Posted on : 2022-12-16 02:43:35
Article : Good evening, Friday Management TASK 221- Although there is no one-size-fits-all strategy for technological integration, the future is clear for FMCG and artificial intelligence is not a passing trend.
2019 pandemic served as a wake-up call for the entire businesses about how to leverage technology and use it to stay profitable during a crisis. Many businesses are now experimenting with innovation, reimagining their operations and operational models utilizing emerging technologies. Because of the enforced social distance principles, they are becoming more dynamic, flexible, and responsive. Today’s AI-based customer care systems can learn from a wide range of data sources, including unstructured data, thanks to advances in machine learning. To satisfy and sustain, present day consumer organizations must create delight at every level of the client journey to build loyalty.
The FMCG industry is worth billions of dollars and to compete and grow, there is a constant need to bring more innovations and improvements. It’s no longer just about expansion, instead it’s more and more about surviving in a market where everyone else is doing it. Leveraging AI for FMCG is particularly relevant as there is a large amount of data to process, operations to optimize, and decisions to make. The potential of AI technology in the FMCG sector is enormous, and it is growing rapidly. AI for FMCG helps improve customer experience, gain predictive insights into customer behaviour, and facilitate higher engagement. It also allows for a lot of automation in commercial processes, which can help save money and time.
With so many departments, transactions, and records, running a business without monotonous and repetitive work is impossible. However, if there is a lot of data, there is always room for optimization, which leads to increased revenue and better decision-making. This is where AI for FMCG can add the most value. Autonomous material handling equipment has reduced dependency on human operators and increased efficiency while assuring high operational safety, resulting in zero inventory loss or pilferage, leading to improved productivity. AI for FMCG will gain profitability by 38% and improve productivity by 40% by 2035, according to a report by Accenture.
In the FMCG sector, every inquiry, purchase, service request, and other activity generates a vast amount of data every second. The information gathered will enable FMCG companies to better understand consumer behaviour, AI serves as a powerful and effective data analyst analysing all customer data and providing actionable insights. AI for FMCG applications is being used to obtain a deeper data-driven understanding of their business which leads to better decision-making. In fact, AI is redefining what’s possible for businesses by assisting them in uncovering meaningful insights from data sets, ranging from inventory to customer sentiment. Because of the competition, niche customer creation and micro-targeting are becoming priorities in the FMCG and retail sectors, and AI will play a key role in formulating strategies for FMCG businesses.
In the FMCG and retail industries, product placement is crucial, and choosing the ideal position for a product is one of the most difficult tasks. In order to make the suitable product effective in a store, AI can perform comprehensive data analysis and then suggest to FMCG companies where each product should be displayed, how much stock is left on each product, and what the perfect price should be. It assists businesses in saving time and human resources while also increasing profits. So, AI for FMCG can go well beyond traditional market segmentation.
Although there is no one-size-fits-all strategy for technological integration, the future is clear for FMCG and artificial intelligence is not a passing trend. The way consumer demand varies will reveal a plethora of patterns and correlations. This is a goldmine of important information for FMCG companies that must be examined to uncover tactics that can provide them a competitive advantage. Post your comments with interesting Brand case studies on AI ML utilisation in FMCG sector. We will discuss on few examples of companies those have embraced technology for multiple operational benefits and this will be in our Monday Management solution for this TASK 221 that will be posted on 19th Dec 2022.
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