Logistics underpins the smooth operation of the FMCG industry, ensuring products move efficiently from manufacture to shelf. A clear understanding of logistics terminology supports better planning, faster distribution, and stronger alignment across supply chain partners. The following section outlines key FMCG logistics terms to enhance clarity and coordination throughout the value chain.
Term DefinitionFIS Free Into Store (Seller pays for the freight).FOB Free/Freight on Board (Buyer pays for the freight).DC Distribution Centre.Chep/Loscam Pallet Logistics companies. You will need to ship on either of these pallets when dealing with major grocery chains.
General
A solid understanding of common FMCG terminology improves communication and helps teams operate more effectively across the business. These terms are used daily across functions including product development, sales, marketing, and supply chain. The following list highlights widely used FMCG terms to support clear discussions and informed planning.
Term Definition
MOQ Minimum Order Quantity.FMCG Fast Moving Consumer Goods.SKU Stock Keeping Unit (Think of this as different variations of your products).POS Point of Sale (Cash register system).NPD New Product Development.UPSPW Units Per Store Per Week (Hurdle rates grocery chains use to assess product sales).NAFNAC No Artificial Flavours, No Artificial Colours.D2C Direct to Consumer (Retail Sales).B2B Business to Business (Wholesale Sales).OOS Out Of Stock.PO Purchase Order.Lead Time Time required from ordering to receival of stock.UPSPW Units per store per week.