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FMCG Suppliers ‘Cannot Act’ Upon Consumer Data - New Honeywell Research

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FMCG Suppliers ‘Cannot Act’ Upon Consumer Data - New Honeywell Research

Nearly 60% of suppliers surveyed in the fast moving consumer goods (FMCG) industry admit that the amount of data they can now collect exceeds their capability to process and act upon it, according to a new report, produced by Intermec for technology and manufacturing firm Honeywell.

This was just one of a number of significant challenges cited by 350 C-level executives and directors from across the globe, 63% of whom believe their business is becoming more complicated and is impacting their ability to meet consumer and retailer demands.

Pressure to deliver lower prices, increasing competition, retailer relations and government regulations were named by respondents as the most significant challenges that are troubling to their business.

In addition to overcoming these challenges is the need for suppliers to share more supply chain data with consumers.

Globally, 57% of companies say their consumers are placing them under pressure to show better traceability.

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However this demand is not echoed by retailers, with just 35% of suppliers claiming they are put under much pressure from their retailers to improve traceability.

The results of this survey clearly show that business today is increasingly complex and challenging and there is no sign of that letting up,” said Brian Schulte, industry director for Direct Store Delivery at Honeywell Scanning & Mobility.

“It’s also clear that companies that are looking for ways to address their growing challenges and jump ahead of their competition are well advised to look at re-engineering their processes and consider upgrading the systems and technologies they use.

“With better processes and tools in the hands of their staff, consumer goods suppliers can benefit from efficiency and productivity gains, revenue increases, reduced costs and improved in-store execution.”

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The top areas of pressure faced by FMCG organisations were revealed to be:

1.         Lower prices

2.         Introducing more new products

3.         Competition from private label products

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4.         Analysing and leveraging customer data

5.         More frequent visits

Meanwhile, 51% of respondents indicated that they still use pen-and-paper processes in at least part of their Direct Store Delivery (DSD) operations.

For more information on this report, visit the Honeywell website.

© 2014 - European Supermarket Magazine

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