Global standards for supply chain management in consumer. Assessing opportunities to reduce cycle times across the supply chain. Resourcebased view is a complement to the traditional emphasis of industrial eco. The road to 2025 6 cpg at the ipping point ow brands can in in the ew routes to arket knowing consumers and engaging oneonone with them represents power for brands and rocks the timehonored model of working through retailers as the middleman. Supply chain resources for consumer packaged goods one network for cpg and retail one networks solution for cpgretail optimizes, automates and tracks execution of the entire inbound and outbound logistics lifecycle, from order to delivery. Simply put, a retailer can be found at the end of the supply chain, but the cpg firm is one step below the end process since they manufacture the goods. Io can both advise on how to execute your next sampling program and execute it for you. Supply chain strategy is seldom stated explicitly, making it difficult to discuss a firm. Porter 3 points out that although many companies have gained operational. Amsterdam, 2017 fast moving consumer goods analytics framework point of view.
Excellent supply chains in the consumer packaged goods. At national sales and marketing, we are extremely pleased to offer our customers a one stop solution. With incremental improvements to existing distribution processes. Kumar worked with leading fortune 500 cpg firms and at a national retailer and apparel manufacturer. Consumers may demand more for health prevention and cleaning in the short term, and may reduce demand for some. Each of the projects is a joint effort between a sponsoring company, one or two students, and one or two faculty advisors. The report also shares specific action points for procurement teams to underpin the enterprises growth agenda. Reinventing the cpg supply chain with zerobased budgeting. The impact of implementing a supply chain strategy that leverages scientific risk management techniques for. A thorough assessment of the location, form, and function of distribution centers, transportation lanes, and throughput.
Developing appropriate strategies is essential as retailer requirements directly impact a manufacturers operating practices and costs. Taxation labour and material costs have been, for many multinationals, the initial driver of supply chain considerations in china. Difficulty accessing data is the top area of pain 41% with 32% of respondents having difficulty using that data to provide a basis for action and improvement in supply chain execution. A supply chain strategy should be selected based on the characteristics of the product and. A supply chain strategy that defines planttodistribution center assignments. But in todays business climate, customer expectations have grown more complex, which is fragmenting supply chains and shortening cycle times. And digital demand is not just ecommerce, but also social media, subscription sales and smart appliances. Cpg firms also sell their products, but they sell in bulks or in wholesale. It is not an easy time to be a supply chain professional is it ever. At many companies, the commercial organization and the supply chain organization fail to collaborate on a mutually beneficial strategy. Fisher 3 categorized products as either functional or innovative, depending on.
How to integrate your production and logistics strategy. Supply chain management is the overall management of all the links incorporated in the process of the production and transportation of goods and services. Within the world of supply chain management scm, each industry is unique. Align your supply chain with business goals by integrating sales and operations planning with corporate business planning. Empirical case study in europe and asia according to the resourcebased view, the resources of a. A kane white paper strategies to reduce logistics costs in the cpg supply chain consumer packaged goods cpg companies face a constant battle for market share and retail shelf space. According to the apics dictionary, 14th edition, the strategy of an enterprise identifies how a company will function in its environment. The global standards management process gsmp is the global process. Consumer packaged goods cpg companies are adapting. Gillettes oral care segment dominates both the manual and power toothbrush markets.
Price points are a key weapon in this battle and, increasingly, cpg companies rely. In particular, firms with a multiechelon inventory or setup cost structure can benefit from a model that accounts for these important cost. Digital supply chain iot 28 28 of cpg companies use iot. Online shopping, new digital technologies, and increasing channel fragmentation are intensifying the pressures on us consumer packaged goods cpg supply chains. A kane white paper strategies to reduce logistics costs in. Supply chain management once upon a time, operating a supply chain at peak efficiency was a key to success. This paper presents a method to capture and express a firm. Key challenges and value opportunities, geps experts share three highimpact strategies for cpg companies to respond to changing market dynamics and stay competitive. The ability of blockchain to track, trace and authenticate products, record contracts, guarantee the movement of information and record transactions means it can be used across the entire value chain. There are clear steps cpg companies must take in order to prepare, according to a new report authored by the boston consulting group bcg and commissioned by the grocery manufacturers association gma. Implications for cpg manufacturers demand planning supply chain adjust production to consumer demand shocks and potential short term and longterm scenarios. Incremental reductions are no longer sufficient to withstand the pressures of todays business environment. Sell reflects the extent to which companies engage consumers through digital means, sell through multiple integrated channels and serve consumers with a seamless experience postsale or subscription.
