Sharing your data with your supply chain partners can really maximise its effectiveness

Collaboration the key to getting value from data

Sharing your data with your supply chain partners can really maximise its effectiveness, according to a recent webinar that analysed FMCG brands’ and retailers’ relationships with big data.

BUSINESS analysts RecommenderX is hosting a series of webinars featuring industry experts to help break down big data. The first in the series covered FMCG Brands & Retailer Relationships with Data. The discussion featured Declan Carolan, GM of ECR Ireland and Co-Chair of ECR Community; Hash Alsadi, UK Head of Business Development with RecommenderX; Stephen O’Neill, Head of Category, O’Brien Fine Foods; Roger Jackson, CEO, Shopper Intelligence; and Kevin McCarthy, CEO of RecommenderX. The Q&A format provided a lively platform for debate and discussion to explore the sometimes overwhelming nature of big data and what to do with it.

What do people think about data?

Roger: “What we find for a lot of the retailers that we work with is that they see more and more data sources each year, and often more cost associated with collecting and interpreting it. The reality is that it is a challenge to understand what data says and how to use it effectively. To some retailers, data is something like a necessary evil rather than a valuable resource.”

Stephen: “As retailers who have gone on a journey to make data work for us, we see it as a resource. But that is how we see it now, at the end of a long and involved process. We have brought ourselves to a position where we have made data an effective tool to help build our brand and business. There are very large costs associated with data collection, cleaning, storage, etc. Like any part of our business, we have invested in data and we must see a return on that investment.” manufacturers that data belongs to them. Roger and Stephen, as data providers and consumers, have already mentioned the cost associated with data. Of course, you own the data you invest in, but the companies we see getting the most value from their investment are those who are willing to share it with their partners in the supply chain. When all the partners bringing a product to a consumer share their data, they can add value at each part of the chain and help to deliver a return on the investment they made in gathering that data. While you own your data, you need to share to see its full value.”

The first RecommenderX webinar on FMCG Brands and Retailer Relationships with Data proved a lively debate.

Getting the truth from data often depends on the question being asked, or even how it is asked. Can we use data to find the one source of the truth?

Hash: “Getting the ‘truth’ out of data

When all the partners bringing a product to a consumer share their data, they can add value at each part of the chain and help to deliver a return on the investment they made in gathering that data.

Declan Carolan, General Manager, ECR Ireland and Co-Chair of ECR Community: “While you own your data, you need to share to see its full value.”

depends on the volume of data, its accuracy and its relevance to the questions being asked. If we have a specific question to ask and collect the right data to ask it, of course we can get the truth and find actionable insights; if not, there is no point to data collection. It is that process of understanding how to use data to get to the truth that we are engaged in refining now.”

Kevin: “We are definitely in an ongoing revolution. The FMCG sector has been very good when compared to other sectors with regard to volume of data collection. But in terms of what to do with that data, or agreeing common standards to ensure accuracy across the sector, it is behind some other sectors. Ensuring accuracy is absolutely essential if we are to get the correct answers. With that accuracy we can get more easily to the answers we’re looking for.”

Roger: “Getting a single simple solution to a question is always the goal. As a sector, we are still in a learning process. Unfortunately, it can be an expensive process and the reality is that to date, investment in data is not always an investment that has produced a return. The costs associated with getting your hands on it can far exceed the value of what you can do with the data. But that is only in the short term. The reality is that have been evolving and learning and the organisations that have experienced growing pains will be better positioned for the future.”

How do we make data more valuable in the short term?

Declan: “In one word, collaboration. The companies that we have seen that are willing to trust their supply chain partners and share data towards shared objectives are the ones that are maximising the return on their investment.”

Hash: “Absolutely. How you use the data directly affects the value right now. We need fast-moving data for a fast-moving sector for sure, but how you target and use that data is how you make your money back. Ask important questions that will lead you to actions.”

Stephen: “Treat it as an asset rather than a cost. Using data as a tool to inform your overall strategy means you can begin to see the value in the asset rather than just the cost of collecting it.”

Roger: “If you frame your questions based on your needs rather than the data you have available, you can increase value. Make your data answer questions you need answers to. Don’t just spend time capturing and interpreting data. Make it answer the questions that matter to your business.”

Kevin: “I agree, it absolutely comes down with having a specific objective that the data will serve. Otherwise you just end up paying a data tax for collection without insight.”

O’Brien’s have been on a journey with regard to data use, has it been a successful one?

Stephen: “Yes, but not an easy one. We have democratised data within the organisation and looked for ways to work smarter and more effectively. We really do treat data as an asset and we have allowed it to be used quickly and easily by disparate departments with differing needs to deliver specific insights and suggestions. We are definitely seeing benefits to processes, efficiency and effectiveness across the organisation. But it took a lot of planning, time, hard work and investment to get to where we are.”

Conclusion

Big Data has been with us for many years now and it keeps getting bigger. We have arrived at a time where the data found in the FMCG sector can be captured and cleaned fast enough to help inform even short-term decision making. With this plethora of data, it is more important to know what you want it to do for you before you start collecting it, or you run the risk of paying a cost that may never see a return.

About RecommenderX

RecommenderX was founded in 2016 with the goal of addressing a recurrent business problem. Companies have large quantities of data and they want their businesses to be data-driven; however, the data is siloed, difficult to obtain, and requires significant manual repetitive effort to cleanse and integrate. And all of this before the data is analysed, visualised and mined for insights. RecommenderX blends experience in machine learning, predictive analytics, data visualisation, recommendation and information retrieval to deliver solutions for its customers. For more information, visit https://recommenderx.com.