Application of Business

Intelligence in FMCG Sector

SUBMISSION BY : GROUP -2
SHWETA SETH (2027661)
NIKITA PANNA (2027741)
PREETAM TUPPAD (2028210)
BUSINESS UNDERSTANDING

Fast moving consumer goods (FMCG) , also known as consumer packaged goods(CPG) are the goods that are
sold quickly and at low prices. The term “Fast-moving” indicates that these products will leave the store shelf
quickly. This includes household goods like groceries,beverages candies , cosmetics,packed food ,dry foods
etc.

How does FMCG Work ?

Fmcg works through following levels.

Manufacturer → Wholesaler→Retailers→Consumers
PROBLEM STATEMENT

The FMCG industry is highly competitive and requires keen business insight to stay ahead . Nowadays ,
FMCG is facing a constant challenge of expanding portfolios , ensuring regulatory compliance , reporting
requirements and managing multi faceted supply chain with distant requirements as they heavily relies on
accurate and prompt market research.

The competitors in FMCG adds various components to the market and to compete in such environment there
is a need to adopt Business Intelligence (BI) to win the market share.
KPI OF FMCG

1) OUT OF STOCK RATE (OOS) - measures the ability 2) ON TIME IN FULL DELIVERIES(OTIF) - monitor
to meet customers demand the delivery performance.
3) AVERAGE TIME TO SELL -measures how long 4) CASH-TO-CASH CYCLE - measures time to
it takes to sell the product to wholesaler convert resources into cash
5) SUPPLY CHAIN COST 6) INVENTORY COST 7) SALES PERFORMANCE
CONVERSION OF DATA INTO INFORMATION (DIKW
MODEL)
● Data Sources - KPI based historical data of the company and customer survey response for portfolio
addition.
● Data to information conversion - Visualization ,Dashboards, Graphs ,Data Stories,Reports (Ad hoc and
Periodic report) and data interpretation will leads to conversion of data into information.
● Analysis to be carried out - Prescriptive analysis
● Report generation - Ad hoc and periodic report
● Business Model - Scenario based decision making
● Intelligence application to the business - To solve business challenges and take better decision.
CYCLE OF BUSINESS INTELLIGENCE IN FMCG
BI SOLUTIONS
BI solutions in FMCG are divided into various parts:

ETL

● Used to collate data from different sources

● Extract, Cleanse and Transform data to get useful insights
● Load transformed data in data warehouse

Data WareHouse

● Number of views can be built depending upon the insight of end user’s interest. This is what makes OLAP systems different
from OLTP, where OLAP is targeted to find the collective effect, while OLTP concentrates on transactional details
● Data security in order to protect the data from unauthorized access

Visualization

● Reports, graphs to clearly identify the trends and patterns

● Views specific to user groups and departments with restricted access
APPLICATION OF BI IN FMCG

● Supplier and vendor

association (Supplier)
● Demand and inventory
management
(Manufacturing)
● Distribution and
communication
management (Distribution)
● Forecasting(Customers)
SAMPLE DASHBOARD FOR SUPPLY CHAIN PERFORMANCE MANAGEMENT
SAMPLE DASHBOARD FOR SUPPLY CHAIN WAREHOUSE MANAGEMENT
ADVANTAGES OF BI IN FMCG

● Increasing competition
● Increasing customer expectations
● Retail-FMCG space dynamics
● Impact on strategy and operations
● Increase Flexibility
● Improve customer service
● Greater organizational alignment
● Greater customer focus
 CONCLUSION

Thus , Business Intelligence will exactly show why big data analytics is going to benefit the FMCG
industry. Using a particular tool, company will be make better and reduce overall costs while improve
customer experience. It will also help in providing ongoing BI support and granular BI solutions to help
company for tracking operational efficiencies, control budgets and manage costs in real-time.
TEAM CONTRIBUTION

Shweta Seth Nikita Panna Preetam Tuppad

Identification of Utilization of Business Application of Business

Business Problem Intelligence Concepts Intelligence in FMCG Industry
THANK YOU