Customer Centricity Supply Chain | CP | Deloitte Netherlands

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Improving the effectiveness of the CPG supply chain

From one size fits all to customer centric

Do you want to fulfil the increase demand for all your consumer expectations? Increasing your efficiency and meet the demands long before the orders. Start your journey to a customer centric supply chain here.

Key market challenges per channel

Consumer Packaged Goods (CPG) companies were mostly focused on an efficient and well-organised supply chain – which in many cases led to a single supply chain for all customers. However, the CPG landscape is changing dramatically. CPG demand growth is shifting from traditional channels to Limited Assortment Retailers (LARs) and e-commerce. Super- and hypermarkets seem to be the only stable factor: in most markets, they are still by far the largest channel in terms of volume (>70%). 

In order to meet the specific demands of each channel and make the right decisions within each supply chain, CPG companies need to understand the goals, needs and challenges of these “Big Three":

  1. Limited Assortment Retailers aim at high replenishment rates with optimised product portfolios. They provide a high volume of basic goods and they need to streamline efficient operations throughout the supply chain.
  2. Supermarkets and hypermarkets need reliable last-mile delivery capabilities. As they seek to meet the increasing service level expectations of consumers, they expect delivery operations from CPG companies that are highly flexible as well as reliable and transparent. CPG companies should have agile and adaptable supply chains, as well as advanced planning capabilities to prevent overcapacity.
  3. E-commerce is all about speed, availability, and customer experience. Requiring delivery capabilities that are reliable as well as highly customised. This customisation impacts all parts of the supply chain, from product design (colour, materials) and manufacturing to packaging and (same-day) delivery.

 

Meet the demands before the orders come in

with our 5 steps action plan for a customer centric supply chain, including examples and proof of concept

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Building a more customer centric supply chain

How to adjust or build supply chains that meet these specific demands more upstream? At the moment, many CPG companies are able to fulfil these demands once the orders come in. However, it would be much more efficient and beneficial to meet them earlier on in the supply chain. In other words: to have a truly customer centric supply chain.

Our report on customer centric supply chain contains an detailed action plan, which is a good starting point. The business strategy should be leading in the entire process. What are the goals and aspirations of your CPG company? What channels (or even individual customers) are pivotal for the future of the company? In other words: where do you want to play?

How we can help?

Many companies are facing the challenges raised by the high demands from each channel. However, this is also an opportunity to create a competitive advantage if you are able to act strategically. Deloitte can help with this journey of maturity from one size fits all to a strategically differentiated supply chain that meets and exceeds the needs of your customers.

We have a dedicated team of experienced consultants focussing on supply chain optimisation, ranging from strategy setting to realising tangible improvements with our clients. We can collaborate with you in all the steps of this journey and help you e.g. design the network, differentiate your planning and logistics processes, and plan the roadmap.

Ready, set, go!

Are you ready to shift from a one size fits all to a strategically differentiated supply chain that meets and exceeds the needs of your customers? Feel free to contact us, and we'd be glad to discuss the potential impact on your business, and whatever questions you may have.

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