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Focus Is on Return on Assets, Inventory Turns and Revenue Growth
Retailers are making a fundamental shift in the way they do business by creating value networks that coordinate processes and technology to understand, shape and respond more efficiently to consumer demand. Leading supply chain organizations recognize the link between responsive networks and improved supply chain performance.

While metrics such as return on assets (ROA), inventory turns and revenue growth resonates across organizations, retailers recognize the nuances of their segment and the specific drivers of performance. For example:

• Fast-moving Consumer Goods--Heavy investment in real estate and inventory drives focus on ROA and inventory turns.

• General Merchandise--A keen interest by Wall Street shines a spotlight on revenue growth. When both are positive and gaining and profit growth leads, share prices tend to improve.

• Apparel--Seasonality and current trends place a premium on inventory turns, a metric made trickier to achieve by the ability of the retailer to innovate quickly to match those trends.

Fast-Moving Consumer Goods

A recent AMR Research and National Retail Federation IT budget study indicated 66 percent of respondents planned to...
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Responsive Trade Promotion Management: Creating a Single Version of the Truth
Aberdeen's research shows point-of-sale transaction data from retail locations is still a hurdle for 66 percent of manufacturers. The low levels of transaction data sharing cause increased complexities in tracking promotion effectiveness at the store or field level.

According to Best-in-Class CPG manufacturing companies, the top pressure is the lack of sufficient visibility towards trade marketing-related customer insights that support retail-level execution strategies. Companies lack location and unit-level promotion visibility, shopper insights, and shelf-level sales performance information that enable optimum trade promotion ROI.

The reasons for the deficiency in retail shelf-level insights are due to:...
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CPG Companies Drive Growth on Three Fronts
Faced with increased competition from new market entrants and private labels, consumer packaged goods companies are implementing growth strategies in three key areas, says Lora Cecere, research director at AMR Research. They are expanding into foreign markets and building global brands, introducing new products, and leveraging the extended supply chain to provide retailers and consumers with better-than-ever service. The road to transformation for these companies is far from smooth, however....
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Supply Chain Planning Trends for Consumer Goods Companies
Consumer products companies were early adopters of supply chain planning and supply chain execution. Most implementations are mature; yet in 2009, 24 percent of companies are considering switching supply chain planning vendors.

For most clients, today's supply chain planning market choices look nothing like those when the software was chosen. Software vendors have been acquired, software solutions have evolved, and new players have entered the market. Original software selections were most commonly made by regional teams, and 60 percent of supply chain organizations were regional. As CP company mergers and acquisitions occurred, the CP company finds today that it owns the software rights to many solutions. The switching is driven by three primary reasons:...
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Supply Chain Experts View of ERP vs Best-of-Breed
As ERP providers continue to improve the functionality of their supply chain applications, such as warehouse management and transportation management, the question many companies are asking is whether these systems are now "good enough" for their needs. To help answer that question, we assembled a panel of three of the most respected supply chain experts and asked them...
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January, 2009
November, 2008

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