5 minute read

As a contract packager, you’ve seen firsthand the changes happening in today’s consumer goods supply chain. Shorter lead times. Faster turnaround times. More product SKUs to deliver.

These changes are being driven by seismic shifts in the consumer goods market: the rise of upstart brands exerting increasing pressure on incumbents; evolving consumer tastes that are prompting brands to develop new products and product variants; the emergence of new retail formats; and rapid channel proliferation. Consumer demand is diversifying and upending the one-size-fits-all paradigm, leading to a volatile, hyper-fragmented consumer market.

In order to serve more diverse market end points, consumer brands need to bring increasingly differentiated products to market. As a result, brands are shedding manufacturing assets that were built for an era of scale and stability, and increasingly outsourcing their logistics to you—the contract packaging supplier—allowing them to react faster in the new era of complexity.

Tackling complexity with agility

As co-pack suppliers, you are the muscle that brings consumer brand products to the finish line: in the right format, in the right quantity, at the right time, and with quality and speed. But as co-packing gains in strategic importance for brands, the industry is becoming more and more crowded with players from dedicated co-packers to 3PLs and corrugators—and your differentiation will lie in your ability to respond to brand customers with greater agility than your competitors.

Major Food and CPG companies continue shedding assets, driving out costs and optimizing margins. This is especially true among stable and mature brands. Additionally, new product development requires additional, flexible capacity.
2018 CPA State of the Industry Report

In short: agility is the name of the game. But, what does that mean for you?

The faster, more responsive, and smarter your operations, the more successful your brand customers will be—and the more they will look to you to execute on their late-stage customization requirements. But, what is required to unlock agility for your business?

The power of digitalization

Becoming an agile supply chain partner requires a level of automation and intelligence that can only be enabled by digitalization. Excel and paperwork can only take you so far. If you’re growth oriented and want to scale up to meet your brand customers’ needs, digitalization is critical. Digitalization empowers you to drive more profitable, efficient and agile operations by giving you real-time visibility into your production, improved quality control, enhanced materials management, and greater collaboration capabilities with your brand customers.

Through digitalization, consumer brands and their external suppliers can collaborate more effectively on customizing highly differentiated products to accommodate a wide range of heterogeneous markets, channels, retail formats, and consumer preferences.

Agile Customization defined

Agile customization is our name for this strategic capability within the supply chain. And agile customization takes full advantage of the digitally strengthened partnership between co-packers and brands to form an ecosystem that can respond with ease and speed to a volatile retail and consumer environment.

At Nulogy, we believe that agile customization will be the differentiating factor in successful supply chains of the future, allowing suppliers and brands to thrive and win—and the world’s most forward-thinking co-pack suppliers are helping lead the way.

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Josephine
Written By
josephine-coombe
PUBLISHED
Jul 10, 2019

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