Consumer goods suppliers can save millions of dollars by evaluating and improving direct store delivery (DSD) operations — the way that products are ordered, sold, delivered and merchandised — according to a report from Honeywell.
Analyst Insight: Years ago in the consumer products industry, the "supply chain of the future" looked much like today's supply chain. Industry change was gradual and incremental. But the pace of change today demands a more proactive and aggressive approach to future logistics planning. Market and competitive forces are completely reshaping how supply chains need to operate in the future. There are several opportunities for companies to improve their market position by improving internal operations. - Charles Trimarco, Managing Consultant-Supply Chain Management, Capgemini Consulting
Analyst Insight: The consumer packaged goods (CPG) industry is in the midst of a supply chain talent shortage across all functions, but particularly in planning roles. CPG companies have had to adapt many strategies to maintain an adequate level of supply chain talent in their organizations. Today, it is more important than ever for these companies to place a premium on retaining and finding supply chain talent. - Bruce Tompkins, Executive Director, Tompkins Supply Chain Consortium
Analyst Insight: In the world today, there are 6.8 billion people; 4 billion have mobile phones. Only 3.5 billion use a tooth brush! There are more U.S. mobile subscriptions than people; 70 percent use their smartphones during their in-store experience! Why should we care in CPG? One fifth of searches are for CPG products. Online-to-offline (O2O) commerce is expected to grow 50 percent over 5 years, outpacing offline commerce and exceeding online ecommerce by over 400 percent (!), according to Forrester Research. - Rich Sherman, Principal Essentialist, Trissential
Procter + Gamble Co. says its 15th Annual Sustainability Report demonstrates the company's commitment to helping people live better and more sustainably through an integrated approach to environmental and social responsibility. The report includes P+G's sustainability results from the past fiscal year and progress updates on the company's environmental and social responsibility goals for 2020.
As we move into the heart of the holiday shopping season, consumer packaged goods (CPG) providers are once again faced with the challenge of matching supply with uncertain demand. How can they avoid the twin threats of stockouts and excess inventory at this crucial time of the retailing year? It's a delicate balance indeed.
Brenda Hambleton, chief marketing and strategy officer with ES3, details the biggest challenges that consumer-goods producers will be facing in their supply chains over the next five years.
Recent research shows 80 percent of the consumer goods companies surveyed have a formal sales and operations planning (S&OP) process in place, yet more than half rely on spreadsheets while another 26 percent stated they either utilize a homegrown solution or their ERP system.
Today, titans of technology and consumer packaged goods are jumping on the customization bandwagon. And for good reason. In a world where customers are in the driver's seat, customization is no longer a "nice to have". It's an expected offering.