Fast-changing trends make the ability to predict demand a critical success factor for consumer packaged goods (CPG) manufacturers. As product innovation gains momentum and companies expand into new markets and segments, the number of active stock-keeping units (SKUs) continues to proliferate. Add the demands of the hyper-competitive retail sector, supplier collaboration challenges and other external factors, and sales are increasingly difficult to predict.
The consumer goods market is characterized 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 reorders in a cost-effective manner while ensuring timely delivery to the customer.
At the same time, CPG supply chains have become more global, now including suppliers, co-packers, third-party logistics (3PL) companies and other service providers. Same-day and omnichannel are far more than buzzwords, representing new challenges for supply chain leaders.
Finally, consumer goods companies are being held to higher and higher standards for product traceability and quality. This creates more pressure in the face of the complications that arise from outsourcing manufacturing, packing, warehousing and transportation.
Working with leading companies, E2open has developed a complete range of applications to address the key supply chain challenges CPG brand owners and their suppliers face.