In the competitive world of consumer goods, sustainability matters more than ever. In recent Google survey, 82% of consumers said sustainability is more top of mind now than it was before COVID-19¹ and 78% said that big businesses have a role to play in helping to fight climate change.² As well as delivering on customers’ heightened expectations, sustainable business practices can help organizations reduce waste and lower operational costs and even help attract top talent.

Not only is sustainability good for business performance and the bottom line, it’s great for the planet, too. And it’s something we care deeply about at Google. Since our earliest days, we have focused on developing services that significantly improve the lives of billions of people while operating our business in an environmentally sustainable way. In 2007, we were the first major company to become carbon neutral, and in 2017 we were the first to achieve 100% renewable energy. Today, we proudly operate the cleanest cloud in the industry. We’ve also been powering humanitarian, scientific, and environmental initiatives studying geospatial information and making it available for analysis via Google Earth Engine. 

Powering the future of responsible sourcing 

How does all this relate to CPG supply chains? The world relies on raw materials like palm oil, soy, and cocoa to produce the items we consume every day—such as coffee, chocolate, frozen foods, shampoo, toothpaste, cosmetics, and even household cleaning products. Yet as demand for these materials continues to grow, forests are under threat. Change is needed.

As sustainability moves further into the spotlight, in-demand crops face increased supplier scrutiny. Environmentally conscious companies want to know what percentage of their raw materials is sourced from deforestation-free suppliers—and how they can improve that number. Until recently, many CPG brands have found it hard to get real-time, reliable visibility into operations at a local supplier level, globally. 

Google Cloud, in partnership with NGIS, is helping brands gain a deeper understanding of raw material sourcing practices across supplier networks, so they can improve supplier performance and compliance in the fight against deforestation. The TraceMark solution, developed by NGIS, uses Google Earth Engine and BigQuery to analyze and visualize how suppliers behave over time. 

Google Earth Engine is the world’s largest archive of open Earth data. It combines a multi-petabyte catalog of satellite imagery and geospatial datasets with planetary-scale analysis capabilities to help people detect changes, map trends, and quantify differences on the Earth’s surface.With Earth Engine, organizations can analyze the potential social, and environmental impacts of the decision they make. 

Together, TraceMark, Google Earth Engine and BigQuery help companies visualize, monitor, and measure the impact of suppliers’ farming practices. The process starts with Earth Engine, which aggregates and harmonizes planetary data into images that it has been collecting for decades. Then, boundary maps for different suppliers are created and NGIS applies climate data science and machine learning to turn pixels into insights. Finally, BigQuery and Vertex AI -Google Cloud’s unified artificial intelligence platform are used to produce supplier scoring, which is integrated into downstream ERP and procurement systems to support more informed decision-making.

These efforts support the responsible sourcing of raw materials by making supply chains more agile, transparent and traceable.

“NGIS is thrilled to work with Google Cloud and its partners to enable business accountability for sustainable practices at all levels of their supply chain,” said Nathan Eaton, Executive Director, NGIS. “Google Earth Engine provides unique geospatial capability that [gives] leaders visibility and control over their environmental footprint and that of their suppliers in a way that was not previously possible.” 

Unilever commits to working towards a deforestation-free supply chain 

Unilever is a great example of a company committed to using technology in the quest to become more sustainable. Since 2020, Unilever has partnered with Google Cloud to use data for eco-friendly decision-making, particularly when it comes to sustainable commodity sourcing. 

By combining the power of cloud computing with satellite imagery and AI, we’re helping Unilever build a more holistic view of the forests, water cycles, and biodiversity that intersect its supply chain. By gaining a complete picture of these ecosystems, Unilever can detect deforestation while simultaneously prioritizing critical areas of forest and habitats in need of protection.

The cleanest cloud for your sustainable transformation

We are excited to bring Google Earth Engine and NGIS to our CPG customers to help them meet their sustainability goals. Looking ahead, we’re committed to furthering our own ambitious sustainability goals and empowering CPG brands with the technology to do more for our environment and our shared future. 

