Retailers and CPG companies faced with the twin pressures of low inflation and a lack of volume growth are discovering new methods of driving profit improvement from some surprising sources within their supply chains.
The supply chain has long been relied on as the great enabler of retailer and CPG company strategies, but in recent years as anemic consumer demand made profit growth harder to achieve scrutiny of the supply chain intensified. That scrutiny has paid dividends as service providers have been able to identify deficient processes, recommend corrective actions and produce quantifiable gains in efficiency.
To illustrate what this looks like, industry leader GENCO documented a real world experience with a major supplier who achieved tremendous gains. The process and payback GENCO achieved for the supplier can be viewed in greater detail by clicking here.