The consumer goods industry has always demonstrated resilience during economic downturns, providing investors with steady returns. However, the landscape is rapidly evolving, with consumers increasingly seeking brands that align with health and ecological values, while others opt for more affordable private-label products. High inflation is putting substantial pressure on the cost base, whilst social media, online shopping, and the evolving shape of the high street and consumer habits are all affecting the competitive landscape. This complex environment poses significant challenges for even the most well established CPG brands, necessitating them to continuously adjust course in order to stay relevant.
As a consequence, the focus on cost management and assessment of investment priorities is intensifying in order to navigate these challenges effectively. To thrive in this highly competitive market, accurate and up-to-date insights into cost and profitability drivers, that enable informed decision-making, and understanding of how current strategies will impact future forecasts, are vital for CPG manufacturers.
Real-time cost analytics is essential to support driver-based planning to continuously optimise operations and plan and forecast future costs and profitability. Those CPG businesses that can do this will capitalise on new opportunities, maintain customer relevance and drive profitable growth well into the future.
By adopting driver-based models, businesses gain the agility to anticipate and adapt quickly to future trends and evolving market dynamics. Predictive capabilities lead to more data-driven choices, effective resource allocation, and enhanced budget planning and strategic decision-making. Ultimately, this elevates overall performance and competitive advantage in today’s dynamic business landscape.
Achieving these benefits is facilitated by harnessing the potential of fit-for-purpose digital software solutions available today. They enable real-time access to driver-based insights by integrating business planning models that drive greater collaboration on day-to-day decision-making so that the business can make minor course alterations on a daily basis. This transforms management culture into a finely tuned ship, operating towards a standard set of coordinates to arrive at the desired destination. For most CPG companies this means setting a course for profitable growth by staying a few steps ahead of the competition and ensuring relevance to consumers in the long term.
In our latest white paper “Navigating Change: How Consumer Products Companies Drive Profitable Growth in an Evolving Market” we outline ten compelling reasons for adopting driver-based models and explore how predictive capability and data-driven decisions improve overall performance and competitiveness in this dynamic marketplace. Download your copy here.
Our webinar, “Managing Profitability in an Inflationary Economy,” showcases the success story of Savencia, a global branded food manufacturer. Sign up for a deep dive into how Savencia Poland removed spreadsheets from FP&A and Planning processes and underpinned them with cost and profitability insights that inform planning and daily decision-making at all levels of the company.
Meanwhile, if you are still grounded in spreadsheets and legacy planning systems, we’ll be happy to talk through your requirements and show you how connected planning on Anaplan’s cloud-based planning platform can get you back in the air.