Better, faster, smarter innovation. Sounds pretty good right? This is a consumer packaged goods (CPG) mantra.
If you work with new products in a CPG company, are you working to improve in-market success for your new product introductions? Are you trying to do this faster than ever, garnering higher market share and revenue more quickly, particularly in this economy? And are you working with fewer resources to get the job done?
The answer is simple and consistent: all of us are!
The more tricky question is how?
Consumer packaged goods companies work toward this “Holy Grail” everyday, bringing their consumers products that meet their changing needs in a fast paced, competitive environment. These are products that are sold in large quantities for a low price. One consumer goods company has $84B in sales revenue and sells most of their products for $10 or less! Think about that.
These are products that are consumed, literally. Personal Care products like toiletries, soaps, lotions or teeth cleaning products. Household items like laundry detergent, household cleaners and disinfectants. It includes food and beverages products that you use and enjoy every day. And it also includes beauty products, like make-up, skin care or cologne.
So how do manufacturers keep up with the changing demands of consumers worldwide?
This is a challenging task, often in an environment of fragmented systems, with functions working independently and little collaboration with global peers. And language barriers add an additional level of complexity.
It seems to me that there is a lot of value waiting to be had for many companies who can solve this conundrum.
Common practices and centrally available information can add significant value. Often times, companies try to string current systems together. Leading companies are implementing systems that are designed to work together seamlessly and are finding significant bottom line results.
P&G is a great example. Below is a link to an article that describes their challenges, obstacles and solution that has saved them $250M annually. This too can happen to you.
