Pandemic-induced disruption has profoundly impacted the future of CPG supply chains. Customers are at the heart of this transformation. Having adapted to new ways of shopping, they now expect a personal, frictionless and consistent experience across all purchases.

To meet these heightened expectations, CPG companies are being called upon to rise above their rigid supply chains and become agile, flexible and responsive. But it’s not easy. To get there, they’ll need to rethink their core processes, identify alternative distribution mechanisms, and embed new technologies to mitigate risk.

By putting the customer first, using digital platforms and data effectively and understanding the importance of sustainability, CPG leaders can take steps towards a customer centric and future-ready supply chain.

3 keys to supply chain transformation

    Put the customer first

  • Embed a customer-focused supply chain mindset across your organisation

  • Develop an omnichannel supply chain experience to support, inform and connect customers to products

  • Explore new platforms and business models such as same-day-delivery

  • Identify new routes to market, embed micro supply chains, and consider new processes, suppliers and technology.

    Use digital platforms effectively

  • Explore diverse digital platforms to innovate future supply chain pathways

  • Look for collaboration between platforms for sharing data, resources and strategies

  • Leverage interconnected platforms to act and respond quickly to customer demand and introduce new products faster

  • Purchase parts of the supply chain from third parties including load sharing, network optimisation and R&D as a service.

    The importance of sustainability

  • Work towards cross-supply chain transparency and visibility

  • Educate and work with third parties towards shared sustainability goals

  • Understand the true flow of materials, making it easier to decarbonise, reduce energy and plastic and implement other sustainable practices

  • Use tranparency to empower consumers so they can make informed decisions.

    74 percent of global organisations are prioritising operations with efficiency and agility to fulfil the customer promise as an objective of their digital transformation.

    – A KPMG commissioned study conducted by Forrester Consulting.

Supply chain transformation roadmap – your path to success

    Clarify your strategy

    Consider how to develop organisational capabilities around your supply chain – build, borrow or buy? How will you define your Target Operating Model across people, processes, structure, technology, data and governance?

    Choose to diversify or streamline

    While some CPG companies will find success in diversification, others will need to streamline product portfolios – identifying top priority SKUs by analysing consumer purchase data, among other criteria.

    Leverage data

    From a customer perspective, the precision marketing model on which CPG companies rely is all about combining data and context to understand who and where the consumers are on their individual customer journeys.

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KPMG can support you as a trusted partner and advisor, collaborating and co-designing your future-ready transformation agenda.

Download the report and complete the preparation checklist to see where you are on the supply chain transformation journey.

Together, we’ll develop and implement a customer-centric approach across people, operations, systems and processes to put your company at the cutting edge of CPG supply chains. Let’s get you ready to succeed.

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