Growing consumer products businesses face added operational complexity. With that complexity comes the need for a more robust ERP backend that can handle these new complexities.
Although an expanding consumer products business has many of the operational basics already in place, scaling brings the need for additional capabilities. Some of these include deeper inventory and supply chain management control, and capabilities such as robust analytics. But with expansion there often also are extra concerns that the business might not have faced before, such as managing cross-border financial compliance and additional controls around quality management.
Your business can make the leap, but it helps to have the right technology in place before expansion. As shoe manufacturing unicorn Rothy’s has noted, it pays to have the right technology in place at least two years before it is needed so growth takes place unimpeded.
Read more about Rothy’s ERP journey
With that in mind, here are six of the most important ERP capabilities for a growing consumer products business. Make sure your system is ready for its growth trajectory.
Main requirements:
One of the most critical capabilities for a growing consumer products business is integrated supply chain and inventory management. When production volumes rise and distribution networks expand, a consumer products business will need real-time oversight on raw materials, stock, and demand all across its supply chain.
There must be visibility all along the supply chain, system interconnection for coordinating and collaborating more deeply with key suppliers, and accurate, real-time forecasting capabilities for ensuring that the right products and materials are in the right place at the right time in the quantities required.
A modern cloud-based ERP solution connects procurement, production, warehousing, and logistics into a single source of truth. This enables more accurate forecasting, automated replenishment, and faster response to supply or demand shifts, helping brands avoid costly stockouts or overstocks.
Main requirements:
Financial scalability and global readiness is equally important for an expanding consumer products business. Growing brands often expand into new regions and require subsidiaries and harmonization with multiple compliance regimes. This global expansion can significantly complicate financial reporting and compliance.
The right ERP system for a fast-growing consumer products business will support multi-entity corporate structuring, multi-currency accounting, and multi-GAAP support for simplified consolidation. A good ERP solution also will automate intercompany transactions, and ensure accurate reporting across borders. This functionality gives consumer products leadership confidence in their numbers and clarity into profitability by product line, channel, or geography.
Main requirements:
As consumer behavior shifts toward digital-first engagement, omnichannel integration becomes essential as a consumer products business grows. Juggling sales and support across multiple channels worked when your business was small, but only omnichannel capabilities allow your business to keep growing.
Full-featured cloud ERP solutions such as SAP Cloud ERP are built for this omnichannel approach. It helps a consumer products business seamlessly connect with e-commerce, retail POS, and distribution channels in one place for better order management, pricing, and promotions. It also helps unify support so a business can communicate across channels the same way that consumers expect when talking with each other.
This unified customer experience improves fulfillment accuracy, provides a true view of performance across both direct-to-consumer and wholesale channels, and boosts customer intimacy and satisfaction.
Main requirements:
Robust quality control mechanisms and capabilities such as batch traceability often become necessary for a scaling consumer products businesses. Production and quality management capabilities are especially key for brands that manufacture or partner with co-packers.
The right cloud ERP solution will support detailed bill of materials tracking, batch and lot traceability, and built-in quality control processes. These help ensure compliance with regulatory standards and retailer requirements while at the same time helping to maintain product integrity as production scales.
Main requirements:
Data insights and deep analytical capabilities are critical for capturing ongoing consumer sentiment and shifting market dynamics as a consumer products business grows. Real-time data should be easily accessible and easily digested across the organization through real-time dashboards and predictive insights.
A modern cloud ERP solution will come with a bevy of real-time dashboards, embedded analytics and AI-driven forecasting tools for capturing and making sense of changing business dynamics. ERP can help your business identify trends, anticipate demand, and make smarter, faster decisions.
Main requirements:
One of the most underrated capabilities that a growing consumer products business needs is system flexibility. An expanding business needs a system that can grow with operations, connect with a wide variety of business partners and cloud services that haven’t even been invented yet, and support workflows that evolve or change over time.
The right ERP system will have a scalable cloud backend that can expand with the business but not require more resources and capabilities than is needed today. It will support wide API connectivity for integrating with third-party logistics, CRM, and marketing systems, and encourage best practice workflows without compromising the fundamental flexibility to define custom or bespoke processes where needed.
Ensure that your expanding consumer products business is ready for its growth journey, with the right technology in place for uninterrupted expansion.
Contact one of our experienced ERP consultants by calling (801) 642-0123 or by writing us at info@nbs-us.com to learn how you can put all of these capabilities in place without slowing down growth.