Mondelez explores partnership with ONDC

With technology changing the way FMCG players distribute their products, Mondelez India is looking at the option to partner with Open Network for Digital (ONDC) to increase consumer engagement.

“ONDC is the first of its kind. We will go where consumers go. If consumers engage with ONDC then we can’t not be there. How to participate in that is not clear as it is just launched in a few cities. We need to understand it better,” said Deepak Iyer, President of Mondelez India at the National FMCG Summit in Mumbai by the Confederation of Indian Industry.

Iyer added the ONDC platform would assist the distribution network and could change the way the world looks digital. “We do not look at distributors as an external set of bodies they are our extended families for us. They have helped us build the business. They know how to distribute much better than I would know and platforms like ONDC will help. The entire aspect is around partnership,” said Iyer.

T Koshy, CEO , ONDC stated there are opportunities for local producers to make products visible through ONDC.

“It will be prohibitively expensive to establish an alternative e-commerce operation in India. It can only be done by one or two people. However, through ONDC, the seller will be able to do so easily,” said T Koshy.

Premium trucks for product transport

To ensure that products have reached securely, Mondelez India has invested in premium refrigerators truck transportation that allows monitoring and control of temperature inside the truck from remote locations.

“There is a device inside the body of the truck which will monitor the temperature online every second and minute. We get to know what the temperature is. The moment it goes below a particular threshold it will alert our control tower regarding the particular truck. The driver will get a message and a call from our call center. The common phenomenon is to put off the truck but in our case, that will destroy our products. This is why we are paying a premium,” Iyer to businessline.

Inflation in dairy segment

With dairy prices increasing the company is optimizing cost.

“Dairy prices are going through the roof as there was lumpy skin disease because of which there was a flush. What we are living through is a super commodity cycle this does not go away in one or two years. There is a role we play in optimizing cost and managing prices versus volume. With such a high inflationary environment you cannot but have to pass some of it,” added Iyer.

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