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What retailers and FMCG companies should consider in a post-pandemic world –

Given the pervasive problems with raw material availability, companies need to rethink their stockholding policies and assess whether the ‘just in time’ methodology is appropriate for a post-pandemic world. For FMCG companies, where the loss of P&L has a greater impact on sales loss than over-stocking costs, minimum and maximum stock levels need to be reassessed.

This applies to retailers as well. Until 10-15 years ago, retailers were focused on minimizing stock in their stores because predictable consumer sales were based on historical sales patterns. However, with social media and news influencing consumer purchasing decisions as well as various weather patterns due to climate change and other events, consumer sales are now becoming more complex to predict using traditional judgments.

In this case, there is a risk that FMCG companies and retailers will not hold enough stocks, leading to a loss of sales and a loss of consumer confidence when they come to empty shelves. To avoid this issue, companies need to adopt data-driven solutions that consider a range of variables to predict sales behavior, making the decision-making process from a company perspective much more precise.

“Both FMCG companies and retailers can use artificial intelligence and machine learning to process large amounts of detailed data to predict consumer demand within 5% – 10% of actual sales. It ensures that stock levels are optimal at the retailer level, and stock write – offs and stock – outs can be avoided “, says Veena Giridhar Gopal, co – founder of salesBeat, an AI – driven sales information platform that eliminates stocks in supermarkets, in convenience stores and in wholesale.

SalesBeat’s algorithm replicates consumer behavior based on multiple indicators; including, but not limited to, information on air pollution levels, weather conditions, water levels, consumer movements, current affairs, and common trends. The company is no surprise one of the top 5 FMCG start – ups to watch in 2022 by StartUS Insights.

What retailers and FMCG companies should consider in a post-pandemic world –

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