Consumer Packaged Goods (CPG)
The consumer packaged goods (CPG) industry has changed—challenging global economic conditions have required companies to become more agile, adaptable, and decisive. Relying on gut-instinct or traditional manual processes to make decisions will not produce the business results that are required to excel in a highly competitive business sector.
Today, there is a great deal of SKU-location proliferation, companies are dealing with a wide range of fast as well as slow moving demand behaviors. Then there's the difficulty of offering pre-pack, assortments, or kits including size, color, and style. That can be very hard to manage, especially while striving to achieve excellent customer service levels and respecting working capital limits.
Competitive advantage in the CPG industry depends on a firm’s ability to increase productivity, remove costs from operations, and execute precisely. Companies that improve their productivity and efficiency, while enhancing customer service will succeed. Delivering the right product, in the right quantity, at the right location requires the ability to assess, decide, and execute.
Challenges:
- Dealing with a wide range of demand behaviors—fast to slow
- Accurately forecasting future demand
- Allocate and release goods according to forecasted demand with blanket purchase order
- Fulfill drop shipments or direct-to-warehouse delivery as well as standard replenishment
- Accurately forecasting and tracking kits and assortments with varying sizes and colors
- Highly competitive—high market saturation and low consumer switching costs
- Optimized capacity planning for efficient and cost effective manufacturing
- Managing excess and/or obsolete inventory
- Efficiently filling trucks or freight containers
- Too many stock-outs
- Purchasing/replenishment optimization
Our Recommendations:
Core Distribution Modules
- Demand Manager – forecasting, safety stock, and reorder point planning
- Requirements Planner—advanced supply planning, optimization, and PO generation
- Economic Order Manager—Economic Order Quantity, ABC analysis, and service level goals
- Exception Signals –exception based management of both supply and demand streams
Possible Expansion Modules—based on specific business need
- Sales & Operations Planning –connect organizational strategy with operations
- Supply Base Manager—vendor lead time performance management
- Demand Collaboration Portal –collaborative forecast facilitation tool
- Logistics Collaboration Portal—PO tracker for offshore product in transit
Next Steps:
- Read some of our success stories in Consumer Packaged Goods (CPG)
- Download RockySoft product literature
- Contact us to request more information
- Contact us to schedule a demonstration of the Pack Light Inventory Management Suite®
Your inventory, our passion!
A partial list of our Consumer Packaged Goods (CPG) distribution customers:
- Manhattan Toy
- Dunlop Sports