Two-thirds of store delivery suppliers cannot process all consumer data
More than 60% of store delivery suppliers in the Australian and New Zealand fast moving consumer goods (FMCG) industry admit the amount of consumer data they can collect exceeds their capability to process and act on it, a new report from Intermec by Honeywell reveals.
Intermec surveyed 350 C-level executives and directors from around the world and found that 63% believe their business is becoming more complicated and is impacting their ability to meet consumer and retailer demands.
The top six areas of pressure faced by Australian and New Zealand FMCG store delivery suppliers were:
- Lower prices.
- Introducing more products.
- Competition from private label/own brand products.
- Analysing and leveraging customer data.
- More frequent visits.
- Increased levels of trade spending.
Store suppliers also need to share more supply chain data with consumers. More than 50% of those surveyed said their consumers are placing increasing pressure on them to show better traceability. However, retail suppliers aren’t feeling this pressure quite as much: just 35% said they experience pressure from their retailers to improve traceability.
“These survey results are proof that Australian and New Zealand store supplier businesses are experiencing more pressures than ever before from consumers, competitors, as well as industry and government,” said Honeywell Scanning and Mobility Country Manager, ANZ Tony Repaci.
“Many businesses have reached a point where they are seeking new ways of dealing with these pressures and better competing in their industry. They are looking at how they can change their processes and upgrade their technology systems to increase efficiency and productivity, which will have the benefit of cutting costs and raising profits.”
64% of Australian and NZ respondents said they still use pen and paper processes in at least part of their direct store delivery (DSD) operations. This means only 40% of the companies said their route sales representatives have the tools they need to do their jobs effectively, Intermec says.
Intermec claims that the 30% of Australian and NZ store delivery suppliers that have undertaken a re-engineering process of their operations, technologies and systems have received - or expect to receive - tangible cost savings of AU$624,000 annually.
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