What is the role of procurement in growing a CPG’s brand? Procurement and Marketing teams can unite to help their companies more than they may realize.
Every industry has its set of challenges. The biggest challenges that present-day Consumer Packaged Goods (CPG) companies and their procurement teams have to contend with are:
Some simple ways of overcoming these challenges in the CPG industry are:
The CPG domain is expanding at a mind-blowing speed and will use up consumer packaged goods valued at around $64 trillion by 2025, as stated in a McKinsey report. Companies are consistently diversifying to fulfill requirements from digitally conscious and affiliated consumers.
However, CPG acquisition teams face obstacles with continuously seeking new profit opportunities in supply chains while simultaneously achieving and complying with a broad range of international government standards.
Data-driven in-depth knowledge answers exceedingly tricky challenges in an industry that thrives on improved understanding of procurement in the CPG industry. Properly evaluating data can empower businesses to make better decisions.
Mismanagement of data can cause many issues for the business. The efficient usage of data, useful knowledge, and appropriate insights must strike an equilibrium. Research and analyses can address the procurement needs of businesses in today’s intelligence age.
Using machine learning and artificial intelligence can enable companies to make better purchasing choices and make enlightened financial and protective strategies that help them achieve their targets.
With the ability to access real-time data, CPGs can prepare for change and seek optional sources to reduce the possible repercussions on its baseline and help get into contract re-negotiations.
CPGs depend on real-time data of procurement costs of goods that also comprises direct constituent classifications like flour, fats, sugars, dairy, colors, emulsifiers, and flavors. This information helps place companies as the category managers with total transparency about the price perspective, supplier risk, supply versus demand, new developments, industry updates, cost contributions, and their effects.
Though the CPG sector has a lot of information for procurement teams, they still require real-time, workable data with in-depth knowledge to help enterprises make critical decision-making and overcome competition.
CPGs can thrive in the industry by:
When outstanding assistance and value are Procurement’s goals, a remedy to the imbalanced kinetics between Marketing and Procurement is possible. Procurement must have the power to activate and the flexibility to correspond to Marketing progressively in a world that is volatile and full of all options.
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