Consumer Packaged Goods are entering a period of rapid change
Scale and efficiency alone are no longer sufficient to remain ahead of the competition.
This industry is no longer the game of giants: increasingly, small nimble competitors are swarming and disrupting the market place. eCommerce and new purchase patterns are creating supply chain disruptions and an increasingly unpredictable and pressure-filled environment for consumer goods companies.
The consumer has changed; retailers are scrambling to adapt and consumer product companies must make changes fast.
According to a Nielsen 2016 Report, “there will be more change in CPG in the next five years than there was in the last 50” and companies can’t wait another year to define what that change will be.
Through the advances of technology and connectivity, consumers now have more of a voice than ever in the development of the products they seek and the strategies of the companies that make them.
Millennials are the source of future growth and have completely different purchase patterns. Health, wellness, and responsibility have shown to be a basis of their brand loyalty.
This means traditional stage gate product development cycle and supply chain networks are being challenged. Business models need to be rethought. Fresh thinking is required. Innovation is at an all-time low in large traditional companies who need it now more than ever. Large companies, encumbered by traditional hierarchies, are not able to experiment, innovate, and keep up with the fast pace of emerging competitors on the market.
Furthermore, increasingly complex supply chains, outsourced around the globe and increasingly weighed down by a complicated regulatory environment, are vulnerable to threats and disruptions that have unknown second and third-order effects. Globally dispersed teams struggle to bridge the barriers to the collaboration and communication that are so necessary to produce and ship product on a global scale.
The combination of changed consumer habits, vulnerable supply chains, and an increasing need for adaptability is a fundamental change that has put executive teams on high alert.
From our work with leading consumer product companies, we have experience solving for industry issues.
We’ve helped leading brands:
- Revisit their vision and mission to drive sales
- Align around and refocus on their core strategies
- Rethink their internal cross-functional incentives to allow for innovative solutions that can keep up with a new set of challenges
- Overhaul their internal operating cadence to improve cross-functional communications to gain a more accurate understanding of the operating environment
- Decentralize decisions more effectively to be able to adapt faster to the changing demands of the customer and the consumer
- Make higher quality decisions faster to solve problems more effectively and keep up with the pace of change
Our results include faster progress against strategies, increased profit margins, streamlined supply chains, successful entrance into new markets, and improved consumer understanding.
Learn more about our offerings here.