Contact your cloud seller to learn more about Tracemark sustainable sourcing solutions and how Google Cloud can help you advance your sustainability initiatives.

Explore TraceMark on the Google Cloud Marketplace

To know more about how we are helping CPGs transform digitally read this ebook

<sup>1. Google/C Space, BR, FR, DE, IN, MX, U.K., U.S., qualitative survey activity, n = 528, Nov. 24–Nov. 26, 2020.
2. Google/Ipsos, Google Sustainability, BR, FR, DE, IN, JP, U.K., U.S., n=16,959 online population 18–70, July 2021.</sup>

Over 2.14 billion people worldwide are expected to buy online this year, according to Statista. Online retail sales will account for 22% of all purchases by 2023. But in a competitive retail landscape, positive interactions can mean the difference between a sale and an abandoned shopping cart.

One of the leading global marketplaces – Kinguin.net is a haven for gamers. Their bustling ecommerce business conducts over 500,000 new transactions monthly. Users will encounter over 50,000 unique digital products, from video games, gift cards, in-game items to computer software and services. With over 10 million registered users, Kinguin improved their experience by helping users find items quickly and deliver service at scale.

Helping customers find what they want, fast

Because of Kinguin’s high volume of users—both buyers and sellers—and breadth of digital products, browsing and shopping can be challenging. “Customers shop online for choice and convenience, but it can sometimes be overwhelming. We want anyone who shops at Kinguin to find what they are looking for quickly and easily,” says Viktor Romaniuk Wanli, Kinguin CEO and Founder.

Today’s retailers know that creating personalized shopping experiences is crucial for establishing and maintaining customer loyalty. Kinguin discovered their users were getting a rather standard retail experience. They wondered how they could offer them a more tailored, personalized experience.

They knew product recommendations were a great way to personalize experiences because they help customers discover products that match their tastes and preferences. But it’s not that easy to recommend products. Various shifting factors make recommendations much more complex:

• Customer behavior. Understanding customers is tough. How do you recommend something to a cold start user who’s never been to your site before? What happens when their behavior changes?
• Omnichannel context. According to Harvard Business Review, 73% of all customers use many channels when they buy. What happens when they go from desktop to mobile or from social media shopping to a proprietary app?
• Product data challenges. How do you recommend new products within a large catalog of items? What if your product data has sparse labeling or unstructured metadata?

Data wasn’t a problem for Kinguin. They had data orders, history, wishlists, and could collect events based on their platform interactions. It was the machine learning model expertise they lacked. So rather than building their own solution, they determined it was more cost effective for them to find a reliable partner. It was also essential that the solution integrated easily with Kubernetes, which enabled their global network.

With these considerations in mind, they applied for the Google Recommendations AI beta program. Kinguin became the first gaming e-commerce platform in Europe to use Recommendations AI when it launched in 2020.

Pro gamer move: using a fully managed AI service 

Google Recommendations AI uses algorithms to deliver highly personalized suggestions tailored to a customer’s preferences. Google Cloud based these algorithms on the same research that powers models by YouTube search and Google Shopping. Algorithms are always being tuned and adjusted to focus on individuals themselves—not just items.

Many shopping AIs rely on manually provisioning infrastructure and training machine learning models. Instead, Recommendations AI’s deep learning models use item and user metadata to gain insights. It processes Kinguin’s thousands of products at scale, iterating in real time. First, Kinguin pieces together a customer’s history and shopping journey. Then, using Recommendations AI, they can serve up personalized products—even for long-tail products and cold-start users. 

By leveraging internal tools, Kinguin didn’t need to start implementation from scratch. After a few trial sessions with Google Cloud engineers, they got started right away. Due to the fast-paced nature of a marketplace—i.e., price changes, out-of-stock items—Kinguin needed their recommendations to be as close to real time as possible. They used internal event buses to stream events and their product catalog directly to the recommendations API.

Kinguin rolled out in high-traffic areas, including their home page, product page, and category pages. They analyzed heat maps and scroll maps to figure out where to test placements. They also experimented with different recommendation models such as “recently bought together” and “you may like.” Engineers also factored in where they were implementing the models. For example, the “others you might like” model would fit best on the homepage, while “frequently bought together” made sense at checkout.

