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.

 

 

Customer demand and market trends are shifting faster than ever, and E2open has solutions to help keep pace.

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.

Some of the largest and most recognized consumer goods companies in the world have partnered with E2open to address these challenges. They are leveraging the E2open network and supply chain solutions to operate their multi-enterprise supply chains in real-time, helping transform them into demand-sensing, integrated demand-supply networks.

Challenge

  • Dealing with unpredictable demand

Solution

  • Demand Sensing to accurately predict near-term demand by using current information to better reflect market realities, including performance of new products and promotions
  • Demand Planning that leverages advanced pattern recognition to create more accurate long-term forecasts and automate the planning process to improve planner productivity
  • SalesSight to make it easier for account teams to provide inputs into the demand planning process through CRM integration and analytics for meaningful insights
  •  Demand Signal Management the platform to capture, cleanse, and analyze all demand-related data, enabling better decisions
  • Ensuring that decisions made in mid- to long-term will enable profitable and streamlined execution
  • Sales & Operations Planning / Integrated Business Planning for making decisions jointly with internal functions (such as, sales, marketing, operations and finance) and external partners (customers, contract manufacturers, and the like), on mid- to long-term actions for operating profitably and avoiding risk, through scenario building and analytics
  • Running a supply chain, with multiple supply chain partners (suppliers, 3PLs…)
  • Streamlining procurement processes across many partners and/or subsidiaries
  • Ensuring continuity of supply
  • Forecast Collaboration to exchange forecasts and commits with suppliers and contract manufacturers
  • Sourcing & Procurement to collaborate on orders, shipments, and receipts as well as tracks issues with suppliers and contract manufacturers
  • Inbound VMI to enable various replenishment models with suppliers
  • Monitoring product safety and quality at co-packers
  • Working effectively with co-packers
  • Responding to demand and supply changes as they occur in real-time
  • Constraint-based Supply Planning to automatically generate a best feasible plan that optimally balances supply and demand and maximizes customer service level, with scenario planning/what-if analysis
  • Ensuring high finished goods availability
  • Effective distribution logistics

“We have Demand Sensing everywhere, across the globe, in all the markets and categories where it makes sense. In terms of inventory savings resulting from better forecast accuracy, we are talking about hundreds of millions of dollars.”

– Procter & Gamble

“Our forecast accuracy is up 40% over a demand planning forecast and it has definitely helped us maintain our service level as our customer has looked at evolving their network. We see forecast improvement for all channels.”

– Land O’Lakes