How AI is Transforming the FMCG Industry?

How AI is Transforming the FMCG Industry?

How AI is Transforming the FMCG Industry?

How AI is Transforming the FMCG Industry? 500 400 Alisha Fernandes

Artificial intelligence (AI) is an emergent branch of computer science concerned with automating tasks that would typically require human intervention. This replication or simulation of human intelligence in machines helps eliminate the need for humans to do excessive monotonous tasks, thereby allowing them to focus on the more relevant. It also helps in future analysis and predictions that would have otherwise been difficult, if not inaccurate when performed by humans instead. 

Our solutions expertise is in the field of Data Science, Machine Learning, Natural Language Processing, Deep Learning, and Computer Vision. The aforementioned are some of the trending AI use cases that we have implemented for various FMCG industries.

Use of AI in the FMCG Industry/CPG

Sales Forecasting

By predicting customer purchases, the business gets an idea about the sales going to take place in the near future so that production can be planned accordingly. Accurate sales forecasts enable you to make informed business decisions and predict short-term and long-term performance. In case of a negative prediction, the necessary preventive measures can be taken.

Customer Behavior Analysis

This is the observation of customer buying patterns, preferred choices, least liked products, preferred locations, purchasing habits, tastes, and trends in the market. This will help make the required modifications to attract new customers, keep the existing ones satisfied and not lose them to competitors. 

Consumer’s Sentiment Analysis and Decision-making

With the help of this solution, emotions can be scraped from the internet in order to find out how customers feel about a product, brand, or service so that insight can be gained and businesses can respond effectively to their customers, thereby improving customer experience and engagement. Machine Learning can also automate decision-making and customer support.

Demand Sensing and Raw Material Consumption Prediction

Using deep learning frameworks, predict upcoming demand, and predict which raw materials would be needed in a period of time to prevent shortage or wastage of supplies. AI can interpret a huge amount of relevant data and provide relevant insights. This will help in inventory planning.

Tracking Market Trends

The system will inform you about the new trends or products that come into the market and instruct you on what trends are worth your company investing in. Machine Learning correlates price and sales and dynamically optimizes the price based on that insight. Based on how to automate. By scraping from the various websites and social networking sites on the internet, and consolidating this data, we can provide comprehensive and detailed information for improved marketing techniques.

Automated Targeted Marketing

Instead of marketing to every nook and corner, why not market to people who would actually buy your product? Make your marketing system more intelligent with AI. The system will guide you as to which location to market in and using which medium or social networking site so that you have the exact target audience and avoid unnecessary marketing costs. When the right audience is reached, your clients will definitely increase. 

Logistics Management

Allow your retailers and customers to easily place orders directly from the company and then track their packages, thereby eliminating the need of a middle man in these times of Covid-19. Allow raw material orders to be placed with your vendors automatically when scarcity is sensed, thereby preventing the need to keep a tab on every raw material that would need replenishing. Predict demand, reroute in-transit goods, and modify orders using AI. This will lower your transportation costs.

Video Analytics Integrated with CCTV

Motion tracking and detection of equipment and employees using Video Analytics integrated with previously installed CCTV cameras will eliminate the need for full-time supervision. Identifies unsafe measures, detects unauthorized access, and keeps track of working of machines and equipment. Product counting, product identification, vehicle tracking, and monitoring, number plate recognition, and vehicle type identification can also be included. 

Recommendation Systems

Understand customer buying patterns and preferences to suggest similar items, which will help with cross-selling and up-selling. This can also be based on what the customers buy from competitors. The correct items will be offered using different types of filtering.

Churn Prediction

Data and feedback provided by the customer can be used to predict the likelihood of the customer discontinuing their subscription with you. Churn prediction thus helps your industry gain a superior understanding of expected revenue. Furthermore, being able to forecast the potential churn rate of a particular customer allows you to target that individual more wisely.

Predictive Maintenance

Past data about the machine is used to predict failure beforehand and inform about the problem before it arises to tackle it instantly. Anomalies in operation are detected. It allows you to schedule maintenance when your equipment and machinery actually need it. Preventing machine breakdown will save overhead costs. IoT devices are attached to these machines for timely interaction.

Chat Bot

Eliminate your manual tasks by integrating a WhatsApp Bot or a Bot for your Website or App to coordinate with stakeholders, suppliers, retailers, and/or clients. Track packages, provide customer reviews, solve customer queries and FAQs. Chatbots can also be multilingual, i.e. they can interact in all languages desired. Another point to be noted is that our Chatbots are as kind and polite as your human customer care, if not much more. 

AI in FMCG India

It is not an easy task to resemble the massive production and heavy manufacturing that takes place in India. This calls for an even greater urgency to ease all the processes that can be automated. AI is being integrated into several processes, be it CCTV cameras, machinery, and decision making. While this occurs, new, and more intelligent roles are being created. There is a call for everybody to become more tech-savvy and every country to be more tech-advanced. 

FMCG companies have extensively started using AI, and before long, all FMCG companies will realize the importance of deploying AI into their businesses and will begin to invest huge amounts into its implementation. AI in consumer products and goods companies will become standard, and AI in FMCG industries for marketing, analysis, and automation will soon be deemed ordinary. 

Read also:

How AI is Transforming BFSI Industry

Video Analytics in Manufacturing Industry

FAQ

Q: What are Use Cases Of AI in FMCG?

Ans: AI is used in various aspects of FMCG as – Tracking Market Trends, Sales Forecasting, Customer Behavior Analysis, Predictive Maintenance, Churn Prediction, etc.

Q: What is the role of AI in sales?

Ans: AI can help sales representatives identifying the prospects who can buy from them.