Understanding how product recommendations influence financials is critical for demonstrating the impact of personalization. Using BigQuery, Kinguin could analyze different cost projection models. BigQuery helped them dig into specific financial data to understand their margins and revenue gains.

Playing to win: enhanced customer experience

Since adopting Recommendations AI, Kinguin has improved both customer experience and satisfaction. Search times have shortened by 20 seconds. Additionally, their average cart value has increased by 5 EUR. Conversion rates have quadrupled since the outset. Click-thru rates have doubled, increasing by 2.16 on product pages and 2.8 times on recommendations pages.

“Google Recommendations AI has helped us evolve our service, increase customer loyalty and satisfaction. It has also contributed to a significant rise in sales,” says Wanli. Kinguin is already thinking about other ways of enhancing user experiences with recommendations. Ideas include their checkout process, other landing pages, and email marketing.

Kinguin’s journey with Google Cloud shows how companies can leverage AI to optimize sales and deliver high-performing, low-latency recommendations to any customer touchpoint. 

Learn more about Recommendations AI and Google Cloud AI and machine learning solutions.

The Home Depot, Inc., is the world’s largest home improvement retailer with annual revenue of over $151B. Delighting our customers—whether do-it-yourselfers or professionals—by providing the home improvement products, services, and equipment rentals they need, when they need them, is key to our success.

We operate more than 2,300 stores throughout the United States, Canada, and Mexico. We also have a substantial online presence through HomeDepot.com, which is one of the largest e-commerce platforms in the world in terms of revenue. The site has experienced significant growth both in traffic and revenue since the onset of Covid-19.

Because many of our customers shop at both our brick-and-mortar stores and online, we’ve embarked on a multi-year strategy to offer a shopping experience that seamlessly bridges the physical and digital worlds. To maximize value for the increasing number of online shoppers, we’ve shifted our focus from event marketing to personalized marketing, as we found it to be far more effective in improving the customer experience throughout the sales journey. This led to changing our approach to marketing content, email communications, product recommendations, and the overall website experience.

Challenge: launching a modern marketing strategy using legacy IT

For personalized marketing to be successful, we had to improve our ability to recognize a customer at the point of transaction so we could—among other things—suspend irrelevant and unnecessary advertising. Most of us have experienced the annoyance of receiving ads for something we’ve already purchased, which can degrade our perception of the brand itself. While many online retailers can identify 100% of their customer transactions due to the rich information captured during checkout, most of our transactions flow through physical stores, making this a more difficult problem to solve.

Our old legacy IT system, which ran in an on-premises data center and leveraged Hadoop, also challenged us since maintaining both the hardware and software stack required significant resources. When that system was built, personalized marketing was not a priority, so it took several days to process customer transaction data and several weeks to roll out any system changes. Further, managing and maintaining the large Hadoop cluster base presented its own set of issues in terms of quality control and reliability, as did keeping up with open-source community updates for each data processing layer.

Adopting a hybrid approach

As we worked through the challenges of our legacy system, we started thinking about what we wanted our future system to look like. Like many companies, we began with a “build vs. buy” analysis. We looked at several products on the market and determined that while each of them had their strengths, none was able to offer the complete set of features we needed.

Our project team didn’t think it made sense to build a solution from scratch, nor did we have access to the third-party data we needed. After much consideration, we decided to adopt a solution that combined a complete rewrite of the legacy system with the support of a partner to help with the customer transaction matching process.

Building the foundation on Google Cloud

We chose Google Cloud’s data platform, specifically BigQuery, Dataflow, DataProc, Cloud Storage, and Cloud Composer. Google Cloud platform empowered us to break down data silos and unify each stage of the data lifecycle from ingestion, storage, and processing to analysis and insights. Google Cloud offered best-in-class integration with open-source standards and provided the portability and extensibility we needed to make our hybrid solution work well. The open standards of BigQuery’s BQ Storage API allowed us to leverage fast BQ storage layers to be utilized with other compute platforms, e.g., DataProc.

