Application of technology to enhance the value of FMCG (Part 3)

Multinational FMCG companies learn from their experience globally, but others are investing in their own technology groups.

ITC, the company that owns the wheat brand Aashirvaad and the Sunfeast biscuit line, has a professional IT team working closely with businesses and cooperating with a number of partners.

The ITC spokesperson has the unique advantage of leveraging the expertise within our IT branch – ITC Infotech – to develop solutions to enhance supply chain capabilities, including agricultural auxiliary.

Recently, there has been a shift in consumer purchase behavior towards purchasing locally, that has prompted the need for better local promotional efforts to generate brand awareness in small towns. FMCG’s play a large part in the economy, as inelastic products that touch every part of consumer life in one way or another. Businesses that supply FMCG’s to a rural community can help provide employment opportunities, as well as drive down the cost of such products in those rural areas.

The fact that more and more people are buying online, the purchasing power increased more strongly in urban areas increased to 10.7% s compared to the same period last year. At the traditional distribution channel, the purchasing power decreased by 2.6% compared to the previous year.

 “We are investing heavily in some of the advanced technologies in the field of supply chain analysis, starting with artificial intelligence-based tools to sense needs, collaboration platforms, and ordering tools. of our customers based on AI, advanced safety stock models, in-plant robots for E2E Series Automation and above all to improve our staff’s knowledge of advanced digitalization and analytics”, Nivea’s Das said.

The company achieved a 10% increase in forecast accuracy and reduced logistics costs (as a percentage of net sales) by 100 basis points. It has also seen increased productivity across manufacturing facilities, all of which are converted into direct cost savings.

Companies are also actively working to bring their suppliers and distributors on board as their participation is critical in ensuring the system operates. Despite the changes, most companies agree that upgrading technology is an ongoing process.

Source: Economictimes