COLLABORATE TO REACH CONSUMERS Sharing Consumer Centric Data Proves Increasingly Valuable
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1 COLLABORATE TO REACH CONSUMERS Sharing Consumer Centric Data Proves Increasingly Valuable
2 Abstract The 3rd annual Shared Data Study Report 2012 by CGT and RIS News, which tracks trending among suppliers and retailers, featured an interview with Hari Shetty, VP, Retail, Wipro Technologies and Hiral Chandrana, Global Business Head - Consumer Goods, Wipro Technologies. In the interview, Mr. Shetty and Mr. Chandrana give their perspective on the importance of sharing consumer-centric data. They also throw light on the type of data most beneficial when shared with suppliers, the vantage point start-ups should focus efforts on, and the crucial factor to consider when sharing and analysing information. Hari Shetty VP, Retail, Wipro Technologies Hiral Chandrana Global Business, Head - Consumer Goods Wipro Technologies How have You Seen Data Sharing Impact the Relationship between Suppliers and Retailers? The majority of large food retailers have data sharing arrangements with their suppliers that take the relationship from a tactical level to a strategic level with the opportunity for increased collaboration leading up to Collaborative Planning Forecasting & Replenishment (CPFR). The benefits cut across the supply chain and merchandising for both. In some cases, there are instances where retailers have shared data for a subscription fee. However, what is most effective is data shared based on true collaboration, which includes integrating inventory and replenishment systems so the supplier knows when it is time to ship goods and the What is the Most Valuable Type of Data that Retailers can Share with Their Suppliers? What Insights are Most Valuable for the Retailer to Receive? The typical data shared between retailers and suppliers is item and sales data. However, we have noticed that an increasing number of retailers are sharing restricted data related to aggregate customer/loyalty information with key partners. Overall, this helps improve basket size and margins and in cases where a retailer lets a CG partner become category captain the data sharing extends to assortment mix and planogram information. The insights that are most valuable for a retailer have shifted from item, assortment and category performance view to consumer centric insights such as which physiographic / demographic groups are buying the products, what is their typical purchase pattern and frequency, what are the cross sell / up sell opportunities in these segments and what is the next logical product they are likely to buy. quantity needed for each shipment. 02
3 How can Downstream Data be Integrated into Suppliers Existing Business Applications? Data integration has multiple facets with each group within a CG organization finding new and innovative uses for the data shared. Typically, the accounts team uses it for value creation in the relationship; operations uses it to create supply chain efficiencies; and marketing uses it for trade promotions. The primary data for Demand Signal Repository comes from this source of data. If used effectively, an accurate demand signal has the potential to significantly improve service levels while improving inventory management across the value chain. From a process and technology perspective, data integration does not just involve defining the data and implementing the right technologies. Data integration needs be viewed as a MDM project with suppliers taking a very strategic view and ensuring that they set the right processes and structure in place to identify, manage and govern the data. For Companies that are Just Starting this Journey, Where should They First Focus Their Efforts? data and create a portal for information sharing. CG companies can start with a few categories, sharing data with select primary retailers. By combining the Consumer-Drive Demand Signal approach with a Sales and Operations Planning process, the CPG manufacturer will attain a more effective system to predict consumer demand and respond to the retailer s requirements. What is the Most Important Consideration when Sharing and Analyzing Very Large Amounts of Data? It is important to understand the data sharing objectives of both parties. Other important considerations are access controls, data quality, inclusion of unstructured data, life cycle, sharing methods, frequency. Typically, data is made available within 24 hours and in certain cases retailers are moving to near real time sharing of information to support DSD and price optimization. Additionally, there should be a closed loop to feed insights back into the value chain. This will ensure that changing consumer demands can be addressed in real time. Click here to read the full report Retailer/Supplier Shared Data Study 2012 For retailers the starting point is to clearly define the objective of the initiative, identify the types of data to be shared, the frequency of sharing 03
4 About Wipro Technologies Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360º view of Business through Technology helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner s approach to delivering innovation and an organization wide commitment to sustainability, Wipro Technologies has 135,000 employees and clients across 54 countries. 04
5 DO BUSINESS BETTER NYSE:WIT OVER 135,000 EMPLOYEES 54 COUNTRIES CONSULTING SYSTEM INTEGRATION OUTSOURCING WIPRO TECHNOLOGIES, DODDAKANNELLI, SARJAPUR ROAD, BANGALORE , INDIA. INFO@WIPRO.COM, TEL: +91 (80) , FAX: +91 (80) North America South America Canada United Kingdom Germany France Switzerland Poland Austria Sweden Finland Benelux Portugal Romania Japan Philippines Singapore Malaysia Australia Copyright Wipro Technologies. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without express written permission from Wipro Technologies. Specifications subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. Disclaimer: The views represented here are those of the author and do not necessarily represent those of Wipro Technologies. IND/RB/SEP2012-OCT2013
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