Every business is subject to demand volatility, supply shortages, extreme weather, tariffs, transportation roadblocks and other disruptive forces. But Consumer Packaged Goods (CPG) companies face special challenges today as they try to profitably, precisely match changing supply with shifting demand. In addition to the standard list of disruptions, CPG companies must also contend with the complexities of omni-channel sales and promotions, product seasonality, shelf life and perishability, new product launches and social media influences.

Despite these enormous challenges, retailers and consumers still depend on CPG companies to get the right product to the right place, at the right time, at the right price. Successfully accomplishing this generates revenue, boosts profit margins, and builds strong retailer and consumer relationships. Failure to have products in stock leads to lost sales and damaged loyalty that can have far-reaching effects. In today’s global, omni-channel marketplace, consumers and retailers can usually find another CPG brand or private-label alternative.

Think beyond the linear supply chain

More often than not, the disruptive forces that impact CPG companies originate outside the four walls of their enterprise. Disruptions frequently originate with suppliers, co-manufacturers, transportation carriers and retail customers. But too many CPG companies are focused on their own internal operations and managing data silos in linear supply chains.

What’s wrong with this approach? The linear supply chain is simply not equipped to deal with disruptions and establish true operational resilience. Most CPG companies struggle with siloed systems, scattered data and a lack of real-time connectivity. When an exception occurs at any point, not all stakeholders are aware of it at the same time—and there’s no collaborative process for addressing it. The results include delays, inefficient decision-making, increased costs, and dissatisfied retail customers and consumers.

The truth is that most disruptions can’t be solved optimally by a linear CPG supply chain that lacks network-wide connectivity and collaboration. If there’s a supply shortfall, new sources of supply must be found. If a third-party carrier fails to deliver, the answer also lies outside the four walls of the CPG company.

But end-to-end networks are rarely connected in real time. Individual partners have their own data siloes and systems. For most CPG companies, addressing exceptions at the network level today requires cumbersome manual analysis and hands-on communications that can’t keep pace with the incidence of disruptions. By the time a disconnected, siloed network arrives at a resolution, the disruption has probably already significantly impacted cost, service and revenue outcomes.

CPG companies aren’t alone in their disconnected supply chain approach. Research has shown that 71% of companies have limited or no visibility beyond Tier 2. This limits their ability to make proactive, real-time, data-driven decisions in a collaborative, connected way across all partners.

Imagine a more connected future

While it might sound nearly impossible to connect all network partners in real time, integrate their systems and data, and create collaborative decisions and workflows, Blue Yonder Network is built for this purpose.

Blue Yonder Network is an intelligent, multi-enterprise, AI-enabled solution that gives CPG companies real-time visibility and actionability across not just their own operations—but also across the larger network. Blue Yonder Network provides CPG companies with:

  • A single view across every partner, every region, every site and every system
  • Real-time visibility and actionability for every order, every SKU and every shipment
  • A single version of the truth via shared systems, actionable data and analytics

Backed by a connected network, CPG companies can operate a supply chain that dynamically flexes under pressure. They can seamlessly coordinate with all trading partners to optimize the flow of goods, time to market, and retailer and shopper satisfaction.

A missed inbound delivery from a key supplier? The network collaborates to fill the gap in real time. A transportation route is blocked by extreme weather? All affected partners explore solutions, from alternative transportation modes to new sources of inventory.

Increase your command and control

Blue Yonder Network is equipped with next-generation control tower capabilities called Supply Chain Command Center. It automates the monitoring of overall network health, alerts for potential issues as they emerge, and assesses their impact—then proposes the best fixes and applies them quickly, before serious problems develop.

No one company owns all the data within the supply chain. Instead, it’s siloed among partners, changes constantly, quickly becomes outdated, and is usually shared manually, without one single version of truth. Blue Yonder Supply Chain Command Center collects, consolidates and transforms network-wide data into action.

Within each partner organization, cognitive dashboards offer analytics and insights for each user role. Not only does the Blue Yonder Network collect data from a variety of sources, but it also transforms the data for each partner’s unique goals and objectives. Each network participant gains insights into overall network health, potential disruptions and their impacts, and risk-mitigation measures. All partners operate from a single version of the truth for seamless collaboration and connected, more predictable outcomes.

Discover the “network effect” today

CPG companies face tough challenges—but the great news is that they aren’t acting alone. They’re backed by a powerful community of trading partners that can flexibly absorb shocks and act with agility.

The key is linking these partners in real time, so “the power of many” can be applied to every supply chain issue, large and small. At Blue Yonder, we call that the “network effect,” and we’re seeing incredible results from our customers who’ve created an AI-enabled, connected partner community with Blue Yonder Network.

The end-to-end, next-generation, intelligent command center for the future is ready today. Start increasing your multi-enterprise visibility, collaboration and disruption responsiveness by contacting Blue Yonder.