The Grocery Manufacturers Association (GMA) and A.T. Kearney recently released Capitalizing on Retailer Data Within the CPG Organization, which reports results of a thought leadership session focused on challenges and opportunities for leveraging retailer data in consumer packaged goods (CPG) companies.
More than 30 value chain executives participated in the open discussion on how to capitalize on retailer data, develop collaborative approaches, and build IT and analytic capabilities.
Participants highlighted the compelling need for CPG companies to align their data warehouses and insight efforts with the way the retailers segment. If the CPG manufacturer has not established internal cross-silo interactions, it will be hard to develop effective collaboration with sustainable and scalable benefits for retail partners.
"CPG-retailer collaboration efforts today merely scratch at the true potential. Capitalizing on retailer data is as much about how CPG companies apply learnings in decision making as it about bringing these insights to the retailer to win with their consumers," said Jeanne Iglesias, GMA senior director, industry affairs and collaboration. "If insights are not aligned with how information is actually used, opportunities can be overlooked."
For example, according to a manufacturer case study included with the report, demand forecasts built using POS and store inventory data are found to be a better predictor of demand than traditional sales and operations planning efforts.
Source: Grocery Manufacturers Assn.