It’s no secret that the consumer products industry has rapidly morphed, especially due to the advancement of the e-commerce industry. Many consumers can get the products they need at the click of a button and their orders will be delivered right to their doorsteps within days–if not hours.
This element of convenience has contributed immensely to the ongoing growth of the consumer-packaged goods (CPG) industry. But is this the only notable trend witnessed in this industry? The answer is no.
There are many more notable trends, especially in the areas of resource planning and management. So, what are these CPG industry trends, and how are they transforming the industry?
What Are Consumer-Packaged Goods?Consumer-packaged goods are fast-moving products that consumers use and replace frequently. These products include:
- Cleaning products
- Over-the-counter drugs
- Other consumables
CPGs shouldn't be confused with durable goods (DGs) which aren’t meant to be replaced regularly. DGs can only be replaced when they get damaged or experience irreparable wear and tear.
CPG Industry Trends
As the CPG industry continues to grow, industry players are tirelessly looking for ideas to make their operations simplified, cost-effective, and more successful. This is why new CPG trends keep emerging.
Here are the latest trends in this industry:
Enterprise Resource Planning Solutions
As a manufacturer or supplier of CPGs, it’s important to find ways to automate core processes throughout your supply chain to avoid delays and disruptions. Fortunately, you can now incorporate an advanced enterprise resource planning (ERP) solution into your operations to streamline your processes.
With the right CPG ERP solutions, you can easily avoid common supply chain problems like:
- Unexpected delays
- Difficult demand estimation
- Poor cost control
- Unexpected changes in freight prices
- Warehouse congestion
Your ERP solution will also make sourcing raw materials more sustainable because it will offer you real-time access to the supply chain, allowing you to track your inventory levels and monitor production procedures. This way, you can easily identify and predict potential bottlenecks in your supply chain and avoid them before they occur.
An ERP system will also help you optimize your resource management. These systems come with robust tools that track and analyze your data to gain useful insights into the utilization of essential resources, like packaging materials and equipment.
With the right CPG data insights, you can easily identify key areas of inefficiency throughout your supply chain and determine which strategies will make the processes more efficient. This allows you to save on operation costs and maximize the use of the available resources
The current global inflation and increase in CPG prices have forced industry players to find ways to make their operations more sustainable. For instance, CPG manufacturers and suppliers have discovered the importance of reassessing their production strategies and constantly analyzing changes in consumer behavior.
You can only achieve this if you have constant access to real-time data, which is where a reliable ERP solution comes in handy. These solutions gather necessary data and analyze it for useful insights into sourcing materials, compliance with environmental objectives, production processes, and inventory management.
ERP systems come with robust data-collecting and reporting tools that streamline your processes of gathering, analyzing, and reporting data on your sustainability efforts. A data-based approach to sustainability enhances accountability, transparency, and compliance, which reinforces your stakeholder’s trust.
Faster and Cost-Effective Logistics Solutions
Whether you’re a CPG manufacturer or supplier, you need a reliable and cost-effective logistics strategy to deliver your CPGs to your consumers promptly and effortlessly. The entire spectrum of logistics involves packaging, shipping, and handling delivery.
These processes can be quite challenging if you don’t have the right tools to streamline them. With an ERP system, you have a smarter way of managing your logistics expenses because you can see which areas are consuming more resources. This allows you to find ways to minimize the expenses.
An ERP solution will give you better inventory control and management and logistics workforce management, which are both essential for the streamlined and cost-effective delivery of goods. This also allows you to track the sustainability metrics of your logistics business for compliance.
Lastly, this system is also built for planning and maintaining your logistics network, as well as for inbound and outbound distribution processes. Fortunately, you can get the best ERP solutions for your business from Navigator Business Solutions–reach out to our experts today!