CPG Sector market analysis – How supply planning solutions helped a CPG firm to reduce stockouts

LONDON: Quantzig, a global analytics services provider, has recently completed their latest supply planning solution for a CPG client. The global CPG industry is the foundation for the contemporary consumer economy as it drives enormous amounts of money into businesses like advertising and retail. It is also a means for the national economy to increase the gross domestic profits (GDP). Players in the CPG industry are looking to create and enhance shopping customer experience owing to the recent digital advances.

“The supply planning solution helped the CPG client to take into consideration the seasonality, tendencies, and the cost of production to decrease stock-outs. Additionally, the engagement helped the CPG client to predict customer demand patterns and meet production requirements.” says an industry expert from Quantzig.

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The supply planning solutions helped companies to increase forecast accuracies and enhance version management capabilities. Additionally, firms were also able to develop a robust inventory replenishment plan to offer consistent and reliable customer service to drive improvements in the supply chain performance.

Additional Benefits of the Supply Planning Solution

Increase forecast accuracy and management capabilities
Offer consistent and reliable customer service
Help predict demand to decrease the cost of production and stockouts
To know more, request a free proposal

To know more about how our supply planning solution helped the CPG client

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Top 3 Challenges in the Fast Food Industry

The changing lifestyle of people and the increasing pace of living has inspired the birth and popularity of the fast food industry. Companies in the fast food industry have carved for themselves a special place in our hearts to such an extent that despite rumors and reports of the health impacts that fast food can have on our body, our love for fast food continues to remain strong and unaltered. Players in the fast food industry are minting money owing to the growing demand for food products around the globe. Fast food chains, such as McDonald’s and Domino’s Pizza, have given rise to the franchising revolution around the world, which has proved to be a smooth medium of expansion and profitability for players in the industry. But like every other industry, the fast food industry is not free of setbacks and challenges. Let us discuss a few of them here to see the bigger picture of the hindrances awaiting companies operating in this industry:

Fast Food Industry Challenges

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Consumer food products manufacturer improves marketing ROI through customer behavior analytics

Business Challenge: Obtaining clarity on customer behavior and buying preferences. A leading consumer food products manufacturer wanted us to analyze customer behavior and buying preferences specific to particular product categories.

Situation: Reduction in sales volumes due to lack of clarity on customer behavior

The food products client was facing dropping sales and was not able to ascertain how they can influence customers and improve sales. They wanted us to analyze and predict the future buying patterns and identify consumers that can be targeted and influenced.

Solution/Approach: Correlation and regression modeling of customer data to predict future customer behavior

We used highly structured surveys and questionnaires to collect customer data and conducted data analysis to assess purchase patterns and preferences. We conducted an ethnographic study for environments in which participants live, work or spend their spare time. Correlation and regression modeling was done on the qualitative and quantitative data along with CRM data to predict future behavior and buying patterns.

Impact: Improved ROI from spend on marketing activities

The food products client gained visibility on the factors that influenced consumer buying behavior for their brand. We also provided comparative analysis with the competing brands, which helped the client assess the strengths and weakness of its own brand in comparison to competition. A statistical model was built which enabled the client to analyze and predict the customer behavior and future buying patterns of various customer segments and target the right customer segmentation for immediate impact on sales.

Fast-food chain improves cross-selling and up-selling of products through big data analytics

Business Challenge: Developing product recommendation platform for customers

The client wanted to implement an effective mechanism that could assess the nature of individual customers and recommend the right products to them, for effective cross-selling and up-selling.

Situation: Lack of accuracy in the current model

The current model was not proving effective when it came to accuracy of predictions at an individual product level. The client wanted to implement a much more robust mechanism.

Solution/Approach: Big Data analytics for clustering outlet level data and developing actionable insights

We segmented and clustered the stores based on various factors including demographics, location, categories etc., to develop effective cross-sell and up-sell recommendations. Our robust algorithm also facilitated determination of the correlation between different products, based on customer behavior.

Impact: Improvement in cross-selling and up-selling opportunities resulting in greater profitability

Our solution helped the client in implementing an improved product recommendation platform. This assisted them in automating the process of product recommendation to the customers and improving the chances for cross-selling and up-selling.

25% reduction in employee turnover rates achieved by food outlet through implementation of turnover prediction model

Business Challenge: Reducing the employee turnover

A leading food outlet wanted to understand the reason behind the increasing turnover of its employees, and find ways of improving retention.

Situation: Day-to-day operations being affected due to significant increase in employee turnover

The client was experiencing a constant increase in employee turnover, which had a bad impact on their operations and ability to handle customers. This eventually started impacting the customer satisfaction.

Solution/Approach: Turnover prediction model for early identification of outlets at high risk

We conducted data analysis on survey results conducted with existing and outgoing employees. On the basis of this data, we were able to assess the primary reasons behind the turnover. We also developed a turnover prediction model with high accuracy and conducted regression analysis on the top factors to create clusters of high risk. The client was able to use our customized dashboards for data visualization of predicted turnover and outlets at high risk.

