Managing Cpg Supplier Risks: Looking Beyond Legacy Services
Cpg Supplier Management
Risks associated with the supply chain of consumer packaged goods (CPG) are often understated. Companies relying on legacy managed services to manage the complexity of supplier relationships or the maintenance of critical inventory data often fall victim to unpredictable supplier disruptions. This can cause significant problems, often manifesting as cost overruns or worse, complete loss of material sources. more proactive approach is needed to protect incoming and outgoing deliveries of CPG products and software-based solution can provide the required level of protection.
When considering the best strategy to mitigate supply chain risks in the consumer packaged goods sector, it is important to take into account the balance of cost and effectiveness when choosing technological solution. Legacy services are not equipped to efficiently and accurately report critical order details or give real-time updates when supplier terms and conditions change. They also tend to be costly and slow to adapt, leading to delays and disruptions.
Software-based solutions, on the other hand, are much more effective at capturing and monitoring order details, tracking and alerting when supplier contract changes, and providing in-depth analysis of supplier performance. Such solutions provide individualized dashboards to provide comprehensive view of supply chain operations. Furthermore, they can often be customized to fit companies specific needs, providing cost savings as well.
Accurate tracking of supplier performance and risk provides valuable insights for finance executives to make informed decisions and maintain proactive control over CPG supply chain operations. Moreover, such Softwaresolutions can reduce miscommunication and ultimately automate order shipment, reducing time-to-market of new products.
In the current landscape of supply chain risks, standard managed services are no longer enough. Companies must invest in software-based solutions to gain control over the complexities of CPG supply chain operations. Software-based solutions are more effective and tailored, tracking incoming and outgoing logistics in real-time and providing greater insight into supplier performance and terms. By providing greater control and visibility of the entire supply chain process, CPG companies can benefit from reliable deliveries and cost savings in the long run.
