Learn how you can leverage the power of Business Intelligence to empower your company with data-driven decisions approach.
The Fast-Moving Consumer Goods (FMCG) industry constantly evolves, and companies face various challenges as they strive to grow and succeed. Despite the industry's growth potential, several factors can hinder the growth of FMCG companies. By regularly monitoring and analyzing the right Key Performance Indicators (KPIs), your company can gain valuable insights into its business and make informed decisions that drive growth and success.
Whether regulatory, technological, or supply chain-related, bottlenecks can create delays, increase costs, and impact customer satisfaction. For example, according to a report by Deloitte, supply chain disruptions caused by the COVID-19 pandemic have led to increased costs and reduced profitability for FMCG companies (Delloite)
Steven Hawking, a world-renowned physicist, believes that "Artificial intelligence is the future, not only for the FMCG industry but for every aspect of our lives." AI for FMCG will gain profitability by 38% and improve productivity by 40% by 2035, according to a report by Accentur (Accenture, 2017)
"Artificial intelligence is the new electricity" -Andrew Ng, former chief scientist at Baidu and co-founder of Coursera. According to MarketsandMarkets, the global AI in the FMCG market is expected to develop at a CAGR of 26.5% between 2020 and 2025, from USD 51.8 billion by 2028. According to the report, some of the primary drivers of this rise are FMCG companies' increasing usage of AI for boosting supply chain management, demand forecasting, and targeted marketing. Explain how AI is currently being used in the FMCG industry. Demand Forecasting: AI-powered demand forecasting models can analyze historical sales data, market trends, and other relevant factors to predict future demand accurately. For example, Coca-Cola 02 AI-Driven SupplyChain Management in FMC
According to Intel's CEO Pat Gelsinger, "Data is the new science. Big data holds the answers." He emphasizes the importance of data as a tool for understanding and gaining insights that can be used to drive business success.
The importance of data in today's fast-paced economic world cannot be overstated. Also, to remain competitive, leaders of FMCG companies must have ready access to reliable and up-to-date information. This is where BI software, or business intelligence, comes in. The global business intelligence market was valued at $22.26 billion in 2020 and is expected to rise at an 8.7% CAGR between 2021 and 2028, reaching $43.03 billion by 2028. One of the primary factors driving the growth of this market is the increasing demand for real-time operational insights (Jugovic Spajic, 2023).
The great philosopher Aristotle once said, "We are what we repeatedly do. Excellence, then, is not an act, but a habit." This quote perfectly captures the essence of the Just-In-Time (JIT) practice, which emphasizes the importance of consistent and efficient production processes to maximize profits. Unilever is concerned with maintaining an adequate inventory of consumer goods to respond to market developments(Unilever, 2023). JIT reduces holding time and associated expenses in Unilever's inventory operations
"The only way to do great work is to love what you do."- Steve Jobs. In today's highly competitive business landscape, optimizing your operations is crucial to stay ahead of the game. Did you know that 80% of businesses fail within the first 18 months?(Wagner, 2013). One of the main reasons for this is a lack of operational efficiency. On the other hand, companies that focus on streamlining their operations have achieved remarkable success. For instance, through operational optimization, FMCG giant Procter & Gamble reduced its costs by over $10 billion in just five years (Wohl, 2012).
According to a study by VentureBeat (2022), 76% of consumers would stop doing business with a brand following a data breach. This highlights the importance of effective risk management strategies and the need for FMCG companies to proactively protect their brands. According to a study by IBM, 80% of business data is unstructured and difficult to analyze. This highlights the need for new-age analytics tools to effectively process and analyze large amounts of data to uncover valuable insights and mitigate potential risks.
American business magnate and philanthropist Bill Gates once said: "The most meaningful way to differentiate your company from your competition, the best way to put distance between you and the crowd, is to do an outstanding job with information. How you gather, manage and use information will determine whether you win or lose." Moreover, the global business intelligence market was valued at $27.11 billion in 2022 & is projected to grow from $29.42 billion in 2023 to $54.27 billion by 2030, exhibiting a CAGR of 9.svg.1% during the forecast period (FortuneBusinessInsights, 2022). Besides this, there are numerous bottlenecks of BI in the FMCG industry. Mitigating these issues will lead to an effective use of business intelligence.