We used BigQuery combined with Dataflow to integrate our first- and third-party data into an enterprise data and analytics data lake architecture. The system then combined previously siloed data and used BigQuery ML to create complete customer profiles spanning the entire shopping experience, both in-store and online.

Understanding the customer journey with the help of Dataflow and BigQuery

The process of developing customer profiles involves aggregating a number of first- and third-party data sources to create a 360-degree view of the customer based on both their history and intent. It starts with creating a single historical customer profile through data aggregation, deduplication, and enrichment. We used several vendors to help with customer resolution and NCOA (Change of Address) updates, which allows the profile to be house-holded and transactions to be properly reconciled to both the individual and the household. This output is then matched to different customer signals to help create an understanding of where the customer is in their journey—and how we can help.

The initial implementation used Google Dataflow, Google’s streaming analytics solution, to load data from Google Cloud Storage into BigQuery and perform all necessary transformations. The Dataflow process was converted into BQML (BigQuery Machine Learning) since this significantly reduced costs and increased visibility into data jobs. We used Google Cloud Composer, a fully managed workflow orchestration service, to help orchestrate all data operations and DataProc and Google Kubernetes Engine to enable special case data integration so we could quickly pivot and test new campaigns. The architecture diagram below shows the overall structure of our solution.

Taking full advantage of cloud-native technology

In our initial migration to Google Cloud, we moved most of our legacy processes in their original form. However, we quickly learned that this approach didn’t take full advantage of the cloud-native and more improved features Google Cloud offered such as auto scaling of resources, flexibility to decouple storage from the compute layer, and a wide variety of options to choose the best tool for the job. We refactored our Hadoop-based data pipelines written in Java-based Map Reduce and our Pig Latin jobs to Dataflow and BigQuery jobs. This dramatically reduced processing time and made our data pipeline code concise and efficient.

Previously, our legacy system processes ran longer than intended, and data was not used efficiently. Optimizing our code to be cloud-native and leveraging all the capabilities of Google Cloud services resulted in reduced run times. We decreased our data processing window from 3 days to 24 hours, improved resource usage by dramatically reducing the amount of compute we used to possess this data, and built a more streamlined system. This in turn reduced cloud costs and provided better insight. For example, DataFlow offers powerful native features to monitor data pipelines, enabling us to be more agile.

Leveraging the flexibility and speed of the cloud to improve outcomes

Today, using a continuous integration/continuous delivery (CI/CD) approach, we can deploy multiple system changes each week to further improve our ability to recognize in-store transactions. Leveraging the combined capabilities of various Google Cloud systems—BigQuery, DataFlow, Cloud Composer, Dataproc, and Cloud Storage–we drastically increased our ability to recognize transactions and can now connect over 75% of all transactions to an existing household. Further, the flexible Google Cloud environment coupled with our cloud-native application makes our team more nimble and better able to respond to emerging problems or new opportunities.

Increased speed has led to better outcomes in our ability to match transactions across all sales channels to a customer and thereby improve their experience. Before moving to Google Cloud, it took 48 to 72 hours to match customers to their transactions, but now we can do it in less than 24 hours.

Making marketing more personal—and more efficient

The ability to quickly match customers to transactions has huge implications for our downstream marketing efforts in terms of both cost and effectiveness. By knowing what a customer has purchased, we can turn off ads for products they’ve already bought or offer ads for things that support what they’ve bought recently. This helps us use our marketing dollars much more efficiently and offer an improved customer experience.

Additionally, we can now apply the analytical models developed using BQML and Vertex AI to sort customers into audiences. This allows us to more quickly identify a customer’s current project, such as remodeling a kitchen or finishing a basement, and then personalize their journey by offering them information on products and services that matter most at a given point through our various marketing channels. This provides customers with a more relevant and customized shopping journey that mirrors their individual needs.

Protecting a customer’s privacy

With this ability to better understand our customers, we also have the responsibility to ensure we have good oversight and maintain their data privacy. Google’s cloud solutions provide us the security needed to help protect our customers’ data, while also being flexible enough to allow us to support state and federal regulations, like the California Customer Privacy Act. This way we can provide a customer the personalized experience they desire without having to fear how their data is being used.

