Consumer Goods Sector: The Value Cloud Brings to the Table
The Cloud Revolution has arrived and is definitely here to stay. Cloud technologies have transformed the landscape and changed how businesses are conducted across sectors over the past decade. Almost every industry has significantly benefited from cloud technology and digital transformation, but for some sectors, the cloud has become the focal point of their business operations. The consumer goods industry is undoubtedly one of them, especially during and after the Covid-19 pandemic.
According to McKinsey Research, today’s challenges in the consumer goods industry such as:
- Post-Covid uncertainty: New possibilities of hybrid and remote working, a renewed focus on supply chain and manufacturing resilience, and value- and safety-conscious consumer behaviors
- Failure of the traditional value creation and the explosion of small players: Niche players are generating 2.5x their share of growth compared to sales
- Fragmentation of consumer preferences: Ex: Health, sustainability, and authenticity
- Influence economy: The brand building has a lifestyle component and relies on micro-moments, influencers, and social versus equity marketing
- Unspurge in digital channels: Significant growth of digital engagement and contactless commerce
- Agile data-driven marketing: Personalized to consumers and delivered via rapid cycles with omnichannel ROI Measurement
- Accelerated product ideation: to launch enabled by social listening, analytical occasion mapping, and digital test launches
- Responsive planning, production, and replenishment: orchestrated by advanced planning models, workflow automation, and smart plant technologies
- Digital Integration of B2B2C ecosystem partners to the point of sale: allows CPGs and retailers to digitize all touchpoints and offer new fulfillment options
- One online shopping e-commerce site reached $25 billion in sales in just 24 hours for the popular “Singles’ Day” holiday in China.
- Fifty-eight percent of enterprises are seeing increased customer retention and loyalty due to using customer analytics.
- More than 200 fully featured services are available on cloud platforms where you only pay for what you use.
- Using cloud technology, a major restaurant chain exceeded performance targets by up to 66% and completed 8,600 transactions per second via its point-of-sale system.
1) Operational Efficiency
The cloud has consistently proven itself a highly beneficial system for operational efficiency in the consumer goods sector. Cloud computing offers omnichannel tools for every aspect of the business, from inventory management to CRM, data management, and HR. Cloud tools enable teams to collaborate on projects and workloads in real time, creating the right environment for an efficient workspace. Consumer goods companies can save valuable time and money by embedding cloud-native services and 3rd party integrations in their operations to enhance communication and collaboration. The seamless scalability of cloud solutions allows consumer goods enterprises to adopt shifts in global demand and changes in consumer behavior and optimize production depending on fluctuations in the supply chain.
2) Data Analysis
In the consumer goods sector, data possess particular importance for businesses. The volume of the data collected from users is immense, and companies need effective solutions for gathering, storing, monitoring, and analyzing. With cloud solutions, companies can seamlessly store and access data whenever needed. Cloud tools accelerate data processing speed compared to on-prem solutions due to the high computing capabilities of virtual machines. With real-time data analysis, employees can make swift adjustments and optimizations in the production line to increase efficiency and cut costs further. Advanced analytics tools in the cloud also enable employees to visualize the data to better understand the big picture and make managerial decisions.
3) Collaboration & Communication
Cloud is all about collaboration. On-premise solutions usually offer outdated collaboration tools that do not allow real-time effective teamwork. Collaboration tools in the cloud make it possible for teams to work together simultaneously, regardless of their time and location. The cloud offers enhanced communication tools like video conferencing that further increase real-time collaboration and operational efficiency. Team members can share reports, send notifications, leave comments and feedback, and authorize access to documents for relevant parties. With seamless 3rd party integrations, employees can choose their preferred tools, boosting collaboration and communication efforts across platforms.
4) Cost Reduction
Cloud solutions’ unprecedented benefits have been proven in different sectors. However, it is a game changer for the consumer goods industry. Costs of infrastructure, maintenance, and overhead can be a huge burden and can determine the survival of a consumer goods company in an environment where there is a high market/cost unpredictability. Cloud obliterates these high infrastructure/maintenance costs and enables enterprises to allocate their investment in fields where they need the most. It also helps companies reduce software licensing costs with all-inclusive plans, eliminating the need to pay for multiple software. Due to enhanced collaboration and communication, operational resilience, and reduced downtimes, consumer goods companies can further avoid additional costs and enjoy the cost optimization that cloud solutions unlock.
5) Innovation
The cloud is an innovation booster: seamless collaboration, efficient operations, enhanced security, and reduced costs allow consumer goods firms to channel their resources into R&D, creating the proper foundation for innovation. Cloud solutions also enable companies to rapidly develop and test new products without requiring extensive infrastructure setup. This agility accelerates innovation efforts and reduces the average time to introduce new products to the market. For example, a cosmetics company can use cloud-based tools to rapidly develop and test new formulations for hand lotions, minimizing the time required to launch innovative healthcare products. With cloud-native technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), companies can create innovative products as well as unique consumer experiences. Also, with enhanced data analysis, project managers can broaden their horizons in the business, which can spark creative ideas and methodologies.
