siliconindia | | August 20199to the channel). Today, the primary focus is to empty the distributor shelves to be replenished automatically (selling through the channel). This has resulted in faster inventory turnaround. Hence, it would generate better ROI for the distributor, thereby strengthening the relationship with the organization. Besides, the organization would have a regular view of the secondary sales (from the distributor to the retailer) translating into a higher degree of accuracy in forecasting and demand planning.Connecting to the suppliers on the other hand has allowed FMCG organizations to move towards Vendor Managed Inventory (VMI) type of a relationship. Hence, the supplier can not only control the inventory at his level, but also at the organizational level. He also gets a view of future requirements, which allows him to plan his production schedule efficiently. The inventory at the organization would always be at a balanced level.Mobile Devices & PDA: Awareness of the use of Java based mobile phones is definitely increasing, and more applications are being built for this platform. FMCG companies are looking at automating their sales force with the help of such applications. It is envisaged that the efficiency of the sales force would increase by at least 15-20 percent with the help of such packages. This would have a direct and a favourable impact on top line growth. Most of the planning activities of the sales person, like the retail outlets to be visited during the daily `beat', and the order-taking process at the retailer's outlet, would be automated, thereby allowing him to spend more time with the retailer for selling. However, FMCG companies deploy distributor's sales force for front line selling. Providing them with PDAs is a difficult option because of prices and usability. In spite of this drawback, big FMCG majors have ventured into this area and have been successful. This is certainly the future. If we do not get this going, we are only delaying the inevitable.Business Intelligence & Collaboration Tools: Organi-zation with a consolidated and comprehensive data bank will always have a competitive advantage. But the job is only half done. The management would need to arm itself with the type of proactive market, operational and financial intelligence, which allows it to be one step ahead of the pack. This is where Data Warehousing/Business Intelli-gence tools come to the fore. While ERP and supply chain packages would allow for data collection, data warehous-ing tools would allow the information to be extracted. The same information can be viewed in numerous graphical outputs, adding more value to the same data. A powerful visual representation allows various departments to have a fast and a meaningful feedback.Then again, if someone is sitting in one corner of a corporate office and analyzing the data using such tools and then presenting it to the management, it does not benefit the organization much. The decision making process becomes a post mortem in such cases, since necessary delays have crept into the system during the to & fro information exchange. Therefore, it is necessary to analyze the data jointly across different geographic locations through collaboration. This is where collaboration tool has a major role to play. Analyzed data can be shared across locations through a single meeting place, and instant decisions can be taken. Albeit this trend is yet to catch on in India, but it certainly is the way forward for the future.Besides the above, most FMCG companies are looking at improving the communication process among employees, and at streamlining operational efficiencies through initiatives like Employee Portals. Employees are also being educated on the importance of guarding the information infrastructure. Stringent IT security policies are in place to protect the `Information Assets' and prevent its misuse. Arup Choudhary
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