With flexible Google Cloud technology in place, The Home Depot is well positioned to compete in an industry where customers have many choices. By putting our customers’ needs first, we can stay top of mind whenever the next project comes up.

The last few years have underscored the importance of speed in bringing new drugs and medical devices to market, while ensuring safety and efficacy. Over this time, healthcare and life sciences organizations have transformed the way they research, develop, and deliver patient care by embracing agility and innovation.

Now, the industry is set to reap the benefits of cloud technology and overcome the existing barriers to innovation.

What’s holding back innovation?

Costly clinical trials: The process of trialing and developing new drugs and devices is still long and costly, with more than 1 in 5 clinical trials failing due to a lack of funding.1 The high failure rate comes as no surprise when you consider the average clinical trial costs $19 million and takes 10-15 years (through all 3 phases) to be approved.2

Stringent security requirements: Pre-clinical R&D and clinical trials use large volumes of highly sensitive patient data – making the life sciences industry one of the top sectors targeted by hackers.3 On top of this, the FDA and other regulatory bodies have strict requirements for medical device cybersecurity.

Unpredictable supply chains: Global supply chains are becoming increasingly complex and unpredictable. This can be brought on by anything from supply shortages, to geo-political events, and even bad weather. Making things worse is the lack of visibility into medical shipment disruptions – so when disaster strikes you’re often caught off guard.

Google Cloud for life sciences

At Alphabet, we’ve made significant investments in healthcare and life sciences, helping to tackle the world’s biggest healthcare problems, from chronic disease management, to precision medicine, to protein folding.

Together with Google, you can transform your life sciences organization and deliver secure, data-driven innovation across the value chain.

• Accelerate clinical trials to deliver life-saving treatments faster and at less cost. Clinical trials require relevant and equitable patient cohorts that can produce clinically valid data. Solutions like DocAI can enable optimal patient matching for clinical trials, helping organizations optimize clinical trial selection and increase time to value. How that patient data is collected is also important. Collection in a physician’s office captures a snapshot of the participant’s data at one point in time and doesn’t necessarily account for daily lifestyle variables. Fitbit, used in more than 1,500 published studies–more than any other wearable device–can enrich clinical trial endpoints with new insights from longitudinal lifestyle data, which can help improve patient retention and compliance with study protocols. We have introduced Device Connect for Fitbit, which empowers healthcare and life sciences enterprises with accelerated analytics and insights to help people live healthier lives. We are able to empower organizations to improve clinical trials in key ways:

1. Enable clinical trial managers to quickly create and launch mobile and web RWE collection mechanism for patient reported outcomes
2. Enable privacy controls with Cloud Healthcare Consent API and, as needed, remove PHI using Cloud Healthcare De-identification API
3. Ingest RWE and data into BigQuery for analysis
4. Leverage Looker to enable quick visualization and powerful analysis of a study’s progress and results

• Ensure security and privacy for a safe, coordinated, and compliant approach to digital transformation. Google Cloud offers customers a comprehensive set of services including pioneering capabilities such as BeyondCorp Enterprise for Zero Trust and VirusTotal for malicious content and software vulnerabilities; Chronicle’s security analytics and automation coupled with services such as Security Command Center to help organizations detect and protect themselves from cyber threats; as well as expertise from Google Cloud’s Cybersecurity Action Team. Google Cloud also recently acquired Mandiant, a leader in dynamic cyber defense, threat intelligence and incident response services.

• Optimize supply chains and enhance your data to prepare for the unpredictable. With a digital supply chain platform, we can empower supply chain professionals to solve problems in real time including visibility and advanced analytics, alert-based event management, collaboration between teams and partners, and AI-driven optimization and simulation.

Ready to learn more? We’ll be taking a deep dive into each of the challenges outlined above in our life sciences video series. Stay tuned.

1. National Library of Medicine
2. How much does a clinical trial cost?
3. Life Sciences Industry Becomes Latest Arena in Hackers’ Digital Warfare