________________________________________________________________________________________________________________________
Leveraging the latest data
The biggest challenge CPG brands face in creating more agile inventory management strategies is leveraging the latest data across the organization . Brands often struggle with sharing information throughout their internal organization to ensure that teams are aligned on a single source of truth . When teams across sales and operations do not leverage the same data , organizations risk OOS or excess inventory from misaligned plans .
For example , if a company ’ s marketing team does not have visibility into inventory , they risk running a promotion on an out-ofstock product , wasting advertising dollars and frustrating consumers . This is particularly true during peak seasons when internal teams need to communicate far enough in advance to ensure that available inventory supports sales and marketing plans . Retail partners must also be aware of brands ’ inventory to support their in-store promotions .
Data sharing and collaboration ensure that retail partners and CPG brands make decisions based on the same information and communicate across teams to get products on shelves when and where they ’ re needed . When organizations establish clear processes for data sharing and utilization , they can create a framework that guides or even automates decision-making based on the latest insights so that when inventory levels fluctuate or sales trends shift , all teams know how to respond .
Managing supply chain stage gates
Once data is accessible throughout the organization , teams from procurement , manufacturing , warehousing , distribution , advertising , and marketing departments can effectively communicate to make informed decisions and optimize inventory and sales .
Data-forward CPG brands are leveraging data to build detailed plans based on different stage gates in the supply chain . New product launches are one area where organizations must align on plans . Knowing timelines for sourcing raw materials , manufacturing , and transportation means sales and supply chain teams can determine appropriate safety stock levels at each stage of the process to capture sales upside while minimizing overstocked inventory and costly reallocation of products .
Another approach that is gaining traction with CPG brands is using data to inform Collaborative Planning , Forecasting , and Replenishment ( CPFR ). Through CPFR , brands not only adjust their plans internally , but also work collaboratively with retailers to align marketing and inventory strategies and allocate their products to specific store locations . Using the latest data , brands can work with retailers to continuously adjust their plans based on how inventory is actually selling , versus using a static number to ensure that sufficient ( but not excessive ) inventory is available to support sales .
Are zero waste supply chains a reality ?
Real-time data availability also helps brands to build more sustainable supply chains by reducing spoilage and waste . Particularly for the food industry , it ’ s critical to ensure that excess inventory is not delivered to avoid waste . By leveraging the latest data and insights , brands can proactively adjust inventory levels or recommend shifting inventory to other locations to prevent spoilage .
For example , Chosen Foods was able to leverage real-time data and insights on their Distribution Center ( DC ) inventory to support rapid growth while achieving nearzero food waste . Through detailed visibility into DC inventory down to the SKU level and by monitoring their spoilage risk dashboard , calculated by weeks on hand and weeks to expiration , Chosen Foods can quickly determine if they need to run promotions or redistribute products before they go to waste .
18