In Indonesia, the development of the retail business is growing rapidly. This is based on the company’s desire to meet the needs of every level of society. The rapid development of retail is also supported by the very high number of Indonesia’s population, most of whom are of productive age.

From this situation, it makes Indonesia the most potential market for retail business. Currently, the modern retail industry for the Fast Moving Consumer Goods (FMCG) category in Indonesia is also growing rapidly. Fast Moving Consumer Goods or FMCG are products that run out quickly and usually consist of daily necessities, so they can be sold in a short time at a relatively low price.

Read more : The characteristic of retail business in Indonesia

FMCG products are numerous and easily found in the market, such as food and beverage products, toiletries, soap, shampoo, toothpaste, cosmetics, razors, detergents and medicines. The high demand for FMCG goods makes the FMCG industry market in Indonesia very promising. This is marked by the presence of large companies such as Nestle, Unilever, Garuda Food, Orang Tua, Mayora, and others. Even though it is classified as having rapid development, the FMCG business also has its own challenges in the digital era, such as:

  • FMCG businesses find it difficult to build new skills due to limited human and financial resources such as, when retail businesses want to switch to digital sales channels, it requires employees who understand information technology and technology. Meanwhile, more funding is needed to recruit competent human resources.
  • The number of online sales channels, from the website itself to the marketplace platform, makes it overwhelming to carry out administrative matters.
  • FMCG industry cannot maximize its sales strategy on various digital platforms, without compiling consumer data.
  • The key to the success of FMCG companies lies in two important aspects, namely speed and accuracy. This is closely related to the distribution of FMCG products to various locations. Currently, many digital media and technology have emerged, which are of course very beneficial for FMCG industry growth opportunities.

However, not all of the technologies chosen can provide an opportunity to win the competition. Therefore, executives at FMCG companies must be able to make accurate decisions to determine the right technology that can provide solutions. Technology must make it easy for business strategies to predict future businesses.

Well, here are things you should do to overcome various challenges in the FMCG business:

Collect and analyze reports

One aspect that cannot be separated from the FMCG company is the report. FMCG executives certainly need to know how sales are at each distribution location. However, teams in the FMCG industry often find it difficult to produce and compile reports because of the wide distribution location.

If the company still uses a manual system in making reports, it will waste a lot of time and reduce the productivity of teamwork both in the field and at the decision-making level.

Read more: The transformation of retail’s business trend in covid-19 pandemic

Good logistic management for FMCG industry

The existence of logistics management with all its functions is the main key to getting profit as expected. Therefore, with the application of professional logistics management, it is hoped that it will be able to maintain the availability of products and the necessary resources that the company has.

The main cause of all the failures that occur in FMCG companies is one of them because the logistics management system is too weak and unprofessional. If the logistics management system is not good enough, there will be uncontrolled procurement and a lack of regulation in the warehousing management system.

Chooses the right operational service

The lack of online fund distribution services, especially the system for distributing various funds, is an important thing to pay attention to. The existence of an appropriate fund distribution system allows FMCG industry to carries out many transactions directly to many vendors at one time.

Not only that, a safe and quality fund distribution system will also cut time to take care of many things related to payments, and the FMCG business will also be facilitated by having detailed transaction reports so that business financial reports can be made easily.

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