Digital Transformation and AI Are No Longer Optional for FMCG & Manufacturing Players

Intro

MIFB 2025, Panellist Sharing on 1/8/2025

Sharing By Chong Ming Chuan, Founder & CEO, MC Crenergy

In today’s fast-paced market, the biggest risk for companies in the fast-moving consumer goods (FMCG) and manufacturing, especially those involved in retail, success is no longer about who produces more. It’s about who reacts faster, operates smarter, and connects deeper with the market & consumers. However, many businesses are still stuck in outdated processes, manually juggling data across spreadsheets, using WhatsApp messages and siloed systems for work arrangement. This is not only slows them down the business process but also puts them at a serious disadvantage against faster, smarter competitors.

Having supported countless businesses in the retail-driven FMCG and manufacturing industries, Mr Chong (Founder/ CEO of MC Crenergy) have seen the first-hand how small changes in digital adoption, especially using AI can yield big results to FMCG / Manufacturing businesses. Additional finding, according to Business Times recent updates in 2025, there are many Malaysian Small Businesses Accelerate with Digital Adoption to enhance business & drive growth. A recent survey reveals that 71% of Malaysian small businesses experienced growth in 2024, marking the highest expansion in over a decade. This surge is largely attributed to increased technology adoption and digital innovation. The key highlights from the study, there are 64% of business owners are under 40, contributing to agile decision-making and a stronger focus on innovation as well as digital adoption. In addition, AI investment more than doubled, which rising from 11% in 2023 to 27% in 2024. Furthermore, the adoption of digital and mobile payments by businesses and consumers is now mainstream, with 78% of businesses earning over 10% of sales through platforms like GrabPay, Touch ‘n Go, and Boost. Therefore, the survey underscores that Malaysian SMEs are embracing digital transformation faster than expected, even ahead of the government’s five-year AI roadmap which strengthening Malaysia’s position in the regional economy.

Next, let’s talk about the real-world challenges of these businesses facing, and why embracing digital solutions is no longer a luxury, but is a necessity & must!

🚨The Real Challenges Holding Back FMCG Businesses

1.Excessively Manual Processes That Waste Time & Resources

Many companies still rely heavily on manual work, from processing Sales/ Purchase orders to updating inventory or generating reports. For instance, sales person will take down customers sales order, conduct inventory counts via paper or WhatsApp messages. Additionally, they may need to send a sales order form or email back to the sales administrator at headquarters. The sales admin will then need to re-enter the customer sales order into the system/manually record it. In addition, sometimes the sales admin may need to double confirm prices, order quantities, and promotions with the salesperson again. All of these processes are time-consuming, and excessive repetitive workflows can easily lead to errors, duplication, and wasted work hours.

2. Reporting That’s Slow, Inaccurate, and Outdated

When reports are compiled manually from different teams or files, it often takes days to pull together a clear picture. As it may delays management to response fast and making strategic decision to tackle market changes & avoid risk. Whereby slow reactions to fast-moving market trends, you may lost the business opportunities & tuning your customers to competitors products, if you are running out of stocks during festive seasons.

3. Lack of Real-Time & Delays In Market Response Cause Sales Losses Sales

In the current landscape, trends change overnight. If your data is only updated weekly or monthly, you’re already too late to compete with other brands, your competitor has swept up the market share. Also, for the business still practising using the outdated or mismatched data can be dangerous. Without accurate insights into sales, inventory, or promotions, teams are flying blind. It makes hard for demand and stock planning which unable to meet market demand, or serve customers effectively.

4. High Labour Costs, But Low Operational Efficiency

Many businesses are hiring more individuals due to the significant manual labor involved. However, hiring more staffs to manage inefficient processes does not address the root cause and instead raises operational expenses. However, many similar-sized companies in the same industries can operate more efficiently than others. This is because they have started embracing digital solutions that assist employees in accomplishing jobs that could be automated with digital solutions that need minimum investment and are more efficient. Instead of hiring more than 10 admin assistants to enter sales orders, FMCG / Distribution businesses can manage their sales & operations more efficient by adopting digital sales system such as DATANORY Salesforce Management System, this solutions has been proven by many MNCs and SMEs that helps to improve sales orders management, retail customer management, sales person performances, inventory, good return, payment collection & more.

How AI and Digital Solutions Make the Difference

Based on the survey report that we mentioned at the beginning. Companies that invest in digital solutions, especially those powered by AI, they are seeing a clear competitive edge. However, it doesn’t mean breaking the bank for the investment. However, many business also failed the digital adoption due to lack of knowledge and experts to lead this transformation journey. Therefore, the questions from the participants did catch the attention for everyone. Whereas the speaker Mr. Chong sharing some insightful advises such as:-

✅ Start Small, Scale Smart

Businesses don’t have to revamp everything at once. However, they should always begin by focusing on one area, such as sales order processing, and then progress to reporting, inventory, or sales promotions as your business becomes more solid with the changes and updates to digital implementation.

✅ Make Data Work For You

Managing your own DATA is extremely important, as AI rely on massive DATA to provide accurate Business Analysis. Whereby giving a business with instant insights into customer behavior, stock levels, and sales performance, so that business owners can response fast to market needs, reduce waste, and avoid overstocking which causing losses. FMCG businesses with AI-driven alerts and trend analysis, they can capture shifts in demand as they happen, not after they’ve passed. This analysis and insight gives your team the confidence to respond swiftly and accurately.

