Nowhere is the volatility and disruption in the global supply chain more visible than when day-to-day shoppers experience empty shelves at retail locations. The consumer-packaged goods (CPG) industry is losing massive amounts of revenue from out-of-stock items amid upheavals in the supply chain. Rising inflationary costs, increased commodity volatility, soaring fuel prices and pressure from consumers and governments to improve sustainability records are just a few of the additional challenges that CPG companies need to find solutions for now.
GEP partners with many of the world’s major CPG enterprises to manage the chaos in the supply chain, build resilience and increase sustainability. Our combination of innovative technology solutions, end-to-end consulting and managed services enable our customers to compete and thrive.
At GEP, we have deep subject-matter expertise across COGS and SG&A expenses including direct and indirect categories. We help leading enterprises identify the right supply base and mitigate rising commodity costs. Additionally, our supply risk models and assessments help clients analyze their value chains and become more resilient to disruptions.
With sustainability top of mind for consumers and the C-Suite, we partner with companies to help achieve their long-term sustainability goals. We offer consulting services, execution and technology to help clients drive sustainability across their supply chains. And we go beyond strategy development to support our clients with customized solutions through implementation.
Our software powers high-impact digital transformation initiatives at the world’s leading, most complex and demanding enterprises. GEP SOFTWARE™ provides digital procurement and supply chain platforms that help enterprises become more agile and profitable.
GEP Solutions for the CPG Industry
- Procurement and supply chain transformation services
- Supply chain risk/resiliency assessments and management models
- Sustainability improvement programs
- Advanced analytics and cost modeling
- End-to-end digital solutions in procurement and supply chain
- Mergers and divestiture governance; cooperation value capture
- Digital supply chain optimization, including supply chain restructuring services and integrated planning model design with collaborative planning, forecasting and replenishment
Speed to market pressures impact key strategic categories in the apparel, footwear & accessories space. Procurement professionals in multi-channel firms need to establish systematic means of engaging with partners that remain flexible as a brand grows and can be developed to meet consumer trends. Marketing, supply chain, direct materials, and retail categories, all require unique supplier characteristics and procurement management techniques, and specifically:
- An agile marketing supply base that can quickly scale to meet the cyclical needs of a fashion-driven industry
- Flexible supply chain partners that can respond to shifting consumer demographics and manufacturing hubs
- An emphasis on direct material review and evaluation that ensures that suppliers meet the brand's quality standards while simultaneously controlling cost
- Centrally managed suppliers and procurement processes that ensure consistency amongst owned retail locations
Additionally, diverse supply market dynamics necessitate customized solutions for those industry-agnostic procurement categories in the apparel, footwear & accessories industry. These more “commoditized” product and service offerings lend themselves to rate-based evaluations and high levels of supplier competition.
At GEP, we understand these types of challenges and help our apparel, footwear & accessories clients meet them through a variety of procurement strategies and solutions. By facilitating closer working relationships between manufacturers and suppliers, GEP helps clients reduce wasteful spend and realize savings.
Food and beverage companies face a competitive market, with constant challenges to keep consumers engaged and loyal, while also finding innovative and creative ways to keep costs down. Ingredients, marketing and logistics are key areas of focus when looking for opportunities for increased service and quality, cost reduction, and total overall value.
One of the most severe challenges procurement faces is tracking and managing commodity indices. Unforeseen spikes in prices necessitate a stable and reliable back up of suppliers able to meet the high-quality standards expected — and on short notice. Diversification of the supplier base to ensure continuity of supply is a key concern; balancing this need with traditional supplier consolidation strategies to drive incremental savings is essential
Marketing drives a food and beverage company's consumer loyalty, purchases and sales. Traditional procurement practices need to be adapted to focus on reviewing marketing's investments; reviewing costs and return on investments can yield higher value with more efficient marketing programs
Identifying alternative and innovative solutions within logistics is more important than ever. Proactive management of distribution channels and continuous review for network efficiencies are vital to combat the volatility in fuel and other costs
GEP's dedication to providing real value includes the understanding that cost reduction is not the only benefit we offer — and nor should it be.
We bring a keen understanding of the dynamics affecting the industry, and the ability to adapt core procurement strategies to obtain the best value for you. GEP can help synergize teams to streamline processes, raise service levels, meet quality standards, and reduce cost.
Personal and household goods companies face pressure to stay ahead of consumer trends, develop and deliver innovative products and control brand image.
Purchasing professionals are challenged to develop strategic supplier relationships in key spend areas that keep the company competitive and on the cutting edge of the industry while negotiating advantageous agreements for their organization. Direct sourcing and logistics require unique supplier capabilities and partnerships.
Strict evaluation of raw materials must be followed to ensure they meet quality standards. To stay competitive and innovative, a unique chemical or other raw material may be required that only one supplier can provide, presenting negotiating challenges.
Developing strong partnerships with sellers and ensuring consistent, on-time delivery of products is critical. Significant savings can also be achieved by challenging long-standing supplier relationships in key spend categories.
GEP's comprehensive supplier evaluation and negotiation process ensures that all factors are considered in the sourcing process. In addition to price, supplier capabilities, experience with the company, service levels and competitive differentiators are evaluated.
By considering these factors, GEP consistently helps personal and household goods companies partner with suppliers that meet their competitive needs, while providing the best total value to the company.
Our track record
With nearly two decades of experience working with Fortune 500 and Global 2000 enterprises, GEP knows how to handle the unpredictable. Our record speaks for itself:
- A leading global Fortune 500 quick-service restaurant partnered with GEP for source-to-contract activities and on-demand procurement consulting. We delivered 5-7% savings run-rate on in-scope spend and improved spend under management to 90%+
- Managed $930 million in spend for Fortune 500 Quick-service restaurant
- Managed $1 billion in spend for a global consumer foods manufacturer. Delivered $50 million in savings and achieved 2x growth in spend under management in 4 years
- Implemented a global operating model to drive synergies across the global organization for a Fortune 500 global CPG company. Achieved 5%+ savings run-rate annually across the in-scope spend and an improvement in average PO cycle time by 25%+
- Realized significant improvements in efficiencies through the implementation of automation, catalogs, digital tools, RPA and other continuous initiatives for a global CPG enterprise