Tobi Adeniyi, Customer Supply Chain Director at Unilever Nigeria Plc, underscores the imperative for FMCG operators to embrace technological advancements and harness data analytics to optimize their operational efficiency.
Speaking as a panelist during the Nairametrics Industry Economic Outlook event, Adeniyi emphasized the pivotal role of technology and data integration in navigating the challenges and seizing the opportunities within the FMCG sector.
He highlighted the transformative impact of adopting technology and data-driven decision-making processes, stressing that such initiatives are essential for staying abreast of market trends and fostering innovation in operations.
Adeniyi elaborated on the necessity of transitioning from traditional methods to modern technological solutions, emphasizing the inherent inefficiencies of clinging to outdated practices in a rapidly evolving business landscape.
A plethora of AI-driven tools are available
Furthermore, Adeniyi underscored the plethora of AI-driven tools available in the market, such as Aera and Kinaxis, which facilitate rapid data analysis and interpretation, thereby optimizing resource utilization and enhancing decision-making capabilities.
Recognizing the financial considerations associated with implementing technological solutions, Adeniyi emphasized the need for a balanced approach that factors in both costs and operational scale.
He urged industry players to acknowledge the inevitability of this digital transformation and capitalize on tools that streamline supply chain management across various facets, including cost management, inventory control, and customer service enhancement.
Importance of integrating data-driven insights
Adeniyi concluded by emphasizing the critical importance of integrating data-driven insights with experiential knowledge, highlighting the complementary nature of technology and human expertise in optimizing supply chain operations effectively.
He cautioned against over-reliance on experience alone, underscoring the pivotal role of technology in driving sustainable operational excellence and maintaining competitiveness in the dynamic FMCG landscape.
Ogaga Ologe, Finance Director at Cadbury Nigeria Plc speaking at the Webinar noted the significance of understanding consumer behaviour and leveraging price elasticity as essential strategies for FMCG firms aiming to remain competitive and retain their customer base amidst escalating inflation.
He highlighted that the sector is particularly vulnerable to foreign exchange (FX) devaluation impacts, given its heavy reliance on imports for locally unavailable raw materials.
- “It is important to observe consumer behaviour and determine the price elasticity to remain competitive in the industry.
- “For us in FMCG, I think why we are mostly hit is that while other companies are not solely dependent on export or import into Nigeria, we are dependent on import because not all the materials are available in Nigeria. We are largely impacted by the FX devaluation.
- “Apart from that, you also see the cost of things in the country are rising; transportation costs have significantly increased; diesel cost is on the rise. Apart from FX rates, we are also impacted by other input costs that we use for production.
- “We use price elasticity to determine the volume we produce in a year because you have to plan your production process, plan your cost for the year,” he said.
