________________________________________________________________________________________________ Global Strategy
interconnectedness of and visibility into a CPGs’ processes also becomes more important. This isn’ t to say supply chain visibility in itself isn’ t critical. Rather, it’ s just not enough.
When disruptions and volatility rule the day, you need visibility through the entire value chain. That enables a supply chain to bend rather than break. You enable bend in part by adding buffers and backups in supply chains that globalization had squeezed lean to the point of brittleness. You also get bend by distributing the weight from supply-chain pressure points across other business functions.
Tariffs are just one example
As an example, assume hefty tariffs are expected in a few months – something CPGs have recent experience with. There’ s motivation to produce and sell more products before the tariffs hit, so you plan for that. That touches finance – where will the cash come from? – and also sales and marketing, which may need to move products fast to make room in warehouses that logistics must then adapt. What’ s the pricing strategy? What promotions should we consider? How will we be sure we can deliver to our wholesalers? How will retail shelf availability hold up?
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