WASHINGTON — A new report from the Grocery Manufacturers Association and A.T. Kearney suggests that CPG companies and retailers need to do more to take advantage of retail data in a collaborative way.
“CPG-retailer collaboration efforts today merely scratch at the true potential,” said Jeanne Iglesias, GMA senior director, industry affairs and collaboration. “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. If insights are not aligned with how information is actually used, opportunities can be overlooked.”
The new report, “Capitalizing on Retailer Data Within the CPG Organization,” examines results of a thought leadership session focused on challenges and opportunities for leveraging retailer data in consumer packaged goods (CPG) companies. More than 30 executives participated in an open discussion on how to capitalize on retailer data, develop collaborative approaches, and build IT and analytic capabilities.
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.