How to improve FMCG operations using AI?

Daten & Wissen / July 9, 2022

Fast Moving Consumer Goods sector plays a significant and vital role in India’s Gross Domestic Product (GDP) and is also the fourth biggest sector in the Indian economy, responsible for generating employment. FMCG sector has daily used products with comparatively high Sales at low prices. FMCG includes eatables, groceries, toiletries, household items, etc. These goods are fast-moving because they have a short life span, either because they have expiry dates or because we consume them quickly.

AI-powered solutions can help a lot in the FMCG supply chain – from automation, by reducing redundancies, improved demand and supply forecasting, faster deliveries with more optimized routes to making decisions, and all of these result in decreased cost of manufacturing.

Sales and Product Forecasting

Sales and demand in the industry are effortlessly and quickly determined by seasons and promotions. Consequently, the FMCG industry brings about many significant transactions that form into very complex big data that isn’t easy to comprehend. Due to these complexities in the entire process, already the challenging process of forecasting becomes even more demanding for the FMCG sector. This is where AI and big data analysis come into the picture.

Machine learning technologies with deep learning frameworks can easily scrutinize large databases by using past data, which is commonly a very long process with traditional forecasting methods. This enables FMCG companies to act quickly and in real-time.

They can examine historical, behavioural, geographic, microeconomic, and even demographic customer data and formulate models to have an accurate estimation of future sales figures. This also enables companies to put their hands into the most demanded products and the accurate consumer segment and work on the less popular goods and start engaging customers through different strategies.

Customer behaviour/sentiment analysis

The study of consumer behaviour can be defined as how individuals make decisions to spend their available resources on consumption-related items. The FMCGs sector is very fluctuating in India, where new trends keep on emerging. A major goal is to satisfy the needs and wants of consumers by understanding their requirements and sentiments. 

Today’s customers are well aware of the product hence it's essential to get aware of them in order to grab the market in this competitive world. Artificial intelligence can act as digital assistance in knowing spontaneously what consumers are talking about a particular product and taking timely actions to improve. The FMCG companies can use the learnings derived with the help of AI to analyze customer feedback and opinions over different websites, allowing the sales team to make better decisions.

Logistics in FMCG

Logistics in simple words refers to the entire actions followed in managing the resources.  Starting from the acquisition of goods, to storage, and transporting them to their final destination. The usage of technology starts right from the onboarding of a truck. The Machine Model is fed with the images of vehicles sent by ‘foot-on-the-field’ and the Machine Intelligence provides all the necessary details of the truck and its owner. A centralized call center backs it up helping the owner with the onboarding. Thereon, it is the technology models combined with a huge number of other varying factors that help demand meet supply.

AI helps to safeguard the goods in the warehouse by using an automated camera system that provides real-time alerts in case of any discrepancy. A product counting system can secure products from internal theft as well as makes manual work easy. Automated systems can help storage by allocating the right space for the product.

AI can also help in the proper utilization of resources by proper monitoring, as so many trucks come empty during their return journey which causes the underutilization of the logistics assets and negatively affects the company's revenue. Companies using the proper demand and supply monitoring can thus sell the extra units which may reduce the inventory costs and increase the generated revenue.


Solving customer queries on time and knowing customers’ and employees’ intent will make the position of the company stronger with respect to its competitors.  Automated smart  AI chatbots in FMCG can help the sales team in building a predicted order based on past orders, confirm the order with the retailer instantly and place the order in the system in no time.

It can answer the customer's questions with the help of data that is stored in them. It can effectively manage huge customer queries. Retail chatbot, suggests the best route to field salespeople when they are on their field where they visit multiple retailers in a day. This optimizes their time and helps them in visiting more retailers in a day resulting in more productivity.

Recommendation system

AI-powered recommendation systems can suggest to salespeople which customers they should target and how to do that effectively. With such a solution, they can reach the right customer with customized and personalized offers, and all this at the appropriate time when the customer needs it. 

The sales team doesn’t have to target customers based on guessing or randomly choosing customers to contact or offers to make. On the other hand, the time-consuming personalized offer preparation is automatically done by an AI-based tool. When you combine an AI-powered recommendation system with good sales skills, you can have more effective deals and prolonged contracts.

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Let's Wrap it Up

The FMCG sector is highly volatile and the trends emerging in it require constant monitoring. In today’s time for the smooth flow of business, it’s essential to update the market’s knowledge with the help of technology. Daten & Wissen provides advanced domain-specific solutions which can effectively help in overcoming the current challenges. Do reach out to us at Daten & Wissen.


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Daten & wissen

Daten & Wissen is the team of expert AI engineers to help your business to embark on a transformational journey with the adoption of this futuristic technology.

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