How Digital Transformation Is Creating
Growth Opportunities for CPG
New Digital transformation is connecting billions of people worldwide,
empowering consumers and enabling consumer packaged goods (CPG)
companies to manage the enterprise more effectively and efficiently to drive
growth.
Despite rising commodity costs, the CPG industry is now in recovery mode
with companies focused on their growth agenda and looking to international
expansion as an opportunity to enhance both the top and bottom lines. The
value of shipments in the CPG industry rose 6% to almost $124 billion in 2010
versus the prior year.
These trends were outlined in Thriving in a Connected World, a new report from the Grocery Manufacturers Association (GMA) and PwC. According to the report, major opportunities for CPG companies are being created with digital technologies.
“CPG companies of all sizes harnessed digital technologies in the past few years to become more productive and efficient,” said GMA President and CEO Pamela Bailey. “This study shows how food, beverage and consumer products manufacturers are leveraging innovation to optimize service to consumers and trading partners.”
Business mobility has been shown to boost productivity in sales, supply chains, distribution centers and stores, as well as to contribute to individual productivity. To determine the best use of mobile devices across the workforce, the report suggests that workforce productivity should be viewed through three lenses:
- Mobility on the floor where workers use their digital devices for instant information
- Mobility in the field where mobile employees can make decisions on the spot with their devices
- Mobility in flight where sales representatives, who historically travelled to each location to analyze performance, now use mobile technology to monitor activity, thereby increasing productivity.
The report notes that as devices and wireless data networks grow, rich multimedia capabilities will continue to be added to business work flows and businesses will continue to capitalize on the opportunities mobile devices create within the workforce.
“Today’s consumers are more empowered with greater control of their shopping choices with the growing array of digital technologies like smart phones, tablets and social media. And they aren’t shy about posting their feelings online about products, where they literally are handing over reams of potential insights that can create a tremendous opportunity for CPG companies that can find the patterns in the noise,” said Susan McPartlin, PwC’s Retail and Consumer Industry Leader.
“Just a few years ago, digital information meant one thing to senior executives - risk. However, companies are no longer just thinking ‘defense,’ they are using the digital data to advance their competitive position, help improve all aspects of operations and get smarter about international expansion plans,” she said.
Thriving in a Connected World contains articles on several key industry trends:
Collaborate to Keep Up With Digitally Empowered Consumers
Will companies match consumers’ demand for more information and product where and when they want it? Matching this demand will require collecting, sharing and analyzing data together. Retailers and suppliers can no longer afford to remain apart because they worry about the accuracy and security of shared data.
Maximizing Multichannel Growth
Brick-and-mortar stores haven’t gone away, but consumer product manufacturers and retailers alike recognize the need for multichannel strategies that optimize high-growth opportunities in the digital channels.
Business Mobility and the Prospects for Leaps in Productivity
The accelerating rate of mobile device adoption is spurring business mobility and creating tremendous opportunities for boosting productivity across the entire CPG value chain.
For more information: www.gmaonline.org.
DIGITAL MARKETING
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