AI for CPG – the way forward

AI for CPG – the way forward

The consumer packaged goods industry is one of the fastest-growing industries. This is also one where there is a constant demand. Growing competition, ever-changing supply chain demands, and unpredictable customer behavior are among the major challenges most CPG businesses face. To tackle all these challenges these businesses have now started using artificial intelligence in some form. The many benefits of AI for CPG have been transforming the industry drastically over the past few years.

Some use cases to look into

When it comes to using AI for CPG businesses, here are a few use cases that businesses small and big can consider to begin with –

  • Businesses looking to diversify their product lines can use predictive analysis to identify market demands.
  • Any business that is looking to expand its presence geographically would be able to identify the most profitable regions to target next.
  • A better understanding of competition is possible by understanding the business’ progress, current trends, and future demands.

All of these use cases depend on machine learning models that can process large volumes of historical data. These models compare the prior predictions made and the real-time actuals. Based on the feedback, the models learn and continue to improve in their prediction capabilities. Therefore, CPG industries find AI to be a cost-effective investment that helps in creating a strategy that helps them make better decisions. Besides all these use cases, the simple automation process that most CPG businesses use becomes smarter and easier to control from anywhere.

Survive and thrive in a competitive realm with strong marketing strategies

Consumer packaged goods is a segment where there is a new brand popping up almost every day. There are even major players from other segments venturing into this segment as they diversify their product lines. To tackle all this and ensure that your business still reaches the right target audience, you need a sound marketing strategy. AI helps your business understand whether that marketing strategy you have been using is actually delivering the intended results. AI makes it easier to understand customers’ behavior.

This can sound like a non-tangible data input but AI makes it possible through browsing history, order history, time spent on the app/website, and other inputs. All this information would be valuable when your business is coming up with plans for promotions. What use would a sale be if the number of sales that happen does not increase on the sale day? This AI helps you understand the time of the year when promotions are successful and the pricing strategies to increase sales.

Enhancing customer experience in several ways

CPG is heavily reliant on consumer experience. If your business continues to follow traditional processes, if the digitization of your brand is not up to the mark, you might end up losing even your loyal customers. Customers love hybrid experiences like ordering online for doorstep delivery or picking up from a store skipping queues. Customers love priority service and timely notification about promotions. Customers also love it when they are able to find the products they need with a simple voice command.

To ensure that your business is ready for all this AI is just what you need. Brands in the CPG industry have even started implementing cashier-free stores where customers walk out without billing counter queues. There are many that provide virtual shopping assistants that bridge the gap between shopping at a store and shopping online. So, now is the time to explore the many ways to incorporate AI and personalize the experience for your customers.

Redefining the supply chain strategies

Maintaining an inventory is expensive. Poor inventory management can either lead to customer dissatisfaction due to products constantly running out or losses due to excess stock. And if the product that is purchased in excess happens to be something like clothing and if the trend quickly passes, it becomes a futile expense. AI tackles several such problems by eliminating assumptions and providing predictions backed by reliable data sources. Price adjustments of the same items as per market fluctuations, as well as timely restocking all become possible.

So, if your business is in the CPG industry, understand that now is the best time to take the leap. AI for CPG can be a revolutionary step in making your business more prepared for the competition and the market variables as well.

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