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Addressing the Challenges of Competing in a Data-driven World

Addressing the Challenges of Competing in a Data-driven World

The need for data and analytics has only become more intense in the last year. CPG brands are investing substantially in building analytics capabilities for their teams and channel partners. This need, along with leaps in computational capacity and algorithms, fuels a greater number of business disruptions in shorter periods of time.

Still, most CPG companies can tap into only a minuscule value of their data potential. For the most part, it is due to organisational challenges. They grapple with incorporating the insights into their day-to-day operations. They have difficulties hiring and retaining data scientists and sales personnel who have data savviness with functional expertise.

The disruptions caused by the pandemic have already catalysed the digital transformation of CPG companies. Its impact is seen in operational improvements and the surge in newer business models. The result is that the competitive landscape has changed entirely in the CPG ecosystem.

Data and analytics have begun to play a critical role and are key assets for brands. Companies are accruing data from all supply chain touchpoints, including retail outlets through phones, web interfaces, and intelligent solutions. The ones who will benefit the most from this data revolution are brands that can aggregate data in unique ways.

Data and analytics are at the heart of the several disruptions of the last year. Newer algorithms are crunching data to help consumers find their favourite brand’s nearest store. It’s enabling distributors to stock the right product in the right quantities for the right location and time. Brands are using hyper-segmented data to recreate their product portfolio and target neighbourhoods with the highest demand. Such data integration capabilities are cutting across teams and departments to enable new insights for the brand, salespeople, distributors and retailers. It’s enabling the entire ecosystem to make more fact-based decision making.ƒƒ
Advances in machine learning and artificial intelligence enable brands to offer best-in-class customer service to their distributors and retailers, optimise routes and logistics, analyse market reports and more. It has led to better management of their resources and higher levels of productivity within the organisation.

Data and analytics are revolutionising the CPG industry, and the impact will be deeper with increased adoption. Advances in AI and ML will ensure continuous waves of change where brands will rely more on intelligently learning machines to solve market problems. CPG organisations that can harness such data and analytics capabilities will create significant value and become market leaders.

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