Bangladesh’s retail sector, home to nearly 14 lakh small fast-moving consumer goods (FMCG) outlets, has long struggled with ensuring consistent product availability due to the fragmented nature of the market.
In this diverse landscape, some areas see high demand for soap, while others prefer shampoo or toothpaste. Managing this variety of demand has traditionally been done through guesswork, estimates, and experience, but with changing market dynamics, these methods are increasingly proving ineffective.
To address these challenges, Unilever Bangladesh has launched IQ Nexus, an artificial intelligence (AI)-powered platform designed to optimise retail decisions. IQ Nexus aims to ensure that the right products are delivered to the right stores at the right time, using advanced neural network-based AI.
The platform analyses daily sales data, outlet visits, and consumer behaviour to make real-time decisions. This allows it to adapt to shifting demand trends, eliminating reliance on assumptions or outdated market models.
IQ Nexus was initially rolled out in Syedpur, Mirpur, Chandpur, Khulna, and Halishahar as part of a pilot project. The results were encouraging. Areas using IQ Nexus saw an increase in target achievement rates, reaching 71 per cent, compared to just 65 per cent in regions where the platform was not in use.
The system also contributed to a 6 per cent improvement in product variety and a 4 per cent improvement in supply depth, indicating its success in streamlining inventory management.
Retailers have reported a marked improvement in their operations thanks to IQ Nexus. By optimising inventory levels and preventing both overstocking and stockouts, retailers have improved cash flow.
For instance, Gazi Store witnessed an 18 per cent increase in sales after increasing product variety by 20 per cent. With real-time insights, retailers can now make data-driven decisions, ensuring they only stock the products that meet their customers’ needs.
Moreover, the role of field visits has evolved. Traditionally focused on order collection, these visits have transformed into consultative discussions. Armed with real-time data, sales teams can now advise retailers on which products to prioritise and which ones to phase out.
The data-driven approach has empowered the sales force to provide more effective guidance, improving efficiency in the supply chain.
IQ Nexus is also fully integrated with UCART, Unilever’s digital ordering app. Retailers can now easily view and order products that are most suited to their stores, based on the platform’s insights. This seamless integration simplifies the ordering process and ensures that retailers have the right stock available when they need it.
Looking ahead, IQ Nexus has the potential to expand its capabilities beyond just sales and stock management. The platform could analyse seasonal trends, local festivals, and weather-related shifts in demand. By incorporating these factors, it can provide even more accurate forecasts and further improve inventory management for retailers across Bangladesh.
In essence, IQ Nexus is more than just a technological solution. It represents a strategic move towards building a more predictable and stable retail ecosystem in Bangladesh.
By equipping both small rural stores and large urban outlets with the same data-driven insights, IQ Nexus ensures that the right products are always available to meet consumer demand, creating a more efficient and robust retail market.
Unilever Bangladesh Limited, a subsidiary of Unilever Global, has been a leading producer and marketer of FMCG products in Bangladesh for over six decades.
Trusted brands like Lux, Lifebuoy, Surf Excel, Closeup, Sunsilk, Ponds, Vaseline, and Dove are an integral part of daily life for millions of Bangladeshis.
With over 190 countries relying on Unilever Global for consumer goods, UBL continues to play a key role in shaping the country’s retail landscape.
