A New Wave of CPG Employment OpportunitiesÂ, Traditional production, sales, and marketing positions will still exist and need to be filled. The demands on CPG companies have come from all sides, and there is no reason to believe that the pressure will ease. CPG companies emphasizing multi-channel buying experiences with a heavy focus on online shopping in the new year will enjoy a significant advantage over those that choose not to adapt to changing buyer … But this need not be the case. In the CPG realm, market domination is bolstered by brand recognition from years in the business, deep pockets, and enormous workforces of intelligent and highly-skilled employees. This year, however, growth enablers have become much more prominent on the priority list, putting greater pressure on the supply chain to perform and highlighting issues related to service levels, inventory, and trucking capacity. Boston Consulting Group is an Equal Opportunity Employer. Get our guide to finding a mobile app that maximizes your field team efficiency and grows your revenue. . Whether itâs Amazon Prime, meal kit services, or any number of the newly-introduced grocery delivery services, consumers increasingly prefer to have their goods delivered directly to their home. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. The start of each new year is a convenient time to assess the successes and failures of the previous year and lay out a new vision (and products or services) for the business and its customers. They face rising competition from a growing number of alternative retail-grocery formats, as well as increasing product proliferation and growing consumer demand for fresher products. Johnson & Johnson, Tyson, General Foods, and Procter & Gamble rounded out the top five large companies—all of which, except for P&G, saw sales volumes increases in 2019. BCG was the pioneer in business strategy when it was founded in 1963. Granted, 73 of the companies on CGT ’s list of the “Top 100 Consumer Goods Companies” for 2019 experienced positive growth in their most recent fiscal year. Change is both inevitable and beneficial. So far, supply chain leaders have had the greatest success with simple plug-and-play solutions for specific supply-chain issues. There is plenty of doom and gloom in the media about pollution and waste caused by industry. For more information, visit gmaonline.org. CPG companies have offset some of these increases by making their warehousing more efficient, cutting warehousing costs by an average of 4.4%. One factor is … A recipe for building customer trust . They use that intelligence to plan new product launches, promotional priorities, and business objectives to start the new year off right and maintain the momentum throughout. The study is based on the 2019 GMA Supply Chain survey of 20 CPG companies, including in-depth interviews with top supply-chain executives and industry experts, and BCG research on supply chain trends and practices. or tackle societal issues important to the consumer. Approximately 26% of the CPG companies we surveyed said that “digital in the supply chain” is a top priority for the business, and about half reported piloting 15 or more digital use cases. These âsuper-winners,â as McKinsey and Co. calls them, also have another trick up their sleeve for growth: consolidation. by rschmelzer June 13, 2019. Inventory dynamics throughout the supply chain reflect these trends. Supply chain leaders among consumer packaged goods (CPG) companies in the US are feeling tremendous pressure in 2019 as the industry continues to undergo seismic changes. In response, many companies are repositioning themselves (and their products) as champions for causes their customers care about. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity / expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws. The study was conducted in 2019 and is based on 2018 data. TORONTO – More than twenty Canadian retail and consumer packaged goods companies, representing a substantial proportion of the nation’s plastic packaging, are among the first to support new global “Golden Design Rules” to improve plastics recycling and reduce landfill and pollution. And finally, they are exploring alternative delivery modes, such as rail, and new digital platforms, such as Uber Freight. The rise of on-demand home delivery will put additional pressure on traditional retailers to re-imagine their sales model, including simple tweaks like evolving their merchandising strategy all the to the point of even reducing physical floor space. Shoppers want literal transparency too.Transparent packaging is on the rise, with glass and clear bioplastic or biodegradable plastic replacing environmentally troublesome petroleum-derived plastic packaging. Not only are these eco-conscious shoppers leaving a smaller physical footprint, theyâre also generally saving time and money. In addition to these factors, constraints on trucking capacity are diminishing the ability to deliver customers’ orders on time and at a reasonable cost. According to this study, over the next five years the Consumer Packaged Goods (CPG) market will register a 3.1%% CAGR in terms of revenue, the global market size will reach $ 2077590 million by 2025, from $ 1838640 million in 2019. On the shop floor, these solutions include digital production planning and online dashboards. Yet growth in trucking capacity has not kept pace, and driver shortages are exacerbating the problem. From 2000 to 2009, economic profit grew 10.4 percent per year; … Dutch shopping in 2019. The Grocery Manufacturers Association (GMA) has partnered with Boston Consulting Group (BCG) to conduct the 2019 Supply Chain Benchmarking Study, the seventh in a series of studies focusing on US CPG manufacturers’ outbound supply chains. With economic uncertainty looming, how can CP executives balance prudent investment strategies with technology initiatives that address the needs of increasingly empowered consumers? These constraints have resulted in higher logistics costs for CPG players. Moreover, sales … That also includes each productâs packaging, which buyers expect to be sustainable as well â compostable, recyclable, and with a minimal carbon footprint. Just as with efforts to resolve the industry’s customer-service issues, however, companies need help from new digital technologies in order to implement these potential solutions, whether in the form of data gathering and decision-making algorithms or of advancing the entire supply chain into the digital age. Itâs hard to overstate the importance of data. Consumer electronics, food products, and other consumer packaged goods get everyday men and women excited about what they can spend their money on in the coming year. The primary cause of the decline in service levels is the behavior of retail grocery chains, which have steadily raised the bar, in particular by cutting their order lead times—from an average of ten days in 2013 to an average of six days in 2018. Recently, CPG leaders have been most worried about their ability to keep service levels high and reduce their days of inventory on hand (DIOH). Such point solutions tend to be relatively straightforward to implement, require relatively little cross-functional coordination, and are generally limited in scope to one area of the supply chain. 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