Historical internal data is the driving force in the FMCG industry. This industry and external data have a contentious relationship. While they use (external) data driven insights to craft marketing & category strategies and to develop new products and brands, their use for (external) data in day to day operations and in sales has been less than optimal.
It is the complex nature of how external data impacts the business, which makes it hard to adopt on a day to day basis in the industry. Today, let us look at data driven insights for supply chain and production.
This process happens primarily through regular risk management meetings/updates by the supply/production planning team. These updates/meetings happen on a periodic basis and are reviewed then for impact on the business and for any action that needs to be taken.
However, we are living the perfect storm – a time when climate change, pandemics, access to information and easy cross border travel are all influencing not just what consumers want but what goes into making what consumers want and how they buy/access it.
It is key, now more than ever, that companies in this industry use external data, that monitors supply chain risks, regulatory compliance and sustainable alternatives to current sources, in everyday decisions much like tech companies do, so they can achieve the same agility in business that the tech industry does and the FMCG industry aspires to.