Supply Chain Management Services in the CPG Sector
About the Client
The client is a leading player in the consumer goods sector, headquartered in Central Europe. The client’ operations are spread across their business units in different parts of Europe.
The Business Challenge
With the escalating competition, consumer goods manufacturing companies are on the lookout to increase asset utilization, reduce manufacturing lead times, and collaborate better with suppliers. In this regard, the creation of a responsive, flexible supply chain management system is critical to sensing and responding to various customer demands. While a few consumer goods manufacturers have lost ground to insurgent competitors, tomorrows leaders are heeding the digital call and seizing the competitive advantage offered by customized supply chain management services.
The client, one of the largest consumer goods manufacturers in Denmark, had realized that they were likely to lose their customer base and market value unless they revamped and modernized their supply chain management process. Their existing process was inefficient in terms of supply chain visibility and digital capabilities contributing to poor customer experience. The unproductive supply chain management system leveraged inadequacies throughout the delivery and reconciliation processes led to increased error rates and leakage due to lost invoices. Soon they realized the importance of supply chain management to compete in the global economy and turned to SpendEdge to modernize its supply chain management system and enhance the customer experience by leveraging their supply chain management services.
Working with large organizations in multiple industries, we’ve helped hundreds of customers transform their operations and envision disruptive strategies through customized supply chain management services. Find out how we improve market growth and launch new business models through our supply chain management services.
Top Supply Chain Management Challenges Faced by the Manufacturer
Problem Statement 1: The lack of supply chain visibility and collaboration in a multi-tier consumer goods environment
The client’s major challenge was to gain real-time, actionable information on their supply chain activities. However, this was hard to come by in a highly volatile and complex consumer goods environment.
Problem Statement 2: Conflicting KPI’s that discourage efficient supply chain management
The lack of sophisticated supply market intelligence was a key factor that prevented the client from integrating data to generate unique insights on supply chain activities.
Problem Statement 3: Lack of supply chain planning between different supply chain tiers
The lack of timely, accurate data prevented the client from synchronizing supply and demand resulting in diminished supply chain visibility.
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Solutions Offered and Value Delivered
The top three challenges listed above were all traced back to the core need to improve supply chain visibility and connectivity using efficient supply chain management solutions. We offered customized supply chain management services to help them overcome such challenges. The process was divided into the following phases:
The initial phase of this engagement focused on improving supply chain visibility through the efficeint use of our supply chain management services. By employing a multi-tier supply chain management process our experts helped the client to tackle their challenges through accurate forecasts and bi-directional collaboration. The supply chain transformation process turned out to be an eye-opener, offering detailed insights into inventory and point-of-sale (POS) data, which empowered the consumer goods client to proactively manage volatile demand.
Phase two of this engagement focused on the development of a supply chain management strategy that helped enhance the client’s internal capabilities while offering real-time access to valuable insights on their supply chain’s performance.
Our experts developed a suite of supply chain management solutions to help the client drive tangible business outcomes through new models of collaboration – providing deep supply market intelligence capabilities and predictive supply market insights on an ongoing basis.
In addition to attaining measurable improvements in their supply chain performance, SpendEdge’s supply chain management services helped them capture significant bottom-line benefits on a sustained basis. It included:
- Proactive supply chain risk identification
- Accurate forecasts and inventory management
- Greater savings
Why SpendEdge’s Supply Chain Management Services?
Being influenced by constant changes within the industries, the supply chain of modern organizations is complex and increasingly dynamic. With SpendEdge’s supply chain management services companies can effectively overcome procurement challenges and successfully mitigate procurement risks. Also, our supply chain management services are designed to provide unique insights into markets risks, supplier information, and procurement strategies.
What is supply chain management and why is it important?
In today’s changing business scenario, the traditional supply chain management services paradigm isn’t up to the challenge. Professionals in charge of supply chain planning need to stop assuming and thinking of their supply chains as cost drivers to be managed efficiently. Instead, they should consider it to be a competitive advantage and harness maximum benefits to differentiate themselves from the competition. Today a supply chain management system is more like an end-to-end product suite that is designed to help businesses optimize and manage their supply chains as a complete ecosystem. Also, with well-structured, demand-driven supply chain management services business are better equipped to meet the challenges of changing buyer expectations, fluctuating market demand, and shorter product life cycles.
With proven strategies, SpendEdge’s supply chain management services are designed to help organizations increase the efficiency of their procurement processes. Get in touch today to leverage our procurement intelligence solutions!