Application of technology to enhance the value of FMCG (Part 1)

FMCG companies are leveraging technology to beat long-term challenges and build emerging opportunities in a developed market.

Having no inventory at retailers and making new products quickly available is crucial for FMCG companies. An effective network to push a often perishable cargo pipeline is also key.

In addition, they must ensure that their products are always refreshed, have enough market and their working capital ratio is constantly improving.

The following are the most important factors driving technology adoption in this area.

1. The first steps

A few years ago, Mumbai-based consumer goods company Marico, which sold the Parachute cooking oil brand and Saffola cooking oil brand, introduced a new route optimization system for geotagging employees. salesperson. Since then, the company has increased its direct distribution reach 20%, but with the same number of salespeople.

“Another initiative – Reducing the number of intermediaries in the distribution channel – has reduced shipping time by up to 30%,” said Sanjay Mishra, managing director. The company has also fully automated its business review process for salespeople. This led to the release of about 1100 days.

“Advances in technology and the Internet of Things (IoT) have created a transformative impact in the supply chain process – from assessing market demand using digital analytics forecasts to an integrated operational planning strategy”, said Mr. Ankur Bhagat, Head – Supply Chain, Procter & Gamble – Subcontinent India.

P&G, famous for Ariel shaving products and shaving products for men, has set up a dynamic distribution tool to optimize the market distribution system. This has reduced delivery times by up to 20%, cutting both costs and carbon emissions.

“The main challenges of the growing FMCG companies are the ability to effectively display data and track the whole value chain.”, Mohan Goenka, Director, Emami, manufacturer of Boro Plus antiseptic cream Kolkata-based and painkiller Zandu Balm said, “this is where technology becomes indispensable in promoting growth and productivity.”

Emami has implemented a distributor management system that makes transactions quicker and more accurately. The system is helping it track daily secondary sales, better manage inventory through automated demand fulfillment, online complaint handling and key data management from one location.

(To be continued)

Productivity and Quality Office