The Increasing Digitization of Supply Chains in the

Consumer Packaged Goods Industry

Consulting and Enterprise Solutions

Digital Disruption in the CPG Marketplace

Consumers have the new advantages of:

Search, purchase,

sharing, influencing is

all much faster

Speed

Options have expanded with

crowdsourcing, service

sharing, home delivery, and

so on

Choice

Abandoning shopping carts

online is easy

Low Cost of Switching

The Imperatives for Success

Agility through better

visibility and control

Customer centricity and

personalization

Collaboration with customers,

suppliers, partners, and even

competitors

Consumer Packaged Goods (CPG) companies need to embrace:

Get There Faster with Analytics

Learn about customer sentiments

in real time

Understand customer behavior:

search details, path to purchase,

preferences, consumption, and

feedback

Improve products and services,

delivery options, planning, and

performance, especially useful

for products with short shelf lives

The abundance of data lets you:

Read MoreTweet This

Ride on Connected Commerce

Crowdsource products or

services through bids or auctions

Partner with services companies

for home delivery or order pickup

services

Read MoreTweet This

For example, Walmart and other retailers are now offering consumers the capability to order on line and their

associates will pick the order for pickup at a locker or drive up. Consumers are using Uber and other ride-

sharing services to pick up and deliver their orders.

Anticipate Customer Demand

Monitoring technologies give you:

Capabilities to even

monitor ‘cravings’

through wearables

‘Point of demand’ data

about consumer

behaviors well ahead of

the ‘point of sale’

The ability to monitor

consumption and

automatically replenish

products

Read MoreTweet This

Save Costs and the Environment

Optimal and

reusable packaging

1

Innovations in logistics can boost cost-efficiency and reinforce environmental sustainability, with:

Delivery sharing

2

Efficient transport

3

Read MoreTweet This

Restructure for Omnichannel Opportunities

When your consumer’s mobile app tells you she’s near a

store that sells your product, do you:

Send her an offer to buy online (at a lesser

cost to you), or

Send her an offer to buy from your retail

partner based on a collaborative

marketing program?

It’s time to re-evaluate your relationships with value chain partners and with consumers.

Read MoreTweet This

Focus on Profitable Omni-channel Operations

Read MoreTweet This

Account for shifting demand

(in-store, online, mobile) and

increased fulfilment options (store,

home delivery, pickup location)

with flexible network design

Design an Optimized

Fulfilment Network:

Architect a Suitable

Fulfillment Path:

Select the optimal cost-to-serve

flow-path for dynamic

order fulfilment

Understand Changing

Demand across Channels:

Shape or shift demand from one

channel to another for optimized

cost service, and achieve optimal

demand distribution across

channels dynamically

Connect Supply Chain Silos

This will enable personalization, speed, and connectivity. Effective demand management can increase return

on capital employed (ROCE) by over 30%.

Procurement,

manufacturing, distribution

Engineering, design,

marketing, sales

Executive governance,

finance, IT, HR

Demand Creation Demand Fulfillment Demand Performance

Facilitate digital collaboration across the functional silos of:

Read MoreTweet This

Create a Digitized, Dynamic Supply Network

Design a roadmap for

digitization and analytics

maturity

Adopt scientific methods for

demand forecasting,

segmentation, and supply

network simulation

Become agile with methods

such as Rapid Iterative

Experimentation Process

(RIEP) to quickly prototype and

implement the best ideas%

%

Read MoreTweet This

12

Copyright © 2016 Tata Consultancy Services Limited

Follow us on Twitter

Follow us on SlideShare

Get insights from TCS experts and thought leaders

The Increasing Digitization of Supply Chains in

the Consumer Packaged Goods Industry