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CPG Industry Supply Chain Management: A Detailed Blueprint

Issues within supply chains are key CPG industry challenges, where vast, global, and often complex supply chains need to be managed at every touchpoint, from material suppliers to logistical services, manufacturers, growers, and distributors–ending with consumers.

Achieving insights that unpick the important underlying metrics is essential for CPG businesses, whether to meet ESG (environmental, social, and governance) objectives or to ensure all data that flows into the organization accurately indicates performance and quality.

Choosing a CPG ERP designed to meet the needs of the industry can deliver profound benefits, from making supply chains more resilient, expediting time-to-market cycles for new developments, and augmenting operational efficiencies across the board.


Important Factors for CPG Businesses Looking to Improve Efficiency and Innovation

Developing a supply chain with faultless visibility, excellent platform-based management, and data inflows that provide a real-time overview of regulatory compliance, sustainability, and profitability generates tangible benefits.

Let’s walk through some of the most crucial elements and explain how future-proof software can provide a comprehensive resolution.

Using CPG ERPs for Cohesive Business Planning

Gaps in supply chain visibility can be business-critical without the quality data for managers to understand why systems are underperforming or where bottlenecks are affecting revenues. Machine learning and analytical tools provide deep-dive insights that cover aspects from human capital to supply chain stability and financial planning. 

These areas aren't just essential to congested, complex supply chains, but they also feed into broader-scope strategies, such as deciding how to augment sustainability metrics and allocate product logistics for varied consumer markets. Disparate systems with siloed data are a common hindrance for CPG businesses. In contrast, a customized ERP can provide on-demand data access, more accurate forecasting, precise monthly reporting figures, and visibility that drills down to individual SKUs.


Achieving Streamlined Production While Reducing Manufacturing Costs

Operational efficiency that delivers better inventory management and logistics alongside lower costs is the gold standard. Rather than focusing singularly on cost, ERPs provide a holistic organizational view of operations that helps senior leadership identify opportunities for automation, cost reductions, and tighter controls without compromising cash reserves to meet shortfalls in inventory availability and production scheduling or spikes in consumer demand.

Monitoring capacity is incredibly important in CPG production sectors where non-durable resources are utilized, where grading, labeling, testing, sorting, and harvesting are all precisely aligned with the needs of the business.


Bringing New CPG Products to Market Faster

Lags in product development have a knock-on impact across a CPG company, where investments in market research and testing are often considered sunk costs–without any way to recover outputs within a viable timeframe. Particularly for omnichannel businesses, the agility and scalability of intuitive resource management systems deliver a distinct competitive advantage, outperforming the capabilities of legacy systems many times over.

For example, a software connection that bridges back-end and front-end data sources can accelerate standard time-to-market processes, allowing for further analysis of business models, consumer behaviors, and the flexibility of existing production facilities to meet projected demand.


Improving CPG Business Sustainability

Sustainability is an influential factor for consumer decision-making about the CPG products they purchase and for regulators seeking to make large-scale sectors better aligned with governmental targets. For CPG companies, this might mean analyzing manufacturing processes, packaging, sourcing strategies, and the materials they select. 

While investing in sustainability is often perceived as an expensive exercise, the reality is that better-informed consumers make a growing proportion of their buying choices based on values and ethics, with more sustainable CPG manufacturers achieving higher growth in revenue, cost reductions, asset retention, and innovation. Automation provides insights that can catalyze faster, more secure developments where decision-makers have clear insights into how and where they can improve processes to embrace sustainability while adhering to evolving regulations and targets.


Eliminating Data Silos From CPG Sector Businesses

Removing data segregation is highly beneficial to performance, with single sources of truth providing the frameworks that facilitate continual progression and innovation from the inside out. CPG companies interested in the opportunities software solutions provide can explore new ways to pre-empt changes to consumer demand, enforce better cost controls, simplify processes, and optimize labor deployments, inventory management, and billing processes.

For more information about the ERP advantage and how this relates to your business or organization, contact the Navigator Business Solutions team for further guidance or to schedule a convenient time for a tailored consultation!

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