How CPGs can Soldier on During a Pandemic with Remote R&D
This is a writing sample from Scripted writer Brianna J
CPGs are currently facing a period of unprecedented interruption to workflow procedures, along with growing financial worries and supply chain issues. But rather than recoiling from the whirlwind of potential setbacks, companies can instead take a proactive approach, paying closer attention to supply chains and making data-informed decisions that will support both employee well-being and consumer trust. There has never been a better time to commit to data and machine learning technology that will substantially streamline product development. As remote work becomes a necessity, digital tools that can be accessed from anywhere will play a major role in every CPG's pandemic recovery plan.
Around the world, social distancing requirements and workplace shutdowns have halted not only the global economy but the daily labor of millions of people in various industries. The US stock market sunk to its worst crash since 1987, with the Dow Jones Industrial Average falling 10% and the S&P 500 and Nasdaq plummeting along with it. But with the threat of a global recession looming, the wisest companies are equipping themselves with concrete data that empowers decision-makers. In the weeks ahead, it will be critical that CPGs focus on proactive planning and strategies aimed at softening the financial blow of the Coronavirus. As Americans stockpile non-perishable foods, sanitizing supplies, and personal care goods, CPGs play a key role in providing peace of mind and stability in uncertain times.
Many of the hardest-hit areas of the globe play a key role in the global supply chain, leading to growing anxieties about dwindling stocks and broken contracts. For many companies, the residual impact of the virus will be unavoidable. As supply costs in China rise, individual companies will need to navigate their unique sourcing obstacles and locate alternative supplies. Despite the grim possibilities, there are plenty of action steps. CPGs can take to maintain control. By examining how manufacturers are responding, decision-makers can build their crisis response plan. For many, losses will be inevitable as supply costs spike or the virus erupts in new territories. Machine learning tools can assist CPGs in assessing the costs and risks associated with political, economic, and health changes, exchange rates, and more. In addition, these tools can help model alternative transport routes in the event of closed ports.
Turing’s AI is letting these companies know in minutes whether the substitute ingredient will impact the product quality. Due to current bottlenecks in the supply chain, CPGs must re-formulate products with available ingredients. “One of our customers re-formulated a home care product with available ingredients while optimizing for both cost and quality - all in 6 weeks rather than the 8-12 month norm.” - Manmit Shrimali, CEO of Turing Labs.”
In the past, product research and development sectors would have been completely incapacitated during a pandemic of this size. But thanks to game-changing advances in machine learning, remote R&D is not only possible but already saving many CPGs from major financial losses. At a time when e-commerce is overtaking brick-and-mortar sales, CPGs can use machine learning tools that allow them to function at the speed of a remote startup while eliminating internal data silos. With an elevated focus on health and sanitation, companies can tweak product formulations without risking time or money. Hundreds of products can be evaluated remotely from one platform.
The most innovative aspect of machine learning is that it illuminates your blind spots – Data sees what you don’t see. This is another crucial asset in an unprecedented time when companies are burdened with dozens of make-or-break decisions. CPGs need not sacrifice productivity or worker safety with a remote machine learning engine that finds optimum product formulations faster. Not only can operations continue, but innovation practices can carry on, safe from pandemic derailments that are costing other companies millions. While some are concerned about the distorting potential of the pandemic on historical data, others are calling it a learning opportunity – a time to develop more advanced machine learning algorithms that take outlier periods into account. Rather than manually erasing data from the time of the coronavirus (in hopes that it doesn’t impact the accuracy of future predictions), CPGs can save pandemic data and reference it when abnormal patterns occur again. Despite the financial upset and instability Coronavirus has caused, businesses can extract powerful insights from these tumultuous times. By observing and learning from this outbreak, CPGs can create solid protocols for future crises, know their supply chains more thoroughly, forge stronger trust with consumers, and harness machine learning to manage operations remotely in emergencies. With such a thorough learning curve taking place right now, CPGs are practicing resilience and becoming more flexible, sustainable organizations. To thrive in pandemic times, CPGs need to prioritize what matters most: granting safety to employees, serving immediate customer needs, and sustaining high-quality products.
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