Building a consumer-centric supply chain calls for rethinking the supply chain configuration, advanced technologies and people. Our research showed CPGs’ legacy supply chain operating models and organizational structures are a barrier—so it’s time for change.
CPGs need to establish a set of supply chains with a network and assets that meet the needs of each segment. The supply chain assets need to be leveraged at scale across these segments, where possible, to manage the cost base and adjust dynamically to enable responsiveness and resilience. Some companies are adopting more asset-light structures in which they outsource a significant portion of assets and use an ecosystem to be more flexible.
Advanced digital technologies
Customer and product segmentation, collaborative and agile innovation and other mature capabilities rely on digital technology. Companies we surveyed say they lack the right digital architecture and digital capabilities to be connected across the enterprise and ecosystem. This connectivity is needed to enable cross-functional decision making that leads to a consumer-centric supply chain.
Many CPG organizations are siloed, with accountability that is process-based and domain-oriented versus demand-driven, cross-functional decision making. These silos trickle down into the way talent is skilled. Many employees are skilled for a single functional domain and don’t have access to analytics and capabilities that will support strategic decision making.
RELATED WEBINAR: The Consumer Brands Association (CBA) is hosting an industry solutions webinar on November 16, 2021. Join Accenture’s Chris McDivitt and Maria Rey-Marston, along with David Simchi-Levi from MIT, to learn about the Accenture-MIT “stress test” and building supply chain resiliency.