"When we speak with consumer goods companies, the growth in data volume and velocity is not lost on them, they get it. The challenge that they articulate to us is how to ensure that the analytics capabilities keep up."
This, according to IDC program vice president, Supply Chain, Simon Ellis speaking to Consumer Goods Technology about the recent IDC Manufacturing Insights report, "Business Strategy: Digital Transformation in Consumer Products — Sales and Marketing."
As data continues to grow, companies might feel as if they are utilizing it effectively, when in truth, they are merely moving and reorganizing it aimlessly in hopes of stumbling upon valuable insights. However, new forms of analytics solutions help to make sure that companies are truly and effectively utilizing their data to influence action and achieve the best results.
CGT shares the IDC study’s findings that, “Approximately 53 percent of the consumer goods companies polled are getting at least half of their downstream data in real or near real time; another 30 percent are getting somewhere between a quarter and a half. Only 17 percent are getting below 25 percent (or none).”
Despite the fact that more companies are receiving real-time, or close to real-time, data, the fact remains that neglecting to optimize that real-time data yields no quantifiable results. On the other hand, having the analytics solution that can quickly harmonize and assess your data nearly as fast as it comes in, will lead to quantifiable results and more informed future decisions.
"As data continues to grow, companies might feel as if they are utilizing it effectively, when in truth, they are merely moving and reorganizing it aimlesslyin hopes of stumbling upon valuable insights."
Think of it this way, you need a pot, a chef and the right ingredients to make a good soup. Any skewing of that and you won’t know what to expect; there’s a good chance you’ll get something different than what you wanted.
Similarly, you can have all the necessary data to yield quantifiable results, but lacking the corresponding predictive analytics component means that you won’t be able to turn insight into action. Thus, the addition of a best in class trade promotion optimization solution to your organization will accomplish three critical steps to maximizing the return on your trade spend:
1) Data Harmonization - Combining all pertinent existing disparate data silos and getting them in one real-time optimization database.
2) Accurate Post-Event Analysis (PEA) - Providing accurate baselines and lift coefficients with data anomaly correction capability to analyze all pertinent KPI’s in real-time by Customer/PPG/SKU.
3)Accurate Future Planning - Utilizing the power of constraint based modeling to develop optimal annual customer plans. This component lends itself to a CPG manufacturer separating themselves from their competition in the growing area of Joint Business Planning with your retail trading partners.
"Having the analytics solution that can quickly harmonize and assess your data
nearly as fast as it comes in, will lead to quantifiable results
and more informed future decisions."
So it’s not simply a matter of having data. Rather, it’s a matter of having the right tools at your disposal to be able to aggregate and assess that data at a speed that allows you to proactively address future performance concerns. Real-time data continues to be increasingly more accessible, but it remains to be seen whether manufacturers will prioritize analytics initiatives that organize, analyze and apply it effectively contribute to mutual sustaining growth for both the manufacturer and retailer. (See Can analytics map a clear path for CPG growth?)
What to read next: How to Turn Your Data Pain into Analytics Gain