Empowering General Trade Retailers /Kirana Stores through Track and Trace
Trade promotion is the most widely used marketing channel and one of the largest expenses for any company in the FMCG/Agriculture industry today. But, there is no denying the fact that their effectiveness to drive incremental sales has been at a constant decline, even as companies increase their expenditure. This is indeed a worrying trend, given that about 90% of the trade is dependent on small scale retailers in markets such as South-East Asia.
● Methods of promotion focus only on the quantity of the trades and not on the quality of support. For instance, distributors often deploy more retailers to meet sales targets, instead of letting trade promotion strategies improve the incremental sales per unit.
● In a bid to reach their own sales targets, distributors also often withhold information from retailers, especially the ones related to new trade promotion campaigns, thereby diluting their efficiencies.
Such unfair trade practices call for an efficient system that allows companies in the consumer packaged goods and agricultural industries to directly pass fair incentives to retailers without eliminating any middlemen.
The Track and Trace (UID) / Product Serialization system by Original4Sure makes this a reality by enabling companies to improve visibility into their supply chain. Here’s how this is done:
● We serialize products by providing them with a unique digital ID in the manufacturing process.
● Retailers are required to scan these IDs upon the delivery of the products in order to realize the trade incentives.
● Companies can verify the collected data to understand the market penetration of products and evaluate the effectiveness of their trade promotion campaigns.
And that’s not it. With the ‘Track and Trace’ capability, companies can also realize the following key benefits:
● Real-time Visibility: Original4Sure makes supply chain management a breeze using real-time inventory tracking. Companies can get a consolidated view of consignments in real-time and in accordance with the geography. They can then leverage the information accordingly for driving decisions.
● Understanding Product Movement: With increased insights about product movement, companies can better manage their warehouses with just-in-time ordering. Through complete knowledge of the supply chain, managers can get a better idea of when orders might need to be replaced.
● Product ownership tracking: At the retailers’ end, tracking would make it easy to initiate and undertake timely returns for unsold or damaged stock items. Hence, companies have increased understanding of their inventories at a localized level.
● Consumer Profiling: By empowering the consumers to check the authenticity of the products, the tool actively collects consumer data and analyzes it to extract actionable business insights.
Hence, it can be inferred that increased traceability into the movement of goods has a direct impact on the revenues of the company. Since it becomes imperative for retailers to scan the products in order to realize the benefits of the loyalty program, they are motivated to participate in the system. All they have to do is download an app and scan the products.
What issues have you faced in your supply chain management activities? Share them in the comments section below!