Fast-moving consumer goods (FMCG) supply chain companies must aim to collect granular data – detailed, accurate data – to improve productivity and reduce costs in the sector, says information technology logistics solutions company MACmobile commercial director Andrew Dawson.

FMCG supply chain information enables retailers, distributors and manufacturers to accurately quantify metrics, such as rate of sale across product lines, and stock availability in stock rooms and distribution centres, as well as forecasting demand and just in time production.

Most retailers make their data available to supply chain partners, and additional data can be sourced, including from various industry and government organisations and supply chain partners, he highlights.

“Analysing the Big Data of the FMCG retail industry through smart backend systems enables companies to align their operations with the forecast needs of clients and consumers. Better availability of retail information and trends enables the whole supply chain to respond more quickly and accurately to demand signals.”

Just-in-time manufacturing focuses on minimising waste in production processes and reducing stockholding, which improve efficiencies, says Dawson.

However, companies require infrastructure that is sophisticated enough to process terabytes of data every day. This will enable them to understand historical and transient retail sales trends, forecast expected demand and monitor stock levels to align manufacturing, distribution and the broader value chains with what is being sold, he adds.

“Visibility of retail supply chain partners can also influence pricing agreements. Time-on-shelf and knowing how fast their products sell and how much stock of its products a retailer or distributor holds are critical metrics for any FMCG manufacturer. “These types of information help to improve the productivity of retail supply chains by allowing for manufacturing and distribution to be optimised, and ensuring that a retailer is never out of stock.”

Having line of sight and an understanding of what is happening in the retail space allow FMCG companies to quantify rates of sale across different product lines.

Simple visibility of supply chains and clarity of information, the latter of which is improved by having timely, granular data, enable companies to improve their operations, he says.

Additionally, as supply chains and retail stores deploy more technologies and retail sales trends evolve, manufacturers can align their software more closely with retailers to provide direct promotional materials and offers for consumers.

“Interacting with consumers directly requires that companies have visibility, at the very least, over stock levels in that retail outlet. Such direct engagement across all retail stores is enabled by Big Data analytics systems.”

Further, advanced analytics can also process circumstantial and transient data, such as weather information and social media trends, which can influence the likelihood of a manufacturer’s goods being bought.