Consumer Goods Technology - August 2017 - 12

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Tech Solutions Guide

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"The trick is to figure out what
in this sea of data is the most
valuable for your organization -
thus, the return to 'small data.'"
- MICHAEL SCOTT, AFS TECHNOLOGIES

Q

The adoption rate
for IoT technology is
ramping up significantly.
What internal and external
data streams (retailer
and/or consumer) will
widespread adoption
facilitate?

SCOTT: IoT technology can provide
near real-time data to monitor a
product from the factory to the store.
Manufacturers can use simple IoT
sensors that monitor equipment
status or even detect an out-of-stock.
Many data points that required a
manual visit can now be gathered
remotely, in milliseconds. Businesses
can be optimized with less time spent
gathering data points and more time
acting on the new data.
An organization might reduce its
fleet of trucks if it had notifications for
when visits were needed instead of
just scheduling weekly visits. Fresher
product and fewer out-of-stocks is
always a good thing! CGs will learn how
to effectively use IoT if they realize that
it is still just a tool to help the business
along with appropriate processes. Ask
yourself, "Out of all the information I
can gather with IoT, which will help my
bottom line the most?"
SPENCER: We are witnessing
a transformational revolution of
conventional brick-and-mortar

12

CGT | AUGUST 2017 | CONSUMERGOODS.COM

retailers being assaulted by the buying
behavior of Generation X, Millennials
and Generation Z. They are purchasing
a larger portion of their day-to-day
consumer products via the internet.
The need for real-time consumer
insights is at a critical juncture if
conventional brick-and-mortar retail
stores are going to survive.
With the onslaught of Amazon's
efforts to carve out substantial market
share, there has never been a more
pressing need for both conventional
retailers and CPG manufacturers to
begin to effectively collaborate using
the extensive consumer behavior
intelligence they both possess. They
need to get all this intelligence in
one real-time database that amounts
to a single version of the truth that

can mutually optimize category,
brand and SKU performance. This is
mandatory if the CPG sector wants
to avoid being reduced to one large
internet supplier and a few specialty
brick-and-mortar retailers.
The good news is that the
ingredients to accomplish this
collaborative planning environment
exist today. The cloud with Amazon
Azure and Rack Space, to name a few,
can handle massive amounts of the
data necessary to optimize an existing
category portfolio. Furthermore,
powerful modeling and artificial
intelligence are available and getting
more powerful with each passing
month. Now all we need to do is
stop talking past each other with
spreadsheet-compiled intelligence
and begin true collaboration that
incorporates consumer insights,
consumer buying behavior, and
accurate planned vs. actual results.

What methods are
Q
proving most effective
in helping CGs turn data
and insights into action?

SCOTT: As emerging technologies
generate tons more data - typically

"There has never been a more
pressing need for retailers
and manufacturers to begin to
effectively collaborate using the
extensive consumer behavior
intelligence they both possess."
- WAYNE SPENCER, T-PRO SOLUTIONS


http://www.CONSUMERGOODS.COM

Table of Contents for the Digital Edition of Consumer Goods Technology - August 2017

Contents
Consumer Goods Technology - August 2017 - Intro
Consumer Goods Technology - August 2017 - Cover1
Consumer Goods Technology - August 2017 - Contents
Consumer Goods Technology - August 2017 - 3
Consumer Goods Technology - August 2017 - 4
Consumer Goods Technology - August 2017 - 5
Consumer Goods Technology - August 2017 - 6
Consumer Goods Technology - August 2017 - 7
Consumer Goods Technology - August 2017 - 8
Consumer Goods Technology - August 2017 - 9
Consumer Goods Technology - August 2017 - 10
Consumer Goods Technology - August 2017 - 11
Consumer Goods Technology - August 2017 - 12
Consumer Goods Technology - August 2017 - 13
Consumer Goods Technology - August 2017 - 14
Consumer Goods Technology - August 2017 - 15
Consumer Goods Technology - August 2017 - 16
Consumer Goods Technology - August 2017 - 17
Consumer Goods Technology - August 2017 - 18
Consumer Goods Technology - August 2017 - 19
Consumer Goods Technology - August 2017 - 20
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