Solutions for consumer packaged goods manufacturer

Industry Focus

The consumer packaged goods (CPG) manufacturing business in the global industry, It serves customers ranging from small shops and convenience stores to mega-store chains and warehouse clubs that increasingly dominate the market. For example, growth in the domestic and abroad consumption of processed food is growing very fast and will increase the opportunity of packaging industry.

Challenges to industry

1. Customer-specific requirements (packaging, labeling, delivery requirements, etc) that are difficult to manage and implement efficiently

2. Fast answers to questions about delivery, price and availability

3. Fewer retailers to sell to, forcing high risk with the potential loss of anyone customer.

4. Old inventory is not just expensive due to carrying costs, it also goes bad

5. Seasonal buying forces large risks in inventory planning

6. Internal inefficiencies erode gross profits, diminish customer service and slow growth.

7. Lack of flexible systems slows ability to offer new services and products.

8. Constantly changing products can make it difficult to properly stock.

9. Short product life creates challenges in inventory management, business systems, and customer satisfaction.

10. Approximately half of all products from manufacturers fall-which ones should be stocked?

Customer Concerns

1. Customers are demanding different services –custom reports, RFID systems, forcing a great deal of flexibility required upon the distributor

2. Retailers drive for efficiency forcing new technology upon the distributor (EDI/XML, ordering, web portals, RFID, bar code)

3. Retailers are demanding new services (shipments within a 2-to 3 hour window, special packaging or palletizing, etc.) forcing new processes into the operation

4. Retailers demand lower pricing while operations is still not integrated, placing a squeeze distribution margins.

5. Every customer wants a different custom service (palletizing, delivery, reports, etc)

6. Product life cycles increasingly short _ must manage operations to keep obsolete stock off the shelves.

7. Manage supplier pricing, promotions, and policies

8. Unexpected fluctuations in demand forces higher safety stock levels with products that have a defined, sometimes short , shelf life

9. Increasingly short lead times force exacting management of customer orders.

10. Difficult relationalizing technology investment with razor-thin margins

11. Operations needs to more accurately use sales data to create more reliable forecasts.

12. Purchasing must collaborate with sales and customers to understand and plan for demand accordingly

13. Product shelf life must be managed along with the customer’s order requirements

Source: Microsoft Industry/Vertical Marketing Messaging Guide Consumer Packaged Goods (CPG) Distribution - Nov 2008

Solutions

To thrive in this industry, Vantage Business Solutions will help you to deliver a well integrated business solution - Microsoft Dynamics 365 that can help you to respond to your customers, anticipate consumer trends, and retain tight controls over operations. These integrated applications can help you succeed by speeding products from time of concept to the store shelf, by removing waste from operations, and by meeting the demands of your retail customers and consumers.

Benefits

•Meet retailer demands. Microsoft Dynamics 365 integrate with your manufacturing and financial applications, they can help you more closely monitor the flow of products to your customers and helps to build customer satisfaction and loyalty.

•Respond to customer trends. The system can help you gather the information necessary to get approvals quickly as well as establish the required database for bills of materials, quality controls, and other aspects of the new product. And can help you evaluate, redesign, and improve existing products with less time and expense than the first time.

•Improve internal operations. Use planning, forecasting, analytics, to identify and quickly respond to your key performance indicators in manufacturing, sales and promotions. Microsoft Dynamics 365 can help you start operation more quickly and collaborate more effectively with partners and suppliers. You can also enhance communications within departments to help reduce lost messages and miscommunications that often contribute to lost profitability.

Source: Benefits of Microsoft Dynamics solutions for CPG manufacturers

Learn more Microsoft Dynamics 365 for Finance and Operation

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