Future of supply chain data for consumer goods and retail
Future of supply chain data: Consumer goods and retail
A six month study into the current and future data requirements of the fast moving consumer goods (FMCG) and retail supply chains in Australia and New Zealand.
FMCG and retail supply chains are being impacted by dynamic product ranges, increasing demanding consumers, an onerous regulatory environment, and the adoption of transformative technologies – all in the face of increased competition.
With this as the backdrop the Trading Partner Forum (TPF), in partnership with KPMG, sought to examine and understand the complexity of managing data integrity and alignment between trading partners, with an eye on the current realities and future requirements of data management in the sector.
“Managing data integrity and alignment between trading partners within the industry is not simple. As supply chain becomes more automated, more complex, consumers start demanding more information, alternate routes to market open up, and regulators become more demanding, the importance of trusted data will accelerate.”
Six data challenges for FMCG and Retail
- Product Master Data (PMD): Accurate and aligned PMD is a fundamental enabler of an efficient and safe supply chain.
- Customer (sales, inventory and shopper/consumer) data: Customer data is not yet being used to its full potential to drive business decisions.
- Empowered consumer: Improved supply chain transparency, trust, customisation and agility enables organisations to deliver on customer value levers.
- Government regulation and public responsibilities: Supply chain data is a key enabler to deliver on government policy objectives, and conversely government policy often requires new forms of supply chain data.
- Data Security: 80 percent of Australian CEO’s rate cyber security as a top investment policy.
- Supply chain in a digital world: Technology investments are driving the supply chain evolution from linear responsive flows to interconnected predictive smart networks, where consumers are the core focus.
Within these focus areas the TPF conducted a deep dive into Product Master Data (PMD). The complexity of managing data integrity and alignment between trading partners results in significant inefficiency and risk for retailers and suppliers across operational and cost considerations. This risk will accelerate as the supply chain becomes more automated and complex through advanced distributions centres and new channels to market.
Five key causes of inaccuracy and misalignment of PMD
- The new product introduction (NPI) process often results in misaligned and inaccurate data across the supply chain.
- Product change processes can create data inconsistencies between trading partners.
- The interpretation of data standards can lead to confusion in requirements.
- End-to-end digital traceability – the ability to utilise the electronic records for batch identification for efficient product recalls and withdrawals is critical to efficient food value chains.
- Consumer data expectations continue to evolve and expand – existing standards must continue to keep pace.
It is important to note that despite these challenges the supply chain still operates sufficiently, however the industry could be operating more efficiently. The report exposes opportunities to deliver efficiency improvements through understanding, identifying and prioritising the root causes of misalignment; quantifying the impacts; and developing improvement opportunities.
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