Today's global marketplace is in constant flux. CPG brands and their contract packaging service providers are challenged by shifting consumer behavior driving SKU variety, data proliferation, and rising costs.
As consumer choice increases, CPG brands respond with multiple packaging options, expanded product lines, niche offerings, and seasonal or regional promotions. The result is the need to handle fast change overs, shorter runs, and order complexity.
Shorter runs and increasing variety requires faster, accurate communication allowing smarter decisions to be made quickly. To succeed, CPG brands and their contract packaging service providers need to move their relationship from cooperation to true collaboration through automation and data sharing.
Retailers are turning up the heat with serious penalties for missing OTIF windows. Preserving OSA and retail relationships can be challenging. Overtime, expedited shipping, safety stock, and material write-off costs all add up fast and cut into margins.
We live and operate now in a radically connected, data-aware world. CPGs are increasingly working with their supplier networks to capture, understand, and share data to drive innovation.