Top consumer goods companies today are focusing attention on new product introductions and promotions, margin preservation, and channel management to bolster brand loyalty and customer service.
This makes the ability to predict demand a critical factor in the success of consumer goods manufacturers. Yet accelerating product innovation together with expansion into new markets and segments has led to a 32% increase in the number of active SKUs in the past 5 years. Add the demands of the hyper-competitive retail sector, the impact of quickly shifting trends and other external factors, and the result is that sales are increasingly difficult to predict.
The consumer goods market is also defined by intense competition, changing regulations, and low margins. Supply chain managers in this industry face the difficult task of managing store deliveries, inventory levels, and supplier re-orders in a cost effective manner while ensuring timely delivery to the customer.
At the same time, the supply chains have become more global, now including suppliers, co-packers, 3PLs, and other service providers. Same-day and omni-channel are more than buzzwords: they represent new challenges for CPG supply chain leaders.
Finally, consumer goods companies are being held to increasingly higher standards for product traceability and quality, despite the complications that arise from outsourcing manufacturing, packing, warehousing, and transportation.
E2open, working with leading companies, has developed a complete range of solutions to address the key supply chain challenges consumer goods brand owners and their suppliers face.