Overcoming The Challenges With BI In FMCG Industry

Long gone are the days when FMGC industry was heavily driven by intensive sales and marketing efforts in order to attract the customer to purchase the products. Rather, FMCG businesses now increasingly seek out customers who will pull the goods directly through supply chain.

This makes it necessary for the businesses to have a better understanding of customer behavior and preferences, and how to keep them engaged. It is difficult to predict consumer behavior and predict demand of the consumers who are tech savvy, updated and aware.

By implementing BI in FMCG industry, businesses in the FMCG industries can optimize all of the data at their disposal and generate predictive insights for quick and effective decision-making.

Businesses in the FMCG industry may optimize all of the data at their disposal and generate predictive insights for quick and effective decision-making by implementing BI capabilities. With deeper insight into consumer behavior, organizations get into better position to direct R&D, better resource allocation, improve the returns of marketing efforts &maximize supply chain efficiencies.

Serious Concerns for FMCG industry

It hasn’t been an easy time for the CPG companies navigating the digital innovation curve. With the expanding sea of existing data streams, social media exacerbates the problems by adding more data to it. Therefore, it becomes crucial for CPG companies to organize, manage, and sort this data in order to make it more understandable and informative in real time.

The only question that arises here is what kind of issues are the FMCG players are facing?

• Identifying the market trend based on customer’s needs at the preferred point of purchase.
• Exploring and implementing new strategies to sell the products based on the consumers’ behavior.
• Maximizing stock levels, managing warehouses, and adding value throughout the whole supply chain.
• Delivering customized promotions and maximizing marketing spends.

The above mentioned are the just few challenges to state that are faced by FMCG industry, there are many more on other front, like tech-savvy consumers with dynamic are demanding value like never before, the globalization is causing expansion of operations and supply chain, the demand for flexible value delivery chains is expanding, and there is a constant frontline battle for packaging, marketing, and shelf space innovation to keep up with the constantly shifting needs and expectations of customers. All of this coupled with the industry environment, infrastructure and the competitive nature of the products, CPG companies look for a point of differentiation to reach the finish line.

Overcoming the challenges with Business Intelligence in FMCG industry

• An effective supply chain management system:
BI solutions can extract intelligent data to unearth and pinpoint cost-cutting opportunities, carry out precise demand forecasting, probe deeply into high-impact issues, and take care of other crucial components required to keep a supply chain operating without a hitch. Through interactive dashboards and visualizations, BI systems enable real-time knowledge sharing and give a complete picture of ongoing processes.

• Continuous Globalized Operations:
It's rather typical for FMCG companies to expand their operations abroad through mergers and acquisitions, strategic alliances, or organic growth. By using a BI solution, FMCG companies can collect information that appears to be unrelated to these growth objectives and, through analytics, put the last pieces of the puzzle together. Mission-critical actions can be combined using user-friendly dashboards to provide a comprehensive overview and strong visibility into daily operations in one location.

• Regulated stock levels:
The success of FMCG companies depends on effective inventory management. Inventory levels can be impacted by demand supply economics, differing safety stock levels, product shelf lives, segment behavior, lead times and cycle times, and share-of-wallet for various product lines. A BI solution gives you the capacity to aggregate data from many sources, manage inventory across warehouses and stores around the world, and aid in accurate demand planning and optimum inventory. Insights into the sales pipeline aid in planning and optimizing the inventory by removing surpluses and so lowering expenses.

• Higher Levels of Assurance:
Both the short- and long-term effects of product quality on costs and profits can be seen. Through a thorough examination of the manufacturing process and quality control procedures related to product creation, business intelligence assists in identifying the root causes of quality degradation. The quality of your finished product can be improved by using BI systems to spot patterns, forecast failure, and identify components that can be repaired and maintained at periods when there won't be a big impact. FMCG companies can guarantee the quality of the items being delivered into the market by having the ability to thoroughly investigate the potential causes of failure.

• A flexible business model:
The development of the Omni-channel experience is primarily to blame for the fragmentation of the once-standard delivery paradigm into different delivery models. Customers are technologically aware, and they have changing needs. CPG companies are experimenting and testing out novel, cutting-edge distribution options as a result. Based on consumer profile information and success indicators, analytics enables CPG companies to determine the most effective and profitable business models. A dynamic distribution approach that is very adaptable can help keep the cost of sales low.

Making intelligent business decisions

Regulations, complicated supply chains, and escalating competition have forced FMCG organizations to implement the best BI systems. Because of the FMCG industry's dynamic nature, it is essential to make timely, precise judgements that are supported by data. It goes without saying that decision-makers who have access to thorough and quick insights make decisions that are more accurate. To offer value, increase sales, and achieve all company objectives, an efficient combination of technology, business analytics, and system of results management is required.