As quick commerce (Q-comm) gains prominence as the top-performing channel, major FMCG companies like Nestle, ITC, Parle Products, LT Foods, and Coca-Cola are swiftly adopting real-time data exchange and demand forecasting. This strategic move aims to prevent potential stock shortages on online platforms such as Blinkit (owned by Zomato), Swiggy Instamart, BBNow from BigBasket, and Zepto.
“Unless you don’t do stock replenishment at quick commerce in real time, you are missing out on opportunities. We are working on forecasting demand based on sales trends, even if quick commerce platforms are doing their own forecasting to ensure we can turn around stocks within hours at the dark stores,” said Mayank Shah, senior category head at biscuit and confectionery maker Parle Products.
Quick-commerce platforms, which ensure delivery to consumers within 10-20 minutes, account for 30-50% of the total e-commerce sales for FMCG companies. These companies are attracted to the commitment of swift delivery. For them, e-commerce has evolved into a significant sales channel, experiencing a twofold increase in size over the last two years and currently standing at 5-10%.
“Our quick commerce partners are prioritised for stock allocation to ensure better fill rates. Smaller load sizes have been actioned to cater to higher frequency of shipments,” said Sandeep Sule, divisional chief executive, trade marketing and distribution at ITC, which makes Sunfeast biscuits, Master Chef frozen snacks and Fiama soaps.
“We are evaluating real-time data exchange through electronic data interchange, for which, integration has been done with all the major quick commerce accounts for faster and digitised data exchange,” Sule said.
He mentioned that during peak-demand periods like the IPL cricket league, Cricket World Cup, and Diwali, ITC collaborates with online platforms to synchronize their purchases with the surge in demand.
A representative from Nestle India mentioned that quick commerce accounts for almost half of the company’s total e-commerce operations. The manufacturer of Maggi noodles and KitKat chocolates is collaborating with quick commerce partners to monitor inventory at distribution points. This enables the company to proactively manage stock and ensure product availability for consumers. Additionally, the spokesperson highlighted that Nestle is directly supplying products to distribution points in newly established towns.
Executives noted that quick commerce initially gained traction during the pandemic, as state lockdowns compelled consumers to shift their focus to online platforms for daily essentials. This trend has persisted, with consumers increasingly attracted to the convenience of rapid delivery, extending beyond impulse buys to include bulk purchases.
Ritesh Arora, CEO, India business and Far East at LT Foods, said, “With our quick-commerce contribution having increased rapidly, we are using technology to predict demand and avoid inventory stocking delays.”
