Did you know that organizations that effectively utilize data from suppliers, distributors, and retailers have seen decrease in excess inventory and reduction in instances of being out of stock? This has led to increased customer loyalty and satisfaction. Distributors are reporting empty shelves, while retailers claim to be fully stocked. Have you ever considered where the disconnect lies? A prominent FMCG brand is launching a new product line, and the successes of this endeavour rely not only on the quality of the product but also on an understanding of customer preferences, supply chain efficiency, and market trends. In this sector, it is unfortunately not rare to encounter scenarios where fragmented data throughout the supply chain creates blind spots that hinder effective marketing campaigns. What if you could have a comprehensive view of the entire picture? In today's interconnected data-driven landscape, leveraging data from suppliers, distributors, and retailers is crucial for the success of FMCG companies. Without delay, let us delve into the importance of data, addressing pain points, and identifying key performance indicators to unlock its full potential.

Significance of Every Data Point

Supplier Data : The core of every FMCG company rests with its suppliers, who supply the necessary raw materials and components for manufacturing. Supplier data management plays a crucial role in influencing product quality, production timelines, and operational efficiency. By maintaining a database of supplier data, FMCG companies can ensure the quality and compliance of raw materials, which is vital in ensuring product safety and consistency. Utilizing supplier data allows organizations to identify potential risks, monitor supplier performance, and implement measures to uphold high standards. Moreover, it provides insights into the complexities of the supply chain, such as lead times and production capacities. Having accurate and up-to-date information about suppliers enables FMCG companies to optimize their supply chain processes, reduce lead times, and manage inventory effectively.

• SKU management aids in tracking products through the supply chain, assisting retailers in inventory control and sales monitoring.
• Detailed product descriptions provide consumers with information on the product's benefits, features, and intended uses.
• Specifications offer technical details to guide customers in making well-informed purchasing choices.
• Visual assets such as images and videos display the product from various perspectives, enhancing customer comprehension.

Distributors : Distributor data provides valuable insights into the movement of your product, focusing on the supply side rather than the demand side. It primarily tracks your product's journey from the distributor to the retailer, omitting information about its performance at the retail store. Although distributor data does not include sell-through data, it typically includes shipment details such as which retailers received your product and when. Additionally, it often offers inventory information for the distributor's warehouses, allowing you to monitor stock levels at any given time. This data is essential for understanding the distribution landscape of your product, identifying its end destinations, and assessing the quantity of product being delivered to each retailer. Distributor data may not contain specific sell-through information on consumer purchases, but it does offer valuable insights such as shipment details, showing which retailers have received your product and when. Additionally, it often includes inventory data for the distributor's warehouses, allowing you to monitor their stock levels in real time. This data is essential for understanding the distribution dynamics of your product, identifying its destination, and assessing the volume of products being delivered to each retailer.

Retailers : Retailer data offers valuable insights into consumer behaviour by capturing scan data, which includes items purchased at checkout, and sales data, which reflects total sales volume per store. This enables retailers to evaluate product performance, identify top-selling stores and their locations, assess the impact of marketing activities and pricing strategies. Furthermore, retailer data may encompass inventory details, unveiling stock levels at warehouses and individual stores. This data-centric approach empowers retailers to make data-driven decisions, enhance operational efficiency, and propel business expansion.

Frequent Areas of Discomfort

Data analysis in FMCG businesses can be time-consuming due to the extensive daily data generated. Managing multiple data sources further complicates the process, especially for busy FMCG managers with numerous responsibilities. Automation solutions can streamline the manual report-pulling process and extract valuable insights for more informed decision-making.

Specialized skill sets are required for joining, cleaning, and analyzing data in the FMCG industry. Finding professionals with the expertise to navigate complex datasets can be a challenge for many companies, leading to incomplete or inaccurate analyses. Automated tools for cleaning and analyzing retail data can provide easier, faster, and more accurate analysis results.

FMCG businesses are faced with the challenge of managing ever-growing datasets that require analysis, storage, and security. Out-dated technology infrastructure can impede effective data utilization, as legacy systems may lack compatibility and processing power to handle the volume and complexity of modern data sets. To address this issue, brands should upgrade to data warehouses capable of handling increasing data volumes and invest in data processing tools that can efficiently query large amounts of data.

