Digitalization and innovation within organisations is a contemporary issue seen across industries globally – with Consumer Goods leading the way.
In an age where you’re able to buy practically everything you’d ever need from your smartphone, it’s almost becoming uncommon to choose shopping at your local shopping center over browsing from the comfort of your own home. Especially when digital shopping offers incentives such as discounts, freebies and shopping to be delivered to your doorstep within 24 hours of purchasing.
While companies continue to focus on improving their brand awareness and product/service availability in the growing Digital Marketing and E-Commerce sectors, CPG leaders also consider how this can be applied across all areas of Operations and Finance – with clear risks posed to companies who cannot adapt to and embrace the fast-changing digital consumer.
At Concilium we have spent the last 3 months working with a range of leading organizations in applying Data and Digital Transformations within their manufacturing departments. Whilst Lean transformations (systematic methods of reducing waste in manufacturing processes without reducing productivity) can revolutionize a production line, it appears that Digital Solutions will take production to the next level. Firms without standard processes in Data Collection, for example, often lack a benchmark in operating standards meaning that Supervisors could be unaware as to the specific quantity of goods being produced ahead of shipping.
However, by incorporating Lean operations, performance tracking and operation capabilities, supervisors can detect performance gaps and improve overall production efficiency. In fact, a recent Mckinsey report outlined that applying Predictive Maintenance (Use of data techniques to predict when maintenance should be performed) in this way can both decrease maintenance costs by 10-40% and increase quality by 90%. It also stresses how this could be a defining factor in competitivity.
Similarly, E-Commerce will continue to play a crucial role in the future success of FMCG organizations. It is predicted that by 2019, the online channel will account for over 10% of total sales across all categories, generating $4 trillion globally across all categories within the segment. The Grocery channel is a prime example of this; 23% of US Consumers buy groceries online but this is predicted to more than triple over the next 10 years – subsequently creating a substantial need for digital talent.
Traditional Brick & Mortar retailers have also embraced this and have transformed their business model to a ‘Click & Mortar’ approach in which they leverage their high street presence with a fast-growing Omni-channel area, meeting customer needs and providing greater accessibility. The recent news of US supermarket giant, Kroger and online based supermarket, Ocado, is a great example of how contemporary retailers plan to adapt to a fast-developing consumer.
However, to execute a shift in strategy such as this, requires having the right people place. In the UK alone, the growth rate of employment in the digital area is almost double that of non-digital workers – across all industries and categories. At Concilium we have a dedicated and specialist team of Consultants that are constantly in contact with digital professionals across all functional areas, allowing us to anticipate and react to our client’s contemporary needs. Having such an expansive global network means that we can provide top-percentile candidates imminently, regardless of how niche a search may be.
If you would be interested in considering and discussing how we can add value to your business and help you get ahead of your competitors, get in touch!
By Christopher Gossett
About Christopher Gossett: Consultant, Christopher, works exclusively within the FMCG industry
Please feel free to reach out at: Christopher.email@example.com or LinkedIn.