The FMCG industry is going through turbulent changes, such as inflation and altered post-COVID consumer behavior. And it’s crucial to keep track of those changes and navigate them with expertise. The Promotion Optimization Institute (POI) is a research-based organization focusing on FMCG that helps companies get on the path of digital transformation.
Every year POI publishes the State of the Industry Report, showing how FMCG companies must make their processes flexible and real-time to achieve the next level of effectiveness. As a result, companies will be able to bring more automation into their work, make their decisions AI-driven, and establish a single digital ecosystem for the entire organization.
This year the POI’s report uncovered several strategical ways to effective digital transformation. Let’s dive into them.
Teams within one company often have several systems for one business process. However, when those systems are united into one, it will create one version of the truth and facilitate the work for every team member.
If the company uses an end-to-end ecosystem, teams receive connected workflow, organized planning, efficient task completion, and, as a result, achieve better results.
AI is disrupting the FMCG industry. It enables a direct connection between businesses and their customers, improves workflow, helps to understand customer behavior, manages the supply chain, ensures effective promos, etc. Today many global FMCG players use AI to boost intelligent experiences for their consumers. Using AI and ML must be an integral part of the strategy.
And while all the companies want to adopt AI, not all succeed. One of the major challenges for adding AI to your work processes is accurate, clean, and harmonized data.
20%* of all manufacturers currently don’t have any data management processes, while 64%* of the companies continue to have data challenges with foundational data. Yet, data access, cleanliness, and harmonization are the key to analytics, Holistic Enterprise reporting, executive dashboards, revenue growth management, TPO, and AI. Digital transformation of an FMCG company is impossible without data management since accurate data enables process automation.
RGM transforms episodic planning into dynamic one based on advanced analytics. RGM practice includes trade spend, portfolio and pricing optimization.
RGM leverages central management of the organization, working closely with marketing, finance, supply chain and sales to develop and implement strategies for growth, savings and profitability to achieve a balance between goals and needs across the organization.
TPx is a subset of emerging RGM initiatives. Promo management and optimization are directly connected with revenue growth and profit margin. Effective promo management lies in predicting how your promo can attract more revenues and competent execution of promo plans.
69%* of companies are struggling with how to manage modern trade. The omnichannel approach is the modern solution to connect consumers across different sales channels and improve the consumer shopping experience. It offers the linkage between digital and traditional trade as well as the integration of consumer and loyalty shopper data.
The annual State of Industry report is based on the fundamental survey of Consumer Goods Enterprises, their challenges, plans, and best practices in the area of sales digital transformation. And now the Promotion Optimization Institute is kicking off the next survey focused on Enterprise Planning and Retail Execution!
Please invest your 15 minutes to complete the 2022 State of the Industry Enterprise Planning and Retail Execution Survey through the link https://lnkd.in/eWhb4-5j for the sake of industry growth and strategic insights exchange. Once you complete the survey, you’ll receive the full POI report as a “thank you”.
*Source: POI 2022 Enterprise Planning Vendor Panorama