Recently, the consumer goods industry has started witnessing promising growth, marked by the rise in consumer spending and the growing need for CPG expansion. With the advances in technology, renowned CPG companies have started relying on R&D to meet the ever-growing array of human needs. Despite the slowing GDP growth and currency weaknesses, consumer goods manufacturers are transforming their products and services to deliver personalized service offerings to the end-users. Apart from the conventional factors, the consumers shift toward organic products coupled with the growing consolidation among the retailers will further contribute to the growth of the consumer goods manufacturing space over the next couple of years. Although the industry is likely to witness a considerable growth, owing to the increasing competition from prominent suppliers, several factors may influence the growth of the industry. They include:
Growing e-retail platforms: In recent years, consumer goods saw a radical decline in the in-store shopping purchases. With the relentless growth in the e-commerce platforms, the buying preferences of the customers have started changing and customers are shifting toward online shopping owing to its convenience and the variety of products offered.
Rising innovations: In the recent years, the constant pressure to maintain the profit margins are compelling consumer goods manufacturers to explore ways to reach out to the customers more efficiently through digital channels. Also, to counter the threat of disruptors, consumer goods manufacturers have to rely on innovations to offer reliable services and deliver personalized offerings to the customers.
To address such challenges and efficiently meet the growing demands from the end-user segments, organizations are utilizing supplier profiling solutions. SpendEdge’s supplier profiling solution focuses on identifying and profiling the potential suppliers in the market based on their strengths and weaknesses. An efficient supplier profiling solution also focuses on supply management in terms of sourcing and procurement functions.
The Business Challenge and Our Journey
The client, a prominent consumer goods manufacturer, wanted to identify the most profitable suppliers from a pool of suppliers. The client wanted to leverage the use of supplier profiling solution to reduce procurement and excess inventory costs and deliver high-quality goods and services while enhancing economic opportunities. The client wanted to seek ways to engage with the best suppliers and compare their products with that of the competitors. The primary objective of the study was to evaluate the performance of the suppliers and identify the procurement risks associated with the supplier.
To address the rising concerns and reduce supply costs, SpendEdge’s supplier profiling experts followed a scrupulous research methodology and carried out discussions with prominent stakeholders in the consumer goods space. The research methodology also comprised of interviews and discussions with leading procurement experts. To profile the potential competitors, SpendEdge’s supplier profiling experts also compiled information across a wide array of proprietary sources such as paid industry databases, company presentations, and industry forums.
The supplier profiling solution offered by SpendEdge assisted the consumer goods manufacturer in identifying the potential bottlenecks in the supply chain. The client was able to better profile the suppliers based on their efficiency and performance and gain better visibility into the supply chain process. The supplier profiling solution also helped the client improve cross-functional collaboration to sustain collaborative partnerships with key suppliers.
Fundamental questions answered in this supplier profiling solutions include:
SpendEdge’s supplier profiling solution sought ways for the consumer goods manufacturers to differentiate the suppliers based on their categories and the quality offered. The engagement also focused on retaining the most potential customers and improving their performance and capabilities. The client was able to successfully measure the supplier performance in terms of the cost management, risk management, and operational improvements.
To know more about our supplier profiling solutions for consumer goods industry