Impact: Reduced employee turnover and efficient risk mitigation planning resulting in improved customer satisfaction

Our solution helped the client gain insights on the reasons for increasing employee turnover. We also deployed a mechanism to raise an on-time risk flag that predicted potential turnover and high risk zones, which helped the client create risk mitigation planning and linking it to seasonal absences, resignation trends etc. The client strengthened its recruitment planning which helped in avoiding being blindsided by loss of critical workforce. The major benefit was reduction in turnover rate by up to 25%.

Food retailer improves margin through implementation of supply chain analytics solution

Business Challenge: Improvement in supply chain operations

The client wanted to make significant improvement to its supply chain in order to tackle the challenges arising with increase in the global supply chain complexity.

Situation: Issues with managing increasing demand

The client was facing issues with procurement of materials from several global suppliers and meeting the increasing customer demands on time.

Solution/Approach: Supply chain analytics solution to improve order management

We made use of existing supply chain data of the client to develop understanding of the current process and potential improvement areas. Our solution helped the client in re-evaluating the supplier strategy, improve internal performance metrics, and improve the order management process.

Impact: Improvement in inventory management, reduced lead times and cost optimization

Our solutions helped the client in significantly improving the inventory management process and reduce the lead time. The client was also able to achieve reduction in operational costs helping them achieve improved margin levels.

Leading alcoholic beverage brand improves marketing ROI from social media campaign through big data based brand tracking solution

Business Challenge: Inability to accurately measure the returns from social media campaigns

A leading alcoholic beverage brand wanted to assess the impact of its social media campaigns and measure the marketing ROI.

Situation: Issues with deciding on the right channels and promotion strategy for improved profitability from social media campaigns

Due to lack of visibility on the level of returns from various campaigns and investments, the client was not able to determine which efforts were profitable and which ones were not yielding expected returns.

Solution/Approach: Social media monitoring and big data analytics

We made use of the vast customer data gathered through social media listening solutions, to filter and obtain conversations at an individual brand level from across social media channels. We used big data analytics to obtain granular insights on critical factors such as engagement patterns, mentions of influencers, shares, clicks, likes, retweets etc., and used these insights to measure the effectiveness of the client’s social media campaigns.

Impact: Improved marketing ROI from social media campaigns

The client was able to track all the efforts on social media campaigns and measure ROI through KPIs such as clicks, likes, shares, retweets etc. These insights were used to determine the most profitable campaigns, and optimize the spend levels by focusing only on the profitable social media campaigns.

Bakery and confectionery products manufacturer achieves better marketing ROI through improved customer segmentation strategy

Business Challenge: Traditional market segmentation strategies not yielding expected return on marketing investments

A large bakery and confectionery products manufacturer relied heavily on the traditional customer segmentation strategies, and was facing issues with effective segmentation. As a result of this, the company was not able to achieve expected returns from the marketing investment.

Situation: Unable to derive granular insights from vast customer data

The client had access to vast customer data, but it was getting tough for them to analyze them through its existing tools and processes, in order to develop insights. Traditional methods were unable to classify the customers at a granular level based on profitability, and create effective segments for deployment of targeted marketing strategies.

Solution/Approach: Predictive modeling to classify customers based on profitability

We assessed the client’s existing strategies to identify gaps and propose an improved scheme for better customer segmentation. We developed a predictive modeling based solution for assessment of profitability levels of customers and segment them accordingly. Recommendations were provided on which segments to focus more on, and which segments to be treated lightly.

Impact: Improved marketing ROI through targeted marketing strategies

The client was able to gain insights on customer segments and sub-segments that provided them maximum profitability. Using this information, they devised a new customer segmentation strategy which helped them in channelizing marketing and promotions spend on these identified segments. High priority was given to the profitable segments, while the segments with less profitability were given less importance.

Packaged food manufacturer improves marketing ROI through improved campaign planning

Business Challenge: Need for better campaign planning to improve marketing ROI

A leading packaged food manufacturer wanted to optimize its marketing efforts by implementing the right marketing mix model which could help them achieve maximum return on investment.

Situation: Marketing spend not yielding expected returns

The client was following a traditional marketing communication strategy which was not delivering maximum possible return on investment from the marketing efforts.

Solution/Approach: Marketing mix modeling for maximizing ROI

We made use of client’s internal data to develop an understanding of the current spend levels and returns achieved through them. Based on this, we recommended on the most effective marketing investments as an alternative to the current spend. We helped the client in streamlining its campaign planning for alignment with the business goals.

Impact: Improved effectiveness of the campaign spend and customer loyalty

We helped clients in effectively minimizing spend on campaigns, and improve the impact of the campaigns through targeted efforts. The client was able to achieve greater profitability and customer loyalty over a period of time.

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Tag: Food