In continuation to our previous blogs that discussed leveraging analytics to drive customer intimacy and profitability in the Direct-to-Consumer (D2C) era, this blog looks at how advanced analytics can help overcome supply chain challenges.
The D2C business model calls for a re-imagination of traditional Consumer Packaged Goods (CPG) supply chains that have proven inadequate in the wake of the post-pandemic rapid-fire shifts in demand.
How can then CPG players navigate product shortages, increased costs from stock, inventory write-offs, and related inefficiencies up and down the value chain?
Re-defining D2C Supply Chain Planning with Data & Advanced Analytics
According to a research report, subscription business models are anticipated to grow from USD 650 Million in 2020 to USD 1.5 Trillion in 2025. The subscription economy continues to grow alongside D2C, leading to the rapid creation and adoption of package sizes, marketing and last-mile logistics.
Case Study
AI-led Risk Management and Analytics Transform Supply Chain for a Frozen Foods Major
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If we view the challenges from the opportunity lens, we see three distinct possibilities:
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Leveraging advanced analytics to predict customer behaviors: This effectively addresses the challenge of understanding the variability of future demand, which has become more volatile, granular and segmented. The right supply chain analytics solutions will enable CPG companies to anticipate and forecast changing consumer buying behaviors with a high degree of accuracy and successfully fulfill requirements across different categories and regional markets.
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Integrating AI / ML and data to achieve network-wide inventory visibility and advanced optimization: This results in the pooling of inventory across e-commerce and brick-and-mortar channels, thereby eliminating sub-optimal levels of inventory across the distribution network of CPG companies. They can achieve a more granular segmentation, better prioritize trade spending for their most important retailers, monitor online prices in real-time to eliminate pricing conflicts very early and minimize downside impact.
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Building automated advanced planning and execution workflows: This allows demand planners to shift focus to more complex issues and improve organizational efficiency. It creates an explicit link from forecast demand signals back to the production schedule to ensure sufficient raw materials are in place.
The right solutions will maximize product availability and production capacity while lowering the total cost-to-serve. Such predictive planning can model potential future scenarios, and simulate the impact and implications of various mitigation measures on the supply chain. Besides, machine learning methodologies help paint a clear picture of the entire supply chain for COOs to optimize for specific variables.
In the online world, gathering the right data to conduct revenue management analyses is difficult. Thus, advanced data management and analytical solutions become critical to simplifying direct-to-consumer supply chain complexities and providing quality insights. This will, in turn, drive enhanced consumer engagement, optimal operational costs and continuous improvement.
About WNS Analytics:
WNS is a digital-led business transformation and services company with 60,513 professionals across 64 delivery centers worldwide, including facilities in 13 countries. WNS combines deep industry knowledge with technology, analytics and process expertise to co-create innovative, digitally led transformational solutions with over 600 clients across various industries. WNS Analytics is the Data, Analytics and AI practice of WNS that enables business decision intelligence for clients by combining Artificial Intelligence (AI) and Human Intelligence (HI). We cater to 250+ global companies including Fortune 100 and Fortune Global 500 organizations. WNS Analytics is a robust practice of 6,500+ Domain, Data, Analytics and AI experts with proprietary AI-led assets and innovative technologies. We enable businesses to make transformative decisions backed by data-led intelligence, ensuring differentiated outcomes. WNS Analytics is an end-to-end Consulting-to-Implementation partner delivering business goals for clients with an integrated ecosystem of co-creation labs, strategic partnerships and outcomes-based engagement models
To know more, visit https://www.wns.com/capabilities/analytics