BI Challenges for the FMCG Industry

Big DataTimes are always challenging for Fast Moving Consumer Goods (FMCG) and Consumer Packaged Goods (CPG) companies. Not only the industry has to deal with a slow economic recovery, companies also find themselves dealing with long-running shifts in the dynamics of the industry – retail consolidation, increased private label competition, and reduced brand loyalty, just to name a few.

Today’s global competition adds a complex component to FMCG/CPG market with increased consolidation and competition in trade, new growth opportunities and sales channels, and critical necessity for efficient supply chain and cost optimization.

Added to the change in industry dynamics, FMCG/CPG companies are also dealing with rising consumer expectations of increasingly customized product offerings delivered through an increasing number of channels.

Such organizations face constant challenge of juggling expanding product portfolios, managing multifaceted supply chain with distinct service requirements and ensuring compliance with strict regulations and reporting requirements. This industry is reliant on accurate, timely market research, effective, targeted marketing campaigns and an efficient distribution network and sales force to execute the enterprise strategy and achieve targets and plans.

Business and Information Access Challenges for FMCG / CPG

  • Optimizing spend
    is difficult to achieve due to multiple ERP instances, which do not allow consolidation of supplier and sourcing knowledge to target quality suppliers and identify problem sources for tainted products

  • Rapid new product innovation
    is essential to win over consumers. Nothing lifts revenues like a new product or the extension of a successful existing product line, but organizations are hampered by the inability to analyze ad hoc market groups and consumer feedback to identify new product, market, and pricing opportunities

  • Improving sales and marketing effectiveness
    as the rate of new store openings and growth in shelf space has peaked. Acquiring a complete perspective of marketing programs and go–to–market opportunities is required to enhance placement and promotion decisions is essential & avoid decline in effectiveness of advertising

  • Integration of various data sources
    Did the recent Ad campaign result in higher average shopper purchase from the retail shelves? Such insights can be obtained only with integrated data sources

  • Evaluation of various scenarios
    while decision making is tedious. Assessment of various scenarios is needed to decide on a particular action to be taken by an operational manager. For e.g., if brand manager changes amount of money spent on advertisements, what would be the impact on sales? To help the brand manager here, advanced analytics comes into picture

  • Every user has a set of favorite reports
    Most of the transactional applications (ERP/SCM) have a standard set of reports which are not sufficient. Customization would require programming / approaching the application vendor

  • Decision making across enterprise is based on individual judgments
    At present decisions taken for any issue that arises in the enterprises is completely dependent on various individual judgments based on gut-feel or understanding that individual receives. What organizations need is guided decision making or uniform decision making for each problem based on the organization’s expectation, and not decisions based on individuals’ expectations

  • Supply chain visibility
    Organizations are discovering that high product volume sales come at the expense of extreme data complexity. Meanwhile, they struggle to maintain open lines of communication with their retail customers and distributors in order to manage the upstream flow of product. These issues are not specific to the IT department: line-of-business managers in marketing, sales, manufacturing, and procurement, among others, must derive tangible business value from this quagmire of data and generate a healthy flow of information throughout the value chain

Why Business Intelligence (BI)?

In the face of all the complexities mentioned above, business users across the enterprise need better tools to plan, manage, measure, and improve strategic, financial, and operational performance.

Business Intelligence (BI) comes to the rescue of such organizations to compete in this environment, and deliver quality and value with every shipment and for every customer. As with every industry vertical, there is some uniqueness to FMCG/CPG market. BI can have a very positive impact on organizations in these industries.

FMCG/CPG organizations confront the above challenges gravitate towards BI to create better visibility, drive performance and deliver product more efficiently. Companies should deliver BI to business managers so as to better manage fluctuating product demand.

BI for FMCG/CPG is a critical enabler and the ‘brain' behind the automated decisions, which allows business users to quickly evaluate exceptions and execute the remaining process activities through process intelligence, limiting human involvement to exceptions which includes Revenue Optimization, Direct Marketing Campaigns and Automated Replenishment.

BI helps develop new ways to become more consumer-driven to stay ahead in the competition, while further establishing a foundation for profitable growth.

BI supports organization growth, ensures success of the FMCG/CPG companies, and simplifies the process of managing competitive strategy, supply chain, product distribution and other critical business factors.

Business Insights and Analysis for FMCG / CPG

Executive Analysis
Sales Order Performance Analysis
Product Performance Analysis
Region Wise Analysis
Sales office Performance Analysis

Financial Analytics for greater ROCE

Working Capital Optimization (C2C Cycle) (Debtor/ Payables Analytics, Inventory Optimization), Treasury Cash Analysis.