6) Digital Presence
In today’s highly digitalized world, digital presence is not a preference but a must. However, it is hard to maintain for the consumer goods sector due to high traffic, changing trends and platforms, and fierce competition. The cloud can boost the digital presence of organizations tremendously with services such as enhanced website hosting, content management systems (CMS), and social media integrations. Content delivery networks (CDN) also improve the delivery of images, videos, and other related media content, enhancing website performance. Cloud-based marketing automation tools empower marketing campaigns by enabling effective planning and monitoring for marketers. Cloud also provides SEO tools and insights for company websites and social media channels that help optimize keywords and content that continuously improve the digital visibility of the organization.
7) Cyber Security
Data breaches and their damaging consequences are increasing each given day, with hackers finding innovative ways to steal valuable company and user data. Cloud computing allows seamless data encryption to securely store and transfer important company/user data across platforms, protecting against exposure. Cloud-based services often provide automatic system security updates, assuring that there are no weaknesses in cloud security. While multi-factor authentications (MFA) add an extra layer of protection to user accounts, cloud-based threat detection systems monitor traffic and identify potential threats. Authorization options of cloud systems also enable effective management of users with access to sensitive documents and company data.⭐⭐⭐
Today’s consumer goods industry faces many challenges, which include ongoing competition, shrinking margins, increasing regulations, and the predicament of keeping traditional company values and being innovative simultaneously. These challenges require efficient and effective marketing efforts to remain competitive and reach targets. As consumer goods professionals, creating an omnichannel brand experience, building strengthened customer loyalty, building consistent and reliable supply chain distribution, having solid data granularity, and investing substantially in a reliable infrastructure are pertinent. As Kartaca, we’ve assembled an unprecedented level of hands-on talent under one roof to create perfect solutions for our customers. Our team of 30+ software, network, and data engineers makes precise touches to our customer’s pain points and offers lifelong solutions. Our team is trained on Google Cloud products, concepts, use cases, etc. Their technical skills to solve real-world IT challenges are validated regularly through certifications. Kartaca provides you with the tools and technologies you need for leveraging your competitive advantage with loyalty solutions, omnichannel marketing tools, e-commerce infrastructure, unified data solutions and segmentation, and consultancies to help you make the right choices in your IT ecosystem. If you would like to know more about how Kartaca can add value to your business and your daily operations, please check this page and contact us.Kartaca is a Premier Partner for Google Cloud in the Sell and Service Engagement Models with “Cloud Migration” and “Data Analytics” specializations.
TL;DR
How have cloud technologies been transforming businesses across sectors, as discussed in the article?
Cloud technologies have been driving a significant transformation in various industries by revolutionizing the way businesses operate. Over the past decade, cloud solutions have become essential tools that enhance collaboration, streamline operations, enable data-driven insights, and foster innovation. The ability to access resources, applications, and data remotely through the cloud has led to increased efficiency and flexibility in business processes. From consumer goods to finance and beyond, cloud technologies have fundamentally changed the way companies conduct their operations and interact with their customers.
How has the consumer goods industry been impacted by cloud technologies?
Cloud technologies have significantly impacted the consumer goods industry by addressing challenges like post-Covid uncertainty, changing consumer preferences, and the rise of digital engagement. Cloud solutions offer capabilities such as agile data-driven marketing, accelerated product ideation, and digital integration, enabling consumer goods companies to adapt to market changes efficiently.
What benefits does the cloud offer in terms of operational efficiency?
The cloud enhances operational efficiency in the consumer goods sector by providing omnichannel tools for various business aspects, including inventory management, CRM, data management, and HR. Cloud tools enable real-time collaboration, saving time and money, and allowing businesses to optimize production based on shifts in global demand and changes in consumer behavior.
How does the cloud contribute to innovation in the consumer goods industry?
The cloud serves as an innovation booster by facilitating seamless collaboration, efficient operations, enhanced security, and reduced costs. Cloud solutions allow companies to rapidly develop and test new products, accelerating innovation efforts and reducing time-to-market. Cloud-native tools like AI, ML, and IoT enable the creation of innovative products and unique consumer experiences.
How does the cloud enhance cybersecurity for consumer goods companies?
Cloud computing enhances cybersecurity by providing seamless data encryption, secure storage, and transfer of important company and user data across platforms. Cloud-based services offer automatic security updates, multi-factor authentications (MFA), and threat detection systems, protecting against data breaches and unauthorized access to sensitive documents and company data.
Author: Cem Cetinguc
Published on: Sep 18,2023
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