Cpg supply chain strategy pdf

A supply chain strategy that defines planttodistribution center assignments. Supply chain management strategy is a major player in product customization, quality control, cost reductions, and speedtomarket. 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. Reinventing the cpg supply chain with zerobased budgeting. Taxation labour and material costs have been, for many multinationals, the initial driver of supply chain considerations in china. Implications for cpg manufacturers demand planning supply chain adjust production to consumer demand shocks and potential short term and longterm scenarios.

Things are different now and the whole concept of demand driven urgently needs a refresh before big cpg replenishes itself into oblivion. The importance of supply chain management strategy pls. Ibp, inventory optimization, supply chain network optimization, omnichannel supply chain, supply chain assessment, and integrated distribution management systems idms. A thorough assessment of the location, form, and function of distribution centers, transportation lanes, and throughput. Cpg firms also sell their products, but they sell in bulks or in wholesale. Fisher 3 categorized products as either functional or innovative, depending on. The global standards management process gsmp is the global process. Cpg supply chains are adapting to disruption, new research. A leading cpg company with global operations and premium, categoryleading brands. 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. A supply chain strategy should be selected based on the characteristics of the product and.

Article pdf 2mb over the last 30 years, supply chain has undergone a tremendous change. Align your supply chain with business goals by integrating sales and operations planning with corporate business planning. Companies who are members of ctls supply chain ex change. At national sales and marketing, we are extremely pleased to offer our customers a one stop solution. Consumer packaged goods cpg companies are adapting. Most ceos of the top 50 cpg companies grow their careers within the same industry theyre now leading. Gillettes oral care segment dominates both the manual and power toothbrush markets. Cpg and the postreplenishment supply chain challenge. How cpg supply chains are preparing for seismic change. Key challenges and value opportunities, geps experts share three highimpact strategies for cpg companies to respond to changing market dynamics and stay competitive. 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. The purpose of the supply chain challenge study is to investigate cpg manufacturer strategies for coping with the supply chain demands of major retailers. Amsterdam, 2017 fast moving consumer goods analytics framework point of view.

Empirical case study in europe and asia according to the resourcebased view, the resources of a. Kumar worked with leading fortune 500 cpg firms and at a national retailer and apparel manufacturer. Weve helped 23 of the 25 largest global consumer products companies see through the haze, increasing profits and building sustained value. Supply chain strategy is seldom stated explicitly, making it difficult to discuss a firm. 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.

A kane white paper strategies to reduce logistics costs in. 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. How is your cpg company responding to this challenge. Responsive supply chain inputs and outputs approvals are completed, shipping. At many companies, the commercial organization and the supply chain organization fail to collaborate on a mutually beneficial strategy. But in todays business climate, customer expectations have grown more complex, which is fragmenting supply chains and shortening cycle times. In particular, firms with a multiechelon inventory or setup cost structure can benefit from a model that accounts for these important cost. We enable cpg companies to reduce their total cost of ownership tco by evolving from a reactive, supplydriven setup to proactive, demanddriven operations. Whether on one of our eretail partner channels, direct as a promotion on a custom url or via email or affiliate, cpg. 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.

Consumer packaged goods cpg businesses are being rocked by changing consumer. For cpg companies, the implications in terms of supply chain strategy reach well back into product innovation and network design, and yet many still seem to be unclear about the path forward. The idea driving supply chains through the 1990s came from a shelfcentric view of demand. It is not an easy time to be a supply chain professional is it ever. Assessing opportunities to reduce cycle times across the supply chain. Each of the projects is a joint effort between a sponsoring company, one or two students, and one or two faculty advisors. Apply to supply chain specialist, senior director, senior supply chain specialist and more. 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.

Incremental reductions are no longer sufficient to withstand the pressures of todays business environment. 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. A kane research study key supply chain challenges of mid. The impact of implementing a supply chain strategy that leverages scientific risk management techniques for. Improvement in these metrics have a direct effect on the bottomline of the. Io can help you fine tune your next sampling strategy and hopefully attract a healthy new clip of future customers.

The popular retailers are costco, target, walmart and amazon, to name a few, and all of them sell cpg. Reinventing the cpg supply chain with zerobased budgeting 4 automation and analytics can be applied in supply chains in a variety of ways. Strategies for cpg companies abstract reallife proof points show that omnichannel and directtoconsumer digital strategies are. 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. Supply chain management is the overall management of all the links incorporated in the process of the production and transportation of goods and services. This paper presents a method to capture and express a firm. Price points are a key weapon in this battle and, increasingly, cpg companies rely on lean logistics operations to provide a cost advantage. Strategies to reduce logistics costs in the cpg supply chain. A truly competitive supply chain supports the business strategy by supporting the business model in a highly integrated way. Reengineering the supply chain for the omnichannel of. And digital demand is not just ecommerce, but also social media, subscription sales and smart appliances. Online shopping, new digital technologies, and increasing channel fragmentation are intensifying the pressures on us consumer packaged goods cpg supply chains. Porter 3 points out that although many companies have gained operational. Walmarts retail dominance defined excellence in everything from perfect order to cost management.

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. According to the apics dictionary, 14th edition, the strategy of an enterprise identifies how a company will function in its environment. Supply chain management once upon a time, operating a supply chain at peak efficiency was a key to success. Within the world of supply chain management scm, each industry is unique. Digital supply chain iot 28 28 of cpg companies use iot. Io can both advise on how to execute your next sampling program and execute it for you. Retail consolidation, digitalization and the race to enter emerging markets add growing pressure. Once the supply chain council has set a strategy, the supply chain organization must be prepared to execute. So the tight capacity has enabled us to invest in yield management tools. This thesis emphasizes how integrating production and logistics strategies can offer significant improvement to any firms supply chain.

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. The report also shares specific action points for procurement teams to underpin the enterprises growth agenda. Cpg companies have traditionally sought to reduce supply chain costs by 2% to 5% a year. With incremental improvements to existing distribution processes. 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. But in setting supply chain strategy, youll need to look at three layers of cost. Consumers may demand more for health prevention and cleaning in the short term, and may reduce demand for some. Would you like to learn more about our consumer packaged goods practice. Moredetailed benchmarks show that supply chains can still yield significant valuebuilding on the investments so many cpg companies have already made.