AI unboxed for CPGs: Harnessing the power of data with ADAM

April 29, 2024

Data Management and ADAM

AI stands poised to propel CPG (Consumer Packaged Goods) companies towards unprecedented profitability—but first, it must tackle a foundational challenge: ensuring impeccable data quality.

In the AI-augmented realm of Revenue Management, the timeless truth persists: quality in, quality out. Numerous AI (Artificial Intelligence) data models in the CPG sector are enigmatic black boxes, adeptly implemented but often lacking in industry and data comprehension, resulting in a cascade of substandard insights.

Yet, this is not an inevitable outcome. Forward-thinking CPG companies are trailblazing a path to crystal-clear data pipelines, ones where AI is embedded from the start, ensuring data is not only integrated but also purified, synchronized, and enriched. This sets the stage for solid, reliable Revenue Management analytics to inform the entire commercial cycle – from revenue growth strategies (RGM) to integrated business planning (IBP), trade promotion management (TPM), and execution at the field (retail execution).

Data Integration and Quality Enhancement

Melding together disparate data streams is critical but it is merely the first step. Trust in RGM analytics is built on data that is not just integrated but also scrupulously cleansed, harmonized, enriched, and organized. Traditional ETL processes fall short in effectively addressing 3 key aspects – they are not built to seamlessly integrate external data sources, execute complex data validation, and provide contextual business understanding. This is where specialized AI data models shine, weaving together a coherent story from disparate data threads and correcting inconsistencies with finesse.

Enter ADAM, our state-of-the-art AI engine, designed specifically to navigate the intricate weavings of FMCG’s business logic. Whether it is harmonizing data across various sales channels or syncing product hierarchies across diverse business units, ADAM excels. ADAM Data Qube serves advanced analytics with high-quality data, ready to use for revenue management purposes.

The tangible business impacts are stark. Take trade promotions as an example – ADAM has been known to identify and rectify over 25% of data misalignments due to discrepancies between internal and external data sources. It reveals promotions executed by retailers but undetected by FMCGs (Fast Moving Consumer Goods) because they are not part of their original promotional plans, which can often represent 15% to 25% of all delivered promotions. Correcting these oversights, which can equate to half of all promotions in each period for an FMCG company, is crucial for laying a solid foundation for true trade spend optimization, maximizing ROI, and driving strategic growth dialogues with retail partners.

The Automation’s Role in Data Readiness

For RGM strategies to be effective, they often depend on timely and fresh data to make timely, impactful decisions. Stale data is a barrier to market responsiveness. Traditional ETL processes often require human interaction and cannot match the pace required for timely RGM data analytics. Automation revitalizes your data pipeline, enabling adaptability to market and consumer dynamics.

ADAM’s automated, efficient data management system operates on less than 40% of the computational resources required by comparable systems, evidencing remarkable efficiency. As a result, CPGs can rely on higher data consistency and objectivity and have their skilled personnel focus on higher-value endeavours such as innovation and strategic planning.

The Clarity of Transparent AI-driven Data Pipelines

Black box AI models often leave professionals in the dark, struggling with results that are difficult to interpret. ETL tools, too, are ill-equipped to integrate these models directly into the data workflow. Building your own AI-assisted, automated data pipeline in-house is a potential solution, but it comes with its own set of risks and costs. A successful pipeline hinges on a high degree of cross-functional collaboration, and the sheer maintenance of your own solution can be a substantial financial burden.

This is where ADAM differentiates itself—providing transparent, state-of-the-art AI models that integrate seamlessly with your existing systems, allowing complete governance over the data pipeline and lifecycle. This empowers data experts to truly excel.

That is the rationale behind ADAM’s design—to equip CPG companies with the transparent, AI-advanced models they need to handle their data with the efficacy their business demands.

Beyond Transformation – The Data Impact on Advanced Analytics and KPIs

Feeding refined, fresh data into precise AI models unlocks the potential for advanced RGM analytics that many CPG companies have yet to realize.

This is where AI delivers on its promise to transform RGM, creating a raft of strategic opportunities, all underpinned by AI’s prowess in processing large volumes of data continuously. For example, ADAM can help you to achieve:

  • Smarter strategic pricing: Analyse sell-out data to discern subtle consumer buying patterns.
  • More profitable promotions: Delve deeper into promotional performance data to identify ways to enhance trade spend efficiency.
  • Optimized portfolio mix: Evaluate product sales data across portfolios to spotlight and address underperforming SKUs.
  • Enhanced trade profitability: Bolster your negotiating power with your trade partners with data-driven evidence.

Unleashing the Potential: ADAM and the Future of RGM Analytics in FMCG

In the competitive arena of Consumer-Packaged Goods, where every data point can unlock market advantages, the AI-driven ADAM stands as a paragon of innovation and precision. As the industry continues to pivot towards data-centric strategies, the need for tools that can not only handle but also enhance the quality and applicability of data becomes paramount.

ADAM, with its advanced AI algorithms, offers just that—a transformative approach to managing and leveraging data for Revenue Growth Management purposes. It is not merely about integrating data; it is about elevating its quality, intelligently validating it, automatically generating new data when necessary, and ensuring it is primed for strategic decision-making.

As the FMCG sector grapples with the complexities of RGM, ADAM emerges as a critical ally, enabling businesses to cut through the noise and focus on data that drives growth. With its unparalleled efficiency and the ability to unearth and correct data anomalies, ADAM ensures that your RGM strategies are built upon the most reliable and insightful data foundations.

For those eager to move beyond the limitations of traditional data management and to harness the full capabilities of AI in RGM, we invite you to engage with the second chapter of our AI for CPG series. This installment focused on “Elevating CPG Strategies: ADAM AI Models at Work,” promises to be an enlightening exploration of how cutting-edge, industry-centric AI models can redefine the landscape of FMCG analytics.

By delving into this series, you will gain insight into the intricacies of AI applications in the CPG sector and learn how ADAM can transform your data into a strategic powerhouse, driving not only profitability but also sustainable growth in an ever-evolving market.

Stay ahead in the game of data-driven Revenue Management with ADAM—where data is not just processed, it is empowered.


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