People, Process, Technology Key Omni-Channel Success at FMI Midwinter
By Tom O'Reilly / February 2018Insights
Last month the food retail industry converged on Miami for the annual FMI Midwinter Executive Conference. Each year the Food Marketing Institute brings together executives from leading food retailers, wholesalers, CPG’s, and solution providers to discuss the latest industry challenges, trends and solutions in a rapidly changing retail marketplace. It’s also a great opportunity to visit with old friends and forge new ones over the four-day event.
This year’s conference included 20 education sessions, a record number of attendees, and over 50 industry experts focused on innovative solutions to disruptive threats from Amazon, discounters, and changing consumer behavior. Food retailers are keenly aware of the challenges ahead and are optimistic about the possibilities for growth, however many retailers are simply not yet equipped to compete effectively to take advantage of the opportunities that exist in this digital age.
To this point, FMI and Nielsen released findings from year two of the “Digitally Engaged Food Shopper,” research that focuses on actions CPG’s and food retailers can take to ready themselves in the new digital environment, and what is clear is they must act quickly. While the inaugural study predicted saturation of the digital food market in ten years, this year’s finding suggests that 70% of shoppers will regularly purchase groceries online within 5 years, with consumer spending reaching $100 Billion online.
Along three transformative areas: people, process, and technology, the report identified six organizational requirements retailers and manufacturers can focus on to be successful in both digital and physical spaces.
- Align Organizational Structures for Omni-channel Success: Integrate digital offerings seamlessly with brick-and-mortar operations.
- Address Discrepant Datasets: Clean data for errors, structure data in most efficient manner for validity and speed in order to support digital sales efforts.
- Integrate Forecasts to Increase Operational Efficiencies: Integrate online and offline forecasting to optimize order fulfillment paying special attention to e-commerce distribution strategies.
- Optimize Shopper Insights: Enable sharing of CPG and retailer shopper data together into a single, comprehensive view of customer segments and personas.
- Improve Marketing and Promotions: Optimize the management of omni-channel marketing and promotions.
- Merge Digital and In-Store Shelf Capabilities: Create seamless shopping experience either online or at the shelf, presenting the same information to the consumer wherever he/she decides to shop.
Collaboration between retailers, CPG’s, and technology solution providers are critical for retailers to stay nimble and adapt to shifting customer behaviors. Choosing the right provider to partner with is essential in order to build a strong foundation to develop these capabilities.
The Aptaris Enterprise Marketing and Promotions platform was designed specifically to meet these challenges. Our solution streamlines communication between retailer’s suppliers, marketing departments, merchandising, and finance; managing the entire marketing and promotions process – from implementation through analysis, all in one single technology platform.
Strategic promotions and pricing are critical for retailers to succeed and with Aptaris; forecasting, scenario planning, and data-driven decisions powered by dunnhumby customer science, benefit both retailers and vendors. Common areas of ROI include:
- 3-5% increase in profitability
- 30% increase in labor efficiencies through automation
- Increased vendor funds on promotions with measurable results
- Auditing expenses dramatically reduced
As retailers and CPG companies continue to develop their strategies and assess their own organizational readiness to meet the needs of the Digitally Engaged Food Shopper, it’s important to know that there are resources to help retailers prepare to meet these challenges to be successful. The FMI Midwinter Conference continues to be a great place to facilitate these conversations and Aptaris is here to support retailers and vendors along the way.
To learn more about Aptaris we invite you to reach out to speak with a member of our sales team.
Contributed by Tom O’Reilly, President and CEO, Aptaris
Tom has a deep understanding of the retail business from both the store and vendor perspectives. He brings decades of hands-on experience in advertising and promotions including new media innovations. As an entrepreneur, he has transformed each organization he has worked with. Tom is a forward-thinking leader with a history of driving innovation, growth and profitability. As an avid reader, Tom is always enthusiastically sharing cutting-edge ideas with clients and colleagues.