Customer Analytics

Trade Promotion Analytics, Outlet performance, Channel Analysis, Integrated Consumer Demand & market performance visibility.

Supply Chain Analytics

Supply Chain Performance Management, Product Cost & profitability analysis, Operational Planning efficiency Inventory visibility & optimization, Supply Network efficiency, Spend Analytics

Operations Analytics

Plant Performance Management, MES Analytics, Financial and Operational Performance Analysis, allows the meeting of goals and tracks progress, using information integrated from numerous enterprise systems and sources. Users can monitor financial health of organisation and create and share reports to comply with government and industry regulations.

Profitability Analysis

Helps users to evaluate the competition, the market, analyse risk trends and forecast profitability with dependable data.

Sales and Marketing Analysis

BI provides ample support to establish and manage the results of marketing campaigns, market research, sales results and targets, individual sales performance, regional and product sales performance.

Distribution Channels Analysis

Team can monitor and analyse the efficiency of the distribution network and its impact on customer satisfaction, inventory, sales and other factors.

Divisional Sales Analysis

Empowers the strength of decision makers for forecasting of sales. It visualizes divisional (like namkeen, pasta, sweets, bakery) sales performance analysis, Expense Analysis with extensive power of forecasting. User can forecast quantizes of divisions by using what-if Analysis on Sales, which is very useful for production planning. It also shows Divisional quarter wise region wise profitability analysis, sales revenue analysis and quantity sold analysis. User is getting all the related and useful information at single screen with details analysis.

Material Consumption Analysis

Enhances the power of decision making of business users. Users are getting all the information related to material consumption at one place on just one single click. He can view top 5 selling materials, Low 5 selling Materials, Low 5 selling Materials Mix and top 3 profitable materials for all sales channel distribution as well as for different sales channel distribution(Channel sales, Direct sales, Agent consigned Sales, Inter Company Sales Institutional Sales). It also visualizes three fast moving products with comparison of last year sales revenue, Which is very useful for business users to predict the product performance according to demand.

Product Order vs. Delivery

Information contains Order placed by customers vs. Delivery information with trends, Alerts and comparative analysis. This Analytics contains three parts. First part having month wise comparative analysis with detail drill down information for delivery done(%) and average delivery time with alerts and benchmark. Second part contains top customers Information with order placed analysis and Trend Analysis. Last part visualizes the monthly public vs. private Order placed with variance analysis. So users are getting all the information on single analytics with interactive and Graphical View, which empowers the strength of decision makers to take better decisions very quickly and with 100% accuracy.

Beneficiaries of BI

Who inside the FMCG/CPG organization would benefit from such a solution? Obvious choice would be Marketing, Brand Management and Sales functions which need external data sources for their operations. There are other functions which would be majorly impacted by these solutions like Research and Development (R&D) and Warehousing and Procurement, to name a few. But historically, Marketing, Brand Management and so on have been the least automated, hence there might not be much understanding and appreciation among the managers of these functions for enterprise wide data integration BI Platform. So it's the CIO who has to shoulder the responsibility of championing such a solution. The solution benefits the CIO by enhancing value of IT in the eyes of the business. Data Integration of various disparate sources may well be last frontier that IT has to conquer inside the CPG Organization.

Various roles within FMCG/CPG and their information interest:

Marketing and Sales VP

Interested in cross–selling, up–selling, improving customer intelligence and sale, campaign and promotion performance.

Category Manager/Brand Manager:

Interested in the specific details about brands and categories of products. Responsible for increasing the sales around a category/brand of product. Also seek information about shelf placement/optimization and promotions.


Interested in integration, total cost of ownership, ability to execute, ease of use, ability to meet the demands of the business. Should be interested in how to achieve the results the other business leaders are interested in.


Interested in accurate analysis of profitability. Profitability by brand, category, customer, product. Interested in time to value and increasing margins.

VP of Supply Chain

Interested in the deep analysis of inventory turns, supply chain effectiveness, vendor quality and performance, overall decreasing every penny from the supply chain.

BI can answer to the following questions business users at FMCG/CPG companies are asking?

Who are my most profitable customers?
How can I optimize my pricing structure?
How can I analyze inventory turns to improve sales?
How can I predict customer buying patterns?
How can I improve the data quality of my customer information and therefore reduce costs and improve customer value?
How can I analyze the effectiveness of my promotions?
How can I improve the efficiency of my supply chain?

BI can provide deep analysis and answers to these questions and more. This allows or organizations to make informed decisions about the business in order to improve operations and effectively improve the top and bottom lines.

BI can be a decision–enabling platform for multiple stakeholders who have differing views of the business across the organization.

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