CPG | Retail | Fashion

As a senior leader or executive in the consumer packed goods/retail and fashion industry, it's important to regularly review your global manufacturing operations and the supply chain. The past years has highlighted the importance of agility and resilience in the face of unexpected challenges. It's time to take a closer look at your end-to-end supply chain, operations, and footprint to ensure that you're prepared for whatever the future may hold.

Here are several key trends to consider:

1. Inflation and Consumer Spending

The pandemic and the war in Ukraine have disrupted global supply chains and led to inflation and higher prices for raw materials, energy, transportation, and labor. Consumer spending patterns are also changing, with an increased focus on value and convenience forcing brand owners to rethink the product positioning and related branding.

2. Need for Faster New Product Introductions

The pace of innovation is accelerating, and companies need to be able to bring new products to market quickly and efficiently to stay ahead of the competition. This also includes portfolio management and rationalization of the product portfolio over time.

3.  Omni-Channel

Customers expect to be able to shop seamlessly across channels, which is why it's important to have a supply chain that can deliver the right product at the right time to any channel from any fulfillment center. This requires brand owners to review the feasibility of hybrid fulfillment networks to dynamically route products through the network.

4. Streamlining Operations 

To offset higher costs  and improve profitability, companies need to optimize their operations and supply chain to reduce waste, improve efficiency, and lower costs.

5. De-risking

The pandemic has shown the importance of diversifying suppliers and building more resilient supply chains to reduce risk and increase agility. Key is to have the right balance in regional and global business continuity management as well as incorporating resilience into the footprint, the organization and technology landscape of a brand owner.

6. Sustainability

Consumers are increasingly focused on sustainability, and companies need to consider the ESG impact of their operations and supply chain.

7. Manufacturing and Distribution Footprint 

Companies across the globe are reviewing their manufacturing and distribution footprints as  a key lever for improving efficiency, reducing costs, and increasing agility. Another driver for companies to review their manufacturing footprints is the pressure on labor availability (quantity and quality) in many locations around the globe.

To address these trends, you need to develop and implement effective footprint strategies that optimize your company’s operations and supply chain. This may involve consolidating manufacturing and distribution facilities, diversifying suppliers, implementing new technologies, relocating to new locations and adopting more sustainable practices.

In today's rapidly changing business environment, it's more important than ever before for senior leaders and executives to review your operations and supply chain to ensure that you are prepared for the future. By embracing these key trends and developing effective footprint strategies, you can improve your company’s agility, resilience, and profitability.