The FMCG (Fast-Moving Consumer Goods) industry finds itself in the midst of a massive transformation. Driven by rapidly changing consumer behaviour, influenced by various factors such as the way we work and shop, how we consume our meals, Category Killers, and the shift towards greater centralization in trade, the way we communicate and use social media, inflation, and rising interest rates, among others. These changes have led to a significantly increased need for data facts and knowledge) that provides all decision-makers in the company with a deeper and better understanding of issues and opportunities.
For FMCG companies, not only is the volume of available data sources increasing, but the pace of these changes has also become more frequent. When companies strive to prioritize a data-driven approach, the need for data quality and simple solutions for a broader user base becomes even more important. To keep up with these changes, it is now more crucial than ever for companies to adapt and refine their data strategies to remain competitive.
Many Data Sources, but Only “One Report”
FMCG companies and their organizations now require that all available data sources can be merged to form a single source of business knowledge and understanding. This changed demand significantly impacts how data sources need to be structured and utilized. The trend towards more flexible data models that allow for real-time aggregations, combined with an understanding of the difference between working with dynamic and static data sources, is gaining traction.
Guidelines for Data Management to Ensure “One Report”
Managing a multitude of data sources and datasets with unique structures is no easy task. The temptation to simply avoid using certain relevant data sources to evade the challenge is enticing for many. Companies that do not invest in using the most suitable data risk making incorrect decisions, potentially too late, and, in the worst case, losing market position and competitive strength.
To navigate this complexity more effectively, we recommend the following
principles:
Democratize Your Data: Create “One Report” and maximize the return on data by making data accessible at all levels of the organization, from top management to operations. Ensure that data coherence supports both short-term, medium-term, and long-term perspectives related to sales, marketing, product development, sustainability, and more.
This will:
- Make your strategies better and more competitive.
- Make your tactics even more effective and profitable.
- Make your operations much more focused and efficient.
Future-Proof Design: In an era of constant change, future-proofing is no longer optional; it is essential. The data you need and the licenses you have are bound to evolve as your business grows. Your Data Management Platform (DMP) should be designed to adapt dynamically and scalable, so you don’t have to start from scratch continually.
To avoid getting lost in the “data jungle,” it is crucial to have a solution that can handle both dynamic and more static data without losing control and insight into meaningful changes concerning your strategic and tactical plans and goals.
Knowledge Equals Competitiveness: Recognize the unique nature of each data source and the issues and opportunities associated with them. Invest time in finding the right external partner and ensure internal learning and training. With the right expertise, both internally and externally, your One Report journey will yield better results more quickly.
Optimize Time and Decision-Making: Managing numerous data sources can be a time-consuming and daunting task. Don’t use key personnel’s time on tasks that can be automated using IT tools. Partnering with experts will simplify the complexity of managing and harnessing your data day by day, month by month, while leveraging the wealth of your data and ensuring its quality and timeliness in use.
Master Data: All IT use in the FMCG world begins and ends with master data. It is crucial for FMCG companies to have control over their master data. We recommend ensuring that product master data can be easily integrated across your data sources, and GS1’s (Validoo and others) data pool could be a relevant element in this regard. If your product master data in GS1 is continuously maintained and enriched with all the attributes supported by the GS1 trade item schema, it could become the focal point of your analyses, ensuring consistent product segmentation across data sources. A quick win is to have clear management focus when it comes to naming conventions and “tags,” so all SKUs are enriched with all relevant labels and product information.
CatMan Solution Can Help You Achieve a Stronger Position
We can assist you in getting started with “One Report.” With over 20 years of experience in establishing best practice BI solutions for over 100 of the largest FMCG companies in the Nordic region, our unique combination of FMCG and Microsoft
Power BI experts at the highest level ensures our clients relevant, user-friendly BI solutions that enhance their competitiveness in the market. Our goal is always to enable our clients to make better decisions faster.