But in setting supply chain strategy, youll need to look at three layers of cost. Price points are a key weapon in this battle and, increasingly, cpg companies rely on lean logistics operations to provide a cost advantage. Improvement in these metrics have a direct effect on the bottomline of the. Supply chain management strategy is a major player in product customization, quality control, cost reductions, and speedtomarket. Although sales and operations planning processes provide coordination among sales, manufacturing, and distribution, there still are disconnects and gaps among finance, strategy, and operations in many companies. Most ceos of the top 50 cpg companies grow their careers within the same industry theyre now leading. Reinventing the cpg supply chain with zerobased budgeting 4 automation and analytics can be applied in supply chains in a variety of ways. Reengineering the supply chain for the omnichannel of. Apply to supply chain specialist, senior director, senior supply chain specialist and more. Retail consolidation, digitalization and the race to enter emerging markets add growing pressure. How is your cpg company responding to this challenge. The popular retailers are costco, target, walmart and amazon, to name a few, and all of them sell cpg. A leading cpg company with global operations and premium, categoryleading brands.
Our unique suite of services allows us to offer our clients a broad range of services to maximize the efficiency and efficacy of the cpg marketing and sales process for their businesses. Supply chain risk management helps a renowned client in the cpg industry save millions overview of the cpg industry the global consumer packed goods cpg industry typically consists of groups including appliances, toiletries and cosmetics, and food and beverage. Yet these lowcost benefits are eroding through a combination of cost. The idea driving supply chains through the 1990s came from a shelfcentric view of demand. How cpg supply chains are preparing for seismic change. The importance of supply chain management strategy pls. Cpg companies have traditionally sought to reduce supply chain costs by 2% to 5% a year. Article pdf 2mb over the last 30 years, supply chain has undergone a tremendous change. This thesis emphasizes how integrating production and logistics strategies can offer significant improvement to any firms supply chain. Things are different now and the whole concept of demand driven urgently needs a refresh before big cpg replenishes itself into oblivion. A kane research study key supply chain challenges of mid. Whether on one of our eretail partner channels, direct as a promotion on a custom url or via email or affiliate, cpg.
Responsive supply chain inputs and outputs approvals are completed, shipping. Cpg supply chains are adapting to disruption, new research. In their case, a breakdown in trade treaties between two countries in which the company had presence forced them to reanalyze their supply chain strategy in order to look for new locations. Weve helped 23 of the 25 largest global consumer products companies see through the haze, increasing profits and building sustained value. Would you like to learn more about our consumer packaged goods practice. Strategies for cpg companies abstract reallife proof points show that omnichannel and directtoconsumer digital strategies are. Io can help you fine tune your next sampling strategy and hopefully attract a healthy new clip of future customers. We enable cpg companies to reduce their total cost of ownership tco by evolving from a reactive, supplydriven setup to proactive, demanddriven operations. Cpg and the postreplenishment supply chain challenge. Strategies to reduce logistics costs in the cpg supply chain. Cpg industry supply planning, consumer packaged goods, fmcg marketing, consumer goods industry, trade marketing, supply chain management, inventory management, logistics management, demand forecasting, strategic planning solutions are now available from quantzig. So the tight capacity has enabled us to invest in yield management tools. A truly competitive supply chain supports the business strategy by supporting the business model in a highly integrated way. Once the supply chain council has set a strategy, the supply chain organization must be prepared to execute.
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