With the expanding data volumes generated by businesses, it is essential for brands to make significant investments in developing and maintaining their data pipelines. Many companies lack the technical expertise and resources needed to construct and manage their data ingestion engines efficiently. As a result, creating a robust data pipeline requires a substantial financial commitment.

Key Performance Indicators for Suppliers, Distributors, and Retailers

After identifying the bottlenecks and mastering ways to readily access your FMCG data, below are the key metrics you should have readily available:

Velocity : Velocity, which measures the number of units sold per store per week, is a crucial metric for brands in the FMCG industry. It serves as a valuable indicator of growth, offering insight into the effectiveness of brand initiatives and helping to pinpoint areas where additional support may be needed. Regularly tracking velocity at the store, brand, and product levels can help to Identify top-performing and underperforming retail locations, determine which product mixes are most successful and where, and evaluate the impact of different promotions on sales performance. An example of this is when a company discovered that a product with slow sales nationwide was actually thriving in the Northeast region. Armed with this information, the company quickly developed a regional product assortment and promotional plan instead of discontinuing the product.

Voids : Voids occur when a product should be available for purchase by customers in a retail setting, but is not accessible for various reasons. These reasons can include the product being off-shelf, out-of-stock, accidentally misplaced by a customer, labeled with the wrong sales tag, or expired/damaged. Identifying and resolving any gaps that may be impacting your sales progress is crucial to maintaining success. These disruptions can undermine the distribution progress you have worked so hard for and ultimately harm your overall sales performance. It is important to pinpoint the root cause of these ongoing sales issues and take swift action by communicating effectively with your distributor, retailer, or broker to address and resolve the situation promptly.

Distribution : Having timely distribution data at your disposal enables you to monitor the whereabouts of your product on a weekly basis. This data can be analyzed based on geographic regions, retailer locations, and other factors. By carefully examining a product's distribution strategy and channels, FMCG brands can identify areas for improving logistics. Additionally, FMCG brands aim to collaborate with knowledgeable suppliers who are adept at managing distribution channels effectively. Through thorough observation of distribution activities, informed decisions can be made regarding future promotions, maintaining optimal shelf stocks, and uncovering opportunities to enhance various metrics like velocity.

Supply Chain : Supply chain data enables businesses to evaluate the effectiveness of moving products from warehouses to distribution centers and retail stores. By utilizing supply chain data, FMCG teams can implement robust supply chain procedures based on accurate data indicators such as inventory levels or out-of-stock rates. These indicators allow for quick decision-making and response strategies when needed. With access to timely data and response protocols, FMCG teams can optimize their forecasting, inventory management, and planning processes, ultimately reducing waste and enhancing cash flow.

Why Choose Nirmalya SCM

In the ever-changing market landscape, FMCG brands must acknowledge the pivotal role of data in achieving success. Despite the challenges associated with data analysis, implementing best practices and utilizing advanced technologies can position brands for sustained growth and competitiveness. Nirmalya SCM offers an integrated end-to-end supply chain solution that promotes seamless collaboration and transparency among suppliers and distributors. By uncovering valuable insights from supplier, distributor, and retailer data, FMCG companies can optimize their supply chain, make informed decisions, and meet the high demands of today's consumers. The future of excellence lies in data-driven strategies that require collaboration, dedication, and a strategic approach to analytics and technology adoption. Automate the process of establishing connections among your customers' engagements using advanced customer service solutions equipped with predictive and intelligent capabilities. Below are some of key benfits enperpises can derive though Nirmalya Ratail & Distribution solution.

• Enhance labor efficiency to increase workforce productivity.
• Streamline and automate warehouse operations by seamless integration.
• Minimize inventory costs for improved financial efficiency.
• Attain precise forecasts to synchronize with demand-oriented results.
• Enhance decision-making for daily replenishment operations.
• Acquire comprehensive visibility across all store inventories.
• Optimize store associate activities to ensure accurate inventory management.
• Enable in-store associates with mobility and flexibility for enhanced performance.
• Highly adaptable and customizable to cater to the ever-evolving retail industry.
• Enhance in-store operations by leveraging real-time data, facilitating customer-focused merchandising strategies, and streamlining your supply chain.

In the ever-evolving industry landscape, organizations that view data as a key strategic asset will position themselves as frontrunners in the competitive FMCG sector. To learn more about how businesses similar to yours are leveraging Nirmalya SCM embedded with BI for success, please reach out to us.