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

Possible Expansion Modules—based on specific business need

Next Steps:

Your inventory, our passion!

A partial list of our Consumer Packaged Goods (CPG) distribution customers: