Inventory Optimization for a Renowned Client in the CPG Industry Helps Maintain their Inventory Levels

Dec 28, 2017

Client: A leading CPG industry specializing in offer consumer products

Area of engagement: Inventory optimization 

Despite the slowing GDP growth and currency weaknesses, the CPG industry is witnessing a migration from offline to online channels to reinvent themselves in the market. With the recent digital advances, CPG companies are thinking beyond the conventional shopping to create and enhance the shopping experience for the customers. The consumer behavior and needs are changing rapidly and customers are embracing technologies to make their tasks such as shopping and cooking more convenient and easy. To remain competitive and meet the altering preferences of the customers, prominent companies in the CPG industry are looking to refine their existing operating models and devise winning go-to-market strategies to improve their brand innovations and increase their profit margins. Although the CPG industry is witnessing a promising growth through advances in the technology, several factors will likely affect the growth of the industry including:

  • Changing consumer demands: Today, consumers are more informed and are shifting toward healthier and sustainable options. It becomes essential for the CPG companies to be more consumer focused and address the changing demand of the consumers in a cost-effective and seamless manner. Also, organizations need to ensure that the time-to-market for the products should be curtailed.
  • Shrinking operational margins: With the relentless growth of the competition in the CPG industry, organizations are facing challenges to deliver high-quality products while curtailing the operational costs. Moreover, the rising regulatory pressure is forcing companies to mitigate operational risk and manage non-conformances.

[spacer height=”20px”]In order to address these challenges and efficiently manage their supply chain process, organizations are in need of an inventory optimization solution. Inventory optimization helps organizations eliminate out-of-stock situations while improving efficiency and curtailing inventory costs.QZ- Request free proposal

The Business Challenge

A renowned client in the CPG industry with a considerable number of stores spread globally wanted to maintain their inventory levels to meet the rising demands of the customers. The client wanted to include demand forecasting capabilities to increase the efficiency of their inventory planning process. With the help of inventory optimization solution, the client wanted to seek ways to collaborate with vendors and customers and exploit the value of IT to optimize cost and quality of the products offered. In addition, the client also wanted to forecast the demand for the products and maximize service levels to meet the growing demands.

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Inventory Optimization Benefits

Strategies that we recommended based on our analysis to drive customer loyalty.

[spacer height=”20px”]Beyond the traditional supply chain management, the inventory optimization solution offered by Quantzig helped the client in the CPG industry optimize their operations and ensure the right product is available at the right time. Moreover, the engagement sought ways for the client to improve the quality of the products and ensure that the product delivery is carried out at a minimal cost. The inventory optimization solution also offered better visibility into the supply chain from the manufacture of goods to the distribution of products.

Inventory Optimization Solution Predictive Insights:

Quantzig’s inventory optimization solution assisted the leading client in the CPG industry improve the product quality and optimize their supply chain network design. Moreover, the solution assisted the client gain better visibility into warehouse operations and reduced the time-to-market for the products offered.

The Future

The future of the CPG industry will be marked by innovations with the advent of connected consumers and digital channels of commerce and engagement. Moreover, an integrated supply chain and product innovations will drive the competency of the CPG industry over the years.

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