Internet of things meets consumer packaged goods
While IoT is more popular than ever among enterprise technology teams, some industries have been slow to invest. Unlike MOBI’s consumer packaged goods (CPG) sector customers, companies without a mobility management partner are hesitant to sacrifice the large amount of time, money and labor required to deploy IoT. In fact, the CPG industry overall ranks second to last in terms of IoT spending versus total revenue. Less than three-tenths of one percent in revenue generated is invested into IoT, while globally the average industry invests more than four-tenths of one percent — or more than 25% in additional revenue than CPG.
Also, IoT endpoints have historically been used by retailers to better collect, analyze and interpret consumer behavior to improve the customer experience. Unlike retail, inexperienced CPG mobility programs are more likely to rely upon in-store audits and partner-shared insights to understand consumer behavior instead — making IoT feel more like a luxury than an absolute necessity where gaining market insight is concerned.
However, things are starting to change. CPG companies are uncovering new, valuable uses for today’s IoT technologies that weren’t possible a few years ago. Here are eight examples that show how IoT is benefitting businesses in this sector:
1. More personalization
IoT offers CPG companies tremendous advantages and new product personalization options. By creating new channels to collect and understand market data more deeply, industry players can use these technologies to increase customer interaction, satisfaction and loyalty with specially designed offerings.
Some organizations are even combining offline tactics with IoT to better enable customers and increase sales. Advanced systems can detect when someone is browsing an out-of-stock product online and automatically offer directions to a nearby store that has the item in stock along with a discount coupon to make up for any inconvenience.
2. Less delay
Sensors and other mobile endpoints can help CPG eliminate traditional manufacturing and supply chain gaps. Relevant stakeholders can now be alerted immediately if anything goes wrong with real-time data streams and statuses attached to individual product shipments.
Predictive maintenance tasks fueled by IoT systems also greatly reduce the likelihood of unplanned network errors and accelerate company response times should an issue arise.
3. Better collaboration
IoT fuels stronger, more meaningful CPG relationships with retailers by creating a chance to collaborate and co-invest in tech-driven initiatives. In doing so, both parties aim to eliminate out-of-stock scenarios and improve product availability, leading to long-term strategies and success.
4. Enhanced insights
An influx of new consumer data enables the CPG industry to identify behaviors, patterns and trends that companies couldn’t reveal otherwise. That means smarter spending and product development decisions that align with market demands.
Organizations with a digital sales presence will even be able to use IoT to suggest products, offer discounts and push notifications to online shoppers as they browse offerings, increasing the potential for add-on sales and enhancing the customer experience.
5. Real-time tracking
Moving and transporting goods also becomes more accurate and aware with IoT’s integration. Advanced sensors can help CPG enterprises monitor real-time fluctuations in temperature, product status and so forth to optimize operational processes and potentially create more effective, efficient workflows.
6. Smarter stocking
smart shelves and inventory stocking systems use IoT to make continuous product updates that alert CPG organizations when item levels are low. This not only gives retailers the ability to avoid empty shelves and dissatisfied customers, but also helps CPG companies replenish products before a competitor has an opportunity to replace it.
7. AI-driven assistance
When combined with artificial intelligence, IoT systems give CPG enterprises the ability to scan products and streamline inventory management tasks. These enhanced technologies can even automatically recommend products to digital consumers in a way that maximizes sales and the impact of special promotions.
8. Global security
Through RFID and a GPS, IoT makes it possible to track products at more in-depth levels than ever before. CPG companies that use these systems ensure accurate and timely deliveries while simultaneously minimizing theft and loss incidents.
If these benefits sound too good to pass up, an IoT initiative may be in your organization’s not-too-distant future. If you’re considering an advanced device deployment for the first time, however, keep these three things in mind:
While there are impressive IoT technologies capable of vast functionality, ultimately the success of any enterprise deployment depends on the digital maturity of the people interacting with it. Even the most advanced systems fail if workers can’t figure out how to use them or aren’t willing to try.
Since IoT is expected to impact consumer behavior, employee productivity and HR management, CPG companies need to formulate strategies and carefully implement these new devices.
Enterprise workflows will also be impacted by IoT’s workload. Some processes will need to be redesigned or combined with others to make these advanced technologies perform to a level that satisfies business needs.
Data that’s collected and processed by connected IoT endpoints empowers decision-makers and supply chain leaders with information to satisfy customers and strategically grow revenue.
The speed and fluctuating types of data generated by IoT systems can be challenging for CPG organizations to manage and secure. Unless a business is willing to invest in internal data storage systems, be sure to research innovations like hype data technology, additional security layers and data storage facilities to have a plan in place before deployment starts.
As mobile technology grows more advanced and integrated within the CPG sector, IoT will help these companies drive innovation and productivity. While the business benefits can be tremendous, it takes careful planning and a strategic approach to make these initiatives impactful.
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