Procurement for Consumer Packaged Goods (CPG)

It is time for the Consumer Packaged Goods (CPG) industry to adopt a philosophy in which companies succeed by:

  • Creating new revenue streams.
  • They are competing on value.
  • Driving profitability via higher volumes and prices (vs. lower costs).

Consumer Packaged Goods industries are growing at an exhilarating rate and will consume some $64 trillion worth of consumer packaged goods by 2025, according to a McKinsey study. Companies are expanding into new geographies and continuously innovating to meet demands from digitally conscious and connected consumers.

However, risks of disruption are continuously on the horizon. CPG procurement teams are challenged with consistently finding new profit pools within value chains while achieving and maintaining global supply-chain transparency and systematic compliance to an expanding array of government regulations worldwide.With deep expertise in the CPG industry and advanced procurement suite offerings, EquipUpcan create a procurement infrastructure that will help your CPG company to grow sustainably and be consistently profitable.

Purchasing for the CPG Industry Challenges

Some of the most significant challenges for contemporary CPG companies and their procurement teams include:

  • Entering new global markets and capturing larger shares of emerging and developed markets.
  • Exploiting rising sophistication among retailers and retail channels for mining and responding to Big Data captured from consumers (demand-driven supply chains).
  • Preserving already-slim margins while increasing product mix due to geographic, demographic and technological drivers.
  • Accelerating supply-chain speed driven by competition among retailers and retail channels – for example, online versus bricks and mortar.
  • Coping with the commodity price super-cycle, which has seen certain commodities double in price and price volatility nearly tripled since the turn of the century (with no end in sight).
  • Managing global supply-chain risks associated with the proliferation of counterfeiting, expanding oversight and regulation around consumer product health and safety.
  • Producing cost efficiencies to offset the expansion of CPG taxation – for example, new taxes aimed at promoting more health-conscious consumer choices.
  • Sourcing for brand equity – for example, buying from environmentally, health & safety and socially responsible/conscious sources as driven by consumer values and preferences.

How We Can Help

EquipUpcan help you to drive new growth, enhance profitability and build your brand worldwide.With our customized source-to-pay procurement suite that is highly attuned to the CPG industry's unique requirements and challenges, we help your business to perform better.It helps you to track your savings and collaborate better by:

EquipUp understands the challenges its consumer products & services clients face and helps them develop strategies and solutions geared at overcoming these difficulties. We take a holistic approach to procurement, providing procurement technology, strategic sourcing, and procurement outsourcing to help our clients develop a stronger procurement infrastructure while realizing savings. This allows CPG companies to focus on the key issues defining their industry today such as measuring and managing marketing, embracing the potential of the internet, and going “green” while reducing overall costs.

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