Freight costs have risen 14 percent since 2012 and CPG manufacturers are finding it more and more difficult to maximize the efficiency of their supply chains, according to a recent report from Boston Consulting Group.
“Some CPGs are going back to the fundamentals and making sure all of their systems operate at peak efficiency,” says Elfrun von Koeller, a principal at BCG and coauthor of the report. “Others are integrating transportation within the supply chain strategic agenda.”
As the challenges facing the transportation side of CPG manufacturing make it increasingly difficult maximize profitability supply chain leaders are turning to integrated approach to partnerships, transportation and technology. BCG estimates that implementing a suite of tactics within an integrated approach can lead to a potential cost savings of 7 percent of transportation spending, or roughly $1 billion, industrywide.
To achieve this, supply chain guru’s must work more closely than ever with business units and enterprise leader for a collaborative approach, thus more effectively deploying methods that are holistic and hopefully they will be able to restore and build on the important performance gains of recent years.
“There is no silver bullet, but those CPG companies that recognize and address the need for a comprehensive response will enjoy competitive advantage,” said Peter Dawe, a BCG partner and coauthor of the report.
Ignoring outdated technology is no longer acceptable if CPGs expect to overcome the challenges and see significant efficiency gains. CPG supply chain enhancements are now available in the cloud to provide insightful data, eliminate redundancies and become proactive in decision making for optimal efficiency.
You can check the collaboration, business intelligence and CPG supply chain enhancements in modern cloud based planning software in a free trial today. Choose a free Microsoft Dynamics ERP Demo.
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