The COVID-19 pandemic and the lockdown resulting from the health crisis have caused significant changes in consumer habits and behaviours, including their purchasing methods. Faced with the impossibility of going out during March, April, and May 2020, consumption shifted to within the home.
This led to a huge digital acceleration which, once the lockdown ended, did not return to pre-pandemic levels but rather continued its upward trend. In this way, COVID-19 has acted as an accelerator for e-Commerce.
One sector that has seen a great impact and a significant boost from digital channels is the fast-moving consumer goods (FMCG) sector. The closure of high street shops and stores has led consumers to opt for purchasing their goods online, making use of e-commerce platforms to obtain essential items.
Thus, many companies have adapted their business models and opened online channels to offer their products in the digital environment. In light of this e-commerce growth, it's important that companies make use of accelerators that enable them to grow and gain advantages over their competitors.
FIFO and stock rotation
When we use the acronym FIFO, we are referring to the warehouse management method First in, first out (First In, First Out). This means that products or goods leave a warehouse in their chronological order of entry: the first ones in are the first ones out.
In the fast-moving consumer goods sector, companies can benefit from employing this method. It prevents the loss of perishable products leaving storage facilities before reaching their expiry date, thus reducing stock loss and associated costs.
Furthermore, The use of the FIFO method alongside a correct calculation of stock turnover provides a competitive advantage to fast-moving consumer goods companies. Having high rotation values indicates that a company is profitable and that its products are constantly being renewed. Knowing stock turnover is important to avoid stockouts and to be able to meet consumer demand.
Last-mile capacity and sustainable fleet
In the context of mass consumption and e-Commerce, it is important to make capillary distribution profitable and to have a fleet of vehicles that guarantees supply and delivery to users. Furthermore, something that can constitute a great competitive advantage for any company is show their commitment to the environment and the sustainable development of the planet.
The increasing awareness of the negative impact of greenhouse gas emissions and pollution has led to the development of sustainable and efficient business models and vehicles that run on clean energy.
Big data and AI
The best way to optimise the fast-moving consumer goods environment is to make use of the immense amount of information that users share online to determine consumer profiles and offer them what they need and want. To this end, Big data is used to carry out the collection and analysis of the different data that can be obtained through e-commerce..
Artificial intelligence allows conclusions to be drawn from this data and user preferences, needs, and habits to be understood. This presents a great opportunity for companies, who can gain insight into the evolution of consumer profiles and establish strategies and measures aimed at achieving the most satisfactory user experience possible.
Omnichannel
The pandemic has greatly accelerated the way users buy products and goods online. It is no longer limited to isolated actions in a linear and horizontal market, but rather there are increasingly more models, more channels and more actors relating to each other, and always consumer-oriented.
Omnichannel allows new users hyperconnected, hyperinformed, and valuing transparency interact with brands and be able to influence their decisions. The ability to establish different, close, and simple channels for users encourages their loyalty because they project an image of the company as open and accessible.
Innovation
Any business needs to renew itself to guarantee its continuity. Just as consumer profiles evolve, so too must products, services, processes, communication channels, and systems evolve to reach users.
Furthermore, innovation must go hand-in-hand with technology to meet the demands of a hyper-connected consumer who is aware of the possibilities offered by the internet and who will not settle for less.
In short, The fast-moving consumer goods sector has many avenues available to it that can provide good accelerators for companies to position themselves better than their competitors in the market.
