The next 10 years will bring an estimated $2.95 trillion in revenue and efficiency savings by CPGs such as L’Oreal, Mondelez, Unilever and Procter & Gamble, who are investing in digital transformations, per a 2017 report from Accenture and the World Economic Forum (as we mentioned in Part One.)
To cope with market trends, the report advised CPGs to develop new, hybrid business models; to adopt a “modern intelligent enterprise” for greater agility, and to “unleash business value through new business models.” At present, the researchers say, 28% of digitizing their supply chains using Internet of Things (IoT) and “only 53% have used big data analytics to manage their supply network.”
While much attention is given to big data at the highest level and transportation downstream, few of today’s Great Thinkers are aware of the benefits to be gained by digitizing the “customization value chain.” That is, the business processes and information exchange requirements of CPGs and external partners working together to modify packages and products to suit the ever-increasing need for customization and fulfillment in traditional retail channels as well as direct-to-consumer e-tail models..
This project has helped standardize the workflow from initial estimates through execution. It has provided a tool to measure and monitor efficiency and leverage use of rate data to improve profitability. In addition, it has provided the ability to conduct month end closings and invoicing from one centralized location.
Change doesn’t happen overnight, but CPGs should follow the advice Nulogy has given suppliers: Establishing successful supply chain partnerships is a matter of running a marathon, not a race.
Years of experience in the “customization sector” have led brands and outsourced service providers to agree: Nulogy Corp. — is the first and by many accounts only solution provider that establishes a proven standard for optimizing interactions in this arena. The company’s SaaS-based technology and exclusive focus on connecting contract manufacturing networks, manages billions of dollars of annual transactions in a unified platform that requires no modifications to outlying systems (ERP, WMS, etc.). This technology transforms internal systems across multiple sites into a unified whole:
Moreover, this standardization spans both form and function with an IT platform based on secure, real-time cloud and EDI communications and unique best-of-breed functionality. Instead of making limited gains with inflexible, generic systems or ad-hoc fixes, users gain a broadly integrated, collaborative platform with detailed order execution of SOPs based on established industry best practices, terms and business processes. In short, Nulogy provides…
When suppliers to the retail supply chain — both brands and their external service suppliers — commit to a standard platform, the benefits of real-time collaboration create new opportunities for innovation. These value-added partners, in turn, add greater value to the retail customers and end-consumers they collectively serve.
See how 3PLs, contract packagers and corrugators can win by combining ERP with cloud apps
Jason is a co-founder, CEO and brand ambassador for Nulogy. He is focused on corporate development, executive leadership, and understanding the evolving landscape of Nulogy’s clients. He is also on Nulogy’s board and speaks throughout the industry on the agile supply chain.