✅ Improve Efficiency, Reduce Costs

By automating repetitive tasks and streamlining workflows,you may increase the overall productivity of the team and process. Optimize the process from sales to delivery, gain clear visibility into inventory levels and team performance, reduce manual / human errors, and increase B2B & B2C customer satisfaction.

💼 Real Business Gains You Can Expect

When companies in Manufacturing, FMCG, Distribution, or Retail start adopting AI and digital tools, they can unlock tangible, measurable benefits across their operations.

✅ 1. Shorter Order Cycles
Distribution sales team can assist customer placing orders faster, the sales order can be proceed to system to fulfillment with fewer delays and touchpoints. Most importantly, your sales team will not have to do double work. The digital sales system can also help your sales team ensure that orders are automatically validated. (e.g., stock check, pricing rules). Therefore, sales team will have more time to visit more outlets to generate more profit without all the manual & double work.

✅ 2. Lower Labour Costs
With the AI advanced technology, many manufacturing business increase their capability to handle more orders and driving more profits. For example, AI able to automating repetitive tasks such as, stock checking, auto approval flows, error/ risk detection, report compilation and etc. With reports generated in real time, businesses can better manage and plan their inventory to meet market demand while reducing excess inventory. Besides, the company can do more with fewer people or free up existing employees to focus on higher-value work.

✅ 3. More Effective Trade Promotions
AI is playing a very important role in boosting efficiency and profitability within the retail distribution space. One notable example is DATANORY AI Merchandising Solutions, which can generate key reports, such as OSA (On-Shelf Availability), SOS (Share of Shelf), and OOS (Out-of-Stock) within seconds. This level of speed and accuracy far surpasses traditional manual efforts by field staff, who would otherwise spend longer time conducting shelf audits and calculating compliance manually.

According to Mr. Chong, organising and managing planograms is very critical for retail distribution business, Every movement of a product on the shelf can influence performance, including, Sales performance, Good Return, Replenishment cycles, Product visibility, Planogram compliance. All of these elements is deeply interconnected. A delay or inaccuracy in reporting can affect the brand’s ability to respond effectively to market demand. That’s why accuracy and speed in compiling shelf audit reports are essential for brand owners who want to stay competitive and maximise in-store performance. Also, FMCG brand uses sales data & the planogram reports to optimize in-store promotions and focus efforts on fast-movers to boost sales & revenues with less discounting waste.

✅ 4. Stronger Control Over Inventory
With the help of AI and real-time data, businesses can now track exactly what they have in stock, the frequency of the inventory movement, where it’s located, and when to restock, without the risk of overstocking or running out of key items. Therefore, with the AI-powered inventory systems can also forecast demand based on seasonal trends and historical sales patterns. This means purchasing teams can plan more accurately, reduce excess stock, and avoid holding slow-moving items.

In addition, automated alerts notify your team when stock is low or nearing expiry, helping to minimise wastage and avoid missed sales. Most importantly, this allows businesses to maintain optimal inventory levels, keep costs under control, and ensure customers always find the products they need on the shelf.

✅ 5. Greater ROI (Return on Investment)
Digital transformation is no longer just a cost — it’s an investment that pays off fast. Every ringgit or dollar spent on the right tools can drive clear returns through cost savings, improved productivity, and increased revenue.

With automation in place, businesses make fewer mistakes, spend less time on rework, and operate more efficiently across departments. AI also helps teams make smarter decisions using real-time data, reducing risks and improving accuracy in areas like sales forecasting, pricing strategy, and inventory control.

Digital Transformation Isn’t Just About Keeping Up, It’s About Getting Ahead

These aren’t just “nice-to-have” improvements. They’re critical levers that determine whether a company stays relevant, profitable, and competitive in today’s dynamic market.

Any FMCG or Manufacturing Business that wants to scale while reducing cost and increasing responsiveness with AI, they should start with just one process and grow from there. The returns will speak for themselves.

Important Practical Advice from the CEO, Start Small, But Start Smart

During the session, Mr. Chong Ming Chuan, CEO of MC Crenergy, encouraged businesses of all sizes to begin their digital transformation journey even if it’s on a small scale.

He emphasized that adopting digital or AI solutions isn’t just for large enterprises. In fact, many businesses across various industries have already proven that even modest improvements can deliver measurable gains in efficiency, cost savings, and competitiveness.

“It doesn’t matter whether your business is big or small, what matters is knowing where to begin and why,” Mr. Chong shared.

Most importantly, he advised that before jumping into any digital or AI project, companies must be clear on:

✅ Their objective : what the company aim to improve or solve

✅ The specific issue : such as manual inefficiencies, slow reporting, stock wastage, or sales performance gaps

By identifying the pain point first, companies can then match the right digital tools to the right problems, ensuring their investment brings real, strategic value rather than just surface-level changes.This grounded, objective-driven approach is what helps businesses avoid digital fatigue and instead, build momentum toward smarter, more efficient operations.

Final Thoughts from the Sharing Session

This session was a great reminder that digital transformation isn’t about chasing trends, it’s about creating resilience. Whether you’re in FMCG, manufacturing, distribution, or retail, the challenges are real from manual processes and slow market response, to rising costs and data blind spots.

But the good news is: even small digital improvements can create real momentum. From streamlining sales order management to using AI for better forecasting and inventory control, the key is to start small, stay consistent, and scale what works.

A big thank you to the MIFB event team and our moderator for facilitating such an engaging discussion and to all the speakers who shared valuable tips, real-world examples, and insight for businesses looking to stay competitive in today’s digital landscape.

We hope the participants left with practical ideas and encouragement to take the next step in their digital journey, no matter how big or small.