Data Analytics

Companies have to learn to find a competitive edge in data analytics in an FMCG environment, which is intensely competitive and where consumer preferences tend to change fast. However, in such a journey toward the data analytics transformation of a global FMCG company, new challenges await, which may be daunting but open windows to valuable insights and enhanced operational efficiencies-to better satisfy customer demands. The process requires the best appropriate technology, combined with strategic thinking and careful planning, for success in data management along a very robust organizational approach. For more details visit site

Data integration is, in fact the first challenge one has to face while undergoing any transformation related to data analytics, in particular within a global FMCG company.

Companies operating within the FMCG sector are usually present in a large number of countries, offering an enormous variety of products, markets, and partners. This results in a data siloed across regions, business units, and systems. Data from disparate locations-varying from ERP systems to legacy databases to external thirdparty suppliers-prohibits a single point of view of the business. Data analytics remains power-less without seamless integration across systems. That requires investment in modern data integration platforms and associated technologies that can bring together disparate sources of data, making it consistent and accessible companywide. At this point, data lakes and cloud-based solutions will be a first-class way to dissolve silos, allowing a comprehensive view of data. Once integration is set up, data quality and governance come next as major hurdles.

Data accuracy and consistency can significantly affect a global FMCG company. Inaccurate data, whether partially or fully input, may cause proper decision-making, which ranges from a part in the supply chain to marketing strategies. Thus, data governance must be implemented to ensure consistency, reliability, and adherence to regulation of data. There should be rules for data entry, validation, and maintenance by all departments and geographies. It also demands a data governance framework that would set out ownership of data, specify responsibilities and accountabilities for data, and stewardship of high-quality data through empowered data stewards. Another crucial challenge that usually features in the journey of a global FMCG company in analytics is the scaling of analytics capabilities.

FMCG companies grow, and so do the quantities of data generated end. What with such large and diverse sources of data, analytics tools and techniques have to be scaled up. Traditional analytics solutions, which may have worked thus far, are simply unable to cope with the sheer volume, velocity, and variety of data that global companies generate in these times. Advanced analytics tools, such as artificial intelligence (AI), machine learning (ML), and predictive analytics, are invaluable in such situations. Utilizing such tools allows companies to process vast amounts of data in real time, generate predictive insights, and optimize decision making across the entire supply chain. However, there is also a critical human element at stake-the gap between the required expertise in data analytics and available talent.

Though data has finally become readily abundant, many FMCG companies worldwide are constrained by gaps in the level of talent required to transform such vast volumes of data into actual insights. While demand for data scientists, analysts, and AI specialists keeps increasing, the supply side is not increasing correspondingly. In such a scenario, companies need to invest in upskilling the existing workforce or even collaborating with external partners to bridge this gap. By developing a ‘data-literacy’ culture within an organization, starting from senior management to operationally managed teams, the FMCG companies could establish data analytics as the DNA of the company rather than an IT function. One of the major challenges in the data analytics journey of a global FMCG company, even if strong integration, governance, and talent are in place, is how to ensure that insights relate and are actionable.

 Data analytics can generate reams and reams of information, but it remains an underleveraged asset unless a clear connection with business objectives can be established. For instance, purchasing or consumption patterns of a consumer can be a great source of insight toward inventory management, pricing strategies, or marketing efforts only when correctly presented to the respective decision-making entities. Otherwise, an aggregation dashboard may not render actionable recommendations unless it is designed to demonstrate overall trends, anomalies, or opportunities that directly link to the company’s strategic goals. This is essentially the translation of data into an outcome. The last but not least point is that change management is a critical aspect of any transformation toward a global FMCG company.

The introduction of new analytics tools and methodologies often requires changes in the traditional ways of work associated with the employee. The employees will oppose new technologies or methodologies, especially as they are used to the traditional ways of implementing decisions. Change in such a case can be overcome by implementing a comprehensive approach in change management through employee communication, training programs, and on-the-job support as they adapt to new data-driven workflows. Therefore, building a culture that relies on data as a critical asset to be made in decision-making forms the essence of any data analytics project for its success in the long term. Challenges notwithstanding, the benefits of data analytics transformation to a global FMCG company are tremendous.

Bottom line benefits to the company basis improved customer engagement, operational efficiency, management of inventories, and profitability can only be ensured through effective leveraging of data. The right mix of technology, processes, and people will unlock all the potential hidden in FMCG business data-a strategic advantage in a highly competitive market. Mastering data analytics is a complex journey, but for those ready to invest in overcoming these challenges, the payback is substantial: business growth and staying ahead in the marketplace.