The Christmas dates bring the FMCG sector upside down. Streets, e-commerce stores and shopping centers full of buyers looking for the last gift for their loved ones. Nerves are on the surface so that everything goes as well as possible and that no one finds their empty hole at the foot of the tree. But once the furor of these days has passed, what is it that worries FMCG during the rest of the year?
The most important indicators for Mass Consumption
Performance indicators, or KPIs in its acronym in English, are one of the basic tools of business management. That is why they are a good reflection of the interests and concerns of the companies. Miebach Consulting and GS1 have surveyed 360 sector executives this year and have evaluated which indicators seem most relevant to them. As we will see, all of them can be related to the work that logistics provides to FMCG.
Customer service is by far the winner. 73% of the executives rated the expectations of taking advantage of this section as good or very good. The report underscores how customer service has relegated what was once the king of the ranking to second place: cost pressure (67% good or very good use).
There is no company that can work -or survive- turning its back on its costs. However, these data seem to indicate that more and more are prioritizing good service over a purely cost-oriented approach.
Transparency in the supply chain
The podium closes with transparency in the supply chain (65%), further proof of the close relationship between FMCG and logistics. Transparency allows companies to better control and respond to demand, work more efficiently with products with an expiration date, better monitor their costs, anticipate potential problems, etc.
The technological challenge and adaptation to the present
Among the KPIs there are two aspects that stand out clearly: those related to new forms of consumption and those that have to do with the constant penetration of new technologies. Among the former are the omnichannel distribution strategy, individualization, demand fluctuations and product personalization, and “changes in consumer behavior.” We acquire more personalized products, during shorter cycles, with greater accruals from promotions and through a greater number of channels. If people buy in a different way, a FMCG company cannot be left out of this change.
Among the technological advances that make their way without asking for permission, it is worth mentioning: the digitization of business processes, automation or decentralization. As with the rest of the sections, these are clearly aspects that can be reproduced in the relationship between FMCG and logistics. In addition, logistics can act as both a facilitator and a brake in this process. For example, it will be very difficult for a FMCG company to really go digital if its logistics provider cannot accompany it along the way.