Procurement Software for Consumer Packaged Goods Industry
It is time for the Consumer Packaged Goods (CPG) industry to adopt a philosophy in which companies succeed by:
- Creating new revenue streams.
- Competing on value.
- Driving profitability via higher volumes and prices (vs. lower costs).
Consumer Packaged Goods industries are growing at an exhilarating rate and will consume some $64 trillion worth of consumer packaged goods by 2025, according to a McKinsey study. Companies are expanding into new geographies and constantly innovating to meet demands from digitally conscious and connected consumers.
But risks of disruption lurk constantly on the horizon. CPG procurement teams are challenged with consistently finding new profit pools within value chains while achieving and maintaining global supply-chain transparency and systematic compliance to an expanding array of government regulations worldwide.
With deep expertise in the CPG industry and advanced procurement suite offerings, Zycus can create a procurement infrastructure that will help your CPG company to grow sustainably and be consistently profitable.
CPG Industry Challenges
Some of the greatest challenges for contemporary CPG companies and their procurement teams include:
- Entering new global markets and capturing larger shares of emerging and developed markets.
- Exploiting rising sophistication among retailers and retail channels for mining and responding to Big Data captured from consumers (demand-driven supply chains).
- Preserving already-slim margins while increasing product mix due to geographic, demographic and technological drivers.
- Accelerating supply-chain speed driven by competition among retailers and retail channels - for example, online versus bricks and mortar.
- Coping with the commodity price super-cycle, which has seen certain commodities double in price and price volatility nearly triple since the turn of the century (with no end in sight).
- Managing global supply-chain risks associated with proliferation of counterfeiting, expanding oversight and regulation around consumer product health and safety.
- Producing cost efficiencies to offset expansion of CPG taxation - for example, new taxes aimed at promoting more health-conscious consumer choices.
- Sourcing for brand equity - for example, buying from environmentally, health & safety and socially responsible/conscious sources as driven by consumer values and preferences.
How We Can Help
Zycus can help you to drive new growth, enhance profitability and build your brand worldwide.
With our customized source-to-pay procurement suite that is highly attuned to the CPG industry's unique requirements and challenges, we help your business to perform better.
- Use powerful, multidimensional SPEND ANALYSIS to control spending, identify noncompliant spending and cost-savings opportunities, concentrate spending with high-performing sources, track and isolate commodity price and volatility risks. Read More
- Use eSOURCING to take full advantage of global market competition and to maintain strict oversight of supplier discovery and sourcing decision-making across increasingly remote global locations. Read More
- Use CONTRACT MANAGEMENT to assure utilization and consistent compliance to pricing and other contract terms and conditions and to ensure that all contracts consistently and systematically address risks associated with proliferating legal and regulatory requirements – for example, the U.S. Consumer Product Safety Improvement, Fair Packaging and Labeling, Foreign Corrupt Practices Acts and similar types of CPG regulation from across Europe, Australia/New Zealand and elsewhere. Read More
- Use SUPPLIER MANAGEMENT to obtain and maintain accurate, up-to-date information around supplier credentials and certifications, to support documentation requirements for chain-of-custody from manufacturers to consumers worldwide and to continuously track and improve supplier performance for both supply-chain risk management and acceleration purposes. Read More
- Use FINANCIAL SAVINGS MANAGEMENT to align procurement with both bottom- and top-line business performance objectives. Read More
- Use PROCURE-TO-PAY to ensure compliant purchasing and clear chain-of-custody documentation worldwide. Read More