CASE STUDY

A Fortune 500 Consumer Packaged Goods Company Revolutionized its Logistics Management System with the Help of Supply Chain Analysis

Dec 10, 2018

 Top 3 Consumer Packaged Goods Industry Trends

In today’s digitally oriented marketplace it seems that the relevant adage is now closer to, ‘the customer is always informed’, unlike the old adage ‘the customer is always right’. This is a significant trend that is going to change the way the consumer packaged goods companies think of marketing, owing to an increased importance placed on consumer connections. However, consumers no longer only want information about products; instead, they want to connect with the company behind it. Here are a few factors that are expected to transform the consumer packaged goods industry:

Globalization: While several consumer packaged goods companies see the globalization of markets as a challenge, it offers a good opportunity for consumer packaged goods companies to reach out to the users they never could have in the past.

Sustainability: As sustainability continues to be a growing concern for consumers, the consumer packaged goods companies need to adopt suitable solutions to meet the demand.

Consumer Connections: Consumer packaged goods companies must be attuned to the consumers’ preferences in the new market. They can do so by connecting with them and developing engaging stories that will promt them to invest in their products.

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About the Client

The client- one of the world’s leading players in the consumer packaged goods industry.

Client’s Challenge

The client’s huge scale of operations, a wide variety of products, and global reach made it an industry powerhouse, but at the same time presented a myriad of challenges for its logistics and shipping managers. The consumer packaged goods industry player faced several challenges in the form of high recruitment and logistics training costs along with a high turnover ratio. This prompted them to restructure their procurement functions to enhance supply chain visibility and drive profitability.

The lack of supply chain visibility on their international purchases and the lack of end-to-end ownership of global shipments was another major concern that prompted them to seek the help of our supply chain analysis experts to conduct a comprehensive supply market research on the consumer packaged goods industry.

Engagement Overview

Despite the use of innovative, new technology and manufacturing techniques the conrequest proposalsumer packaged goods industry client’s supply management system was antiquated. It was a combination of obsolete systems that employed outdated tracking methods for more than 12 companies in its corporate organization.

SpendEdge’s supply chain analysis experts weren’t quite satisfied with the shipping practices adopted by the consumer packed goods industry player.  A detailed supply chain analysis helped them identify the processes that could be evaded to reduce inventory costs, improve forecasts, and schedule events. Supply chain analysis not only helped them improve supply chain efficiency but also helped them minimize costs and overcome supply chain risks.

Key Findings

The supply chain analysis process empowered the consumer packaged goods industry player to redesign and revolutionize their logistics management system. It proved to be beneficial in overcoming the redundancies in the supply chain while creating new value-added processesIn addition to such factors supply chain analysis helped the consumer packaged goods client to improve transportation and inventory planning, increase transportation management efficiency and track just-in-time delivery metrics by analyzing shipping schedules.


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