How DiscoveryIoT’s solution can benefit the CPG industry
Bringing together the Internet of Things (IoT), the Blockchain, Artificial Intelligence (AI) and Edge Computing, DiscoveryIoT is building a smart supply chain network that can drive business growth of several industries using its solution. In addition, the incorporation of various technologies and analytics in its solution gives enterprises a much needed digital transformation necessary for adopting business strategies in the increasingly technology-driven global markets. Of the industries, fast moving consumer goods (FMCG) or consumer packaged goods (CPG) industry tops the list of those on which Discovery’s network is poised to make a disruptive impact. CPG consists of low-cost daily products that are sold quickly and have a short shelf life. It is estimated that the CPG sector will grow to $14 trillion in size by 2025 and therefore Discovery’s solution has the potential to impact a trillion dollar market. Despite the size of the CPG sector, the competition is heavy as a result of globalization and it has become extremely difficult for businesses to thrive in this landscape. Hence, in order to stay relevant in the market today, CPG businesses have to address challenges to turn this competitive space into its favour. Following is a short glance into some of these challenges with insights into how Discovery addresses them by what it has to offer:
Digitalization refers to the adoption of digital technologies into businesses and every other sphere of life. Undoubtedly, digitalization has improved business operations and has increased revenue opportunities for companies. However, there is a lot yet to be done in this space. For instance, CPG industry often faces severe losses as a result of lack of visibility into the inventory levels. These losses are associated with stockouts and stock obsolescence. Although there are solutions like RFID in place, there is still no concrete cost-effective solution in place to access real-time data into stock levels. With Discovery’s solution, brands or companies can affix an IoT tag named ‘Cliot’ that costs as low as $0.10 per tag on items to be tracked. The unique aspect of the tag is that unlike regular trackers, Cliot powers itself with the help of backscattering technology and is compatible with WiFi or Bluetooth protocols by which the data is transmitted to nearby smartphones registered on the network for processing the data, thus, acting like a passive GPS. In addition, it is being developed to house multiple sensors that can detect the temperature and condition of the products it is attached to.
Supply Chain Volatility
Globalization has been a curse as much as it has been a blessing for CPG companies. While it has allowed companies to expand to new geographies and tap into new opportunities, maintaining a supply chain spread across multiple geographies is as hard as it can ever be. The complexities involved are many, ranging from managing multiple players in the network to getting products delivered at the right time in addition to external factors such as regional political crisis, natural disasters, resource shortages etc. While external factors are unavoidable, Discovery’s solution can enable stakeholders to take real-time decisions to minimize the external impact on businesses based on the data insight they receive in the Cloud from Cliot tags. With improved visibility, intermediaries in the channel can also be effectively managed across the entire supply chain.
Data Analytics and Personalization
Crucial to the growth of CPG industries is the accumulation of deep insights into consumers. It is found that the most successful companies use advanced analytics approach to set prices. For CPG companies that deal with a large volume of sales, Big Data Analytics is critical to gather insights. This enables companies to track inventory levels and optimize them according to the requirements. Besides, analytics also provide an avenue for consumer personalization where customized marketing messages are found to have a greater impact that will allow brands to establish customer relationship and thereby brand loyalty. Hence, in this backdrop, Discovery provides a solution that allows companies to gather insights into the data. The data from Cliot tags attached to a product is transmitted to a second layer of the network comprised of a community of smartphones where it is processed. The processed data is further sent to the Cloud using the phone’s data where analytics tools are employed.
To conclude, while CPG industry has a great potential for future growth, as the world progresses into a digital era, the market is unforgiving to those who fail to take leverage of technology that is imperative to business success. With cut-throat competitiveness in this space, much of the challenges that arise for CPG companies are a result of the sluggish adoption of emerging technologies and those who are quick to adapt will emerge as the winners.