Digitizing the FMCG Supply Chain in Supporting MSME Development
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- Written by Hayfaza
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Fast-Moving Consumer Goods (FMCG) is an important aspect of trade transactions in Indonesia and around the world. MSME businessmen often engage in FMCG trading directly or transact with the FMCG industry. However, the FMCG industry contains complex aspects, hence it is needed to perform supply chain analysis, strengthening digitalization tools, data science, and the application of applied research methodologies. In contributing to the post-pandemic economic recovery, on Monday (4/7) International Week (iWeek) held a lecture entitled "FMCG Supply Chain Digitization for Micro and SMEs". This session's iWeek lecture was presented by Dr. Ying Li, a practitioner who is currently positioned as Chief Scientist at EV Analysis Corporation as well as serving as Chief Scientist Officer at AwanTunai.
Dr. Ying explained about the traditional FMCG trade that needs to be revolutionized through support of digitalization. Dr. Ying illustrates traditional trade with photos of traditional market traders (merchants) and product suppliers. Traditional trading is characterized by face-to-face transactions and offline recording of transaction data. In Indonesia, traditional traders account for 60% of FMCG sales, with 4 million retail outlets. Dr. Ying then explained the business needs in digitizing traditional FMCG supply chains, namely supplier inventory management, digital payments, order management for merchants through mobile applications, and the use of information systems and machine learning to avoid fraud. This is also what underlies AwanTunai's business operations in assisting the digitization of FMCG businesses.
Along with the implementation of digitalization above, FMCG businesses are expected to be able to manage data to compile product lines and map customer device networks which are the basis for optimizing the FMCG supply chain. The iWeek lecture session was continued by Dr. Ying with a data analysis assignment session with six questions as a case study. Lecturers are invited to discuss in order to develop the best solution for the six case study questions. At the end of the session, Dr. Ying then presented a reading list related to the lecture material as well as opened a question session.
Reportage: Hayfaza Nayottama
Watch the full video: https://youtu.be/tSXsChnbY1c
