These 50 CEOs based their discussions on a brand new industry vision report called ‘Rethinking the Value Chain’, initiated by the CEOs of Coca-Cola and AEON, and supported by Capgemini. The report argues that our traditional business models, traditional definitions of the value chain and traditional forms of collaboration are not up to the challenges that these forces present.
Consumer behaviour has changed forever. The path to purchase is no longer linear and could involve social media, an app, web-based research, an in-store visit and an online purchase, in any order. Can we offer consumers a consistent experience through this journey? Can we give consumers accurate information about a product’s ingredients, provenance and social and environmental impact wherever they see it?
At the same time, the internet has accelerated innovative competition. Established technology firms and an army of internet start-ups move rapidly into the consumer market and do not follow established patterns in commerce. Emerging markets are incubating new retail and manufacturing business models, many of which are also digitally native. Can companies re-engineer their business models rapidly enough to rise to these growing challenges?
China and India are creating expanding urban economies at the fastest pace in history. By 2025, an additional 1.8 billion people worldwide will join the consuming classes, representing annual growth of 3.7 percent. In contrast, rural populations will continue to develop along different lines. In the West, Japan and China ageing populations are creating a massive demographic shift. Can businesses serve all these new markets, with diverging needs, at the same time and ahead of digital interlopers and start-ups?
In the face of these dramatic changes in consumer behaviour, business innovation, economic trends and global demographics, our value chains struggle to keep pace. Consumer industries have made them more efficient but they remain mostly linear: important information is lost in silos and change can be agonisingly slow. They may not help the consumer products and retail industry respond rapidly to the simultaneous, multiple demands they now face.
What should businesses do next? It will mean rethinking the value chain and creating collaborative networks built with consumers at the centre: millennials, ageing consumers, consumers in developed countries and regions and those in urban and rural areas will all play a part in the evolution to a future value network.
To help ensure future value networks strengthen the industry and benefit consumers through the challenges that lie ahead, please read “Rethinking the Value Chain: New Realities in Collaborative Business” – developed in collaboration with The Consumer Goods Forum and with findings and recommendations for what businesses can do now to sustain long-term growth.
For a personalized conversation on what these findings mean for your company, please get in touch: kees.jacobs@capgemini.com
Kees Jacobs
Digital Proposition Lead
Capgemini Digital Customer Experience
STANDARD: The BRCGS Global Standard for Ethical Trade & Responsible Sourcing Issue 2 achieved SSCI Recognition under Scope AI — Social Compliance: Manufacturing & Processing in November 2021.
BRCGS is an established global standards leader, with a rigorous GFSI recognised assurance program that touches every aspect of the 21st century supply chain – from food ingredients to packaging, distribution, retail and beyond. It sets the benchmark for best practice manufacturing, helping to provide reassurance that products and services are high quality, legal and safe. BRCGS is recognised across food and non-food categories as the global standard underpinning brand reputation through compliance, at over 30,000 certificated sites in 130 countries. Visit brcgs.com to find out more.
STANDARD: The Florverde standard for the sustainable production of flowers and ornamentals version 7.2.1 is currently being benchmarked under Scope BI – Social Compliance: Primary Production.
Florverde Sustainable Flowers (FSF) is an independent social and environmental standard which ensures that flowers certified under this scheme have been responsibly produced. This requires flower growers to adopt measures that will protect and enable worker’s rights, implement best environmental practices, and comply with national regulations. FSF also helps safeguard quality by requiring the proper care and handling of flowers.
STANDARD: FSSC 24000 Social Management System Certification Version 1.0 is currently being benchmarked under Scope AI — Social Compliance: Processing and Manufacturing.
The aim of FSSC 24000 is to ensure that social sustainability management system requirements are met, resulting in certifications that assure organisations provide safe and fair working conditions, meet business ethics requirements, and apply due diligence in their supply chain management. FSSC 24000 provides a strategic approach incorporating the Plan-Do-Check-Act (PDCA) cycle and risk-based thinking, which ensures the identification and control of social risk and continuous improvement. This process demonstrates corporate responsibility and facilitates improving the social management systems and performance thus driving impact.
FSSC 24000’s scope of certification includes the manufacturing and processing sector (food and non-food), including its related service provision. The certificate confirms that the organisation’s social sustainability management system is in conformance with the FSSC 24000 Scheme requirements based on the following normative documents:
BSI/PAS 24000:2022 – Social management system requirements (Publicly Available Specification)
FSSC 24000 Additional Requirements (as determined by the FSSC Board of Stakeholders)
The FSSC 24000 certification scheme is owned and governed by the non-profit Foundation FSSC and outlines the requirements for the audit and certification of a Social Sustainability Management System of an organization. More information on the FSSC 24000 Scheme is available on their website.
Responsible Fishing Vessel Standard
STANDARD: The Responsible Fishing Vessel Standard 2.1 achieved SSCI Recognition under Scope CI — Social Compliance: At-Sea Operations in November 2022.
In 2018, Global Seafood Assurances and the UK Sea Fish Industry Authority (Seafish) announced a memorandum of understanding to work together to create the next version of the Responsible Fishing Scheme (RFS), committing to expand its global applicability, which resulted in the creation of the Responsible Fishing Vessel Standard. Now part of the Global Seafood Alliance, GSA took ownership of the standards last year. The first RFVS-certified vessel was announced in Australia in January, and the second set of RFVS-certified vessels was announced in the United Kingdom in April. The standard addresses social responsibility, including working conditions and worker voice, about fishing vessels.
STANDARD: The SIZA Social Standard Version 6 achieved SSCI Recognition under Scopes AI — Social Compliance: Manufacturing & Processing, and BI — Social Compliance: Primary Production in June 2023.
SIZA, the Sustainability Initiative of South Africa, is enabling the South African agricultural sector to become a global leader in sustainable farming, ethical trade, and environmental stewardship. The aim is to encourage continuous improvement in practices over time. SIZA aims to have a cost-effective approach for growers by supplying one standard and one audit, no matter which market a producer supplies. SIZA engages directly with stakeholders throughout the value chain to improve supply chain sustainability, ensuring compliance and reducing risks while at the same time offering support and training with regard to best practices and continuous improvement. Verification occurs via third-party audits. For more information on SIZA, please visit our website: www.siza.co.za
Founded in 2003, the amfori BSCI enables companies to drive sustainability by setting up the human rights due diligence principles that business enterprises strive to implement in their global supply chain.
Representing over 2,400 participants in 46 countries, the amfori BSCI operates in a variety of sectors, the two largest being General Merchandise, and Garment & Textile with a combined annual turnover is evaluated to EUR 1.6 trillion.
The amfori BSCI Code of Conduct set out the values and principles for the implementation of supply chain due diligence, based on the OECD’s six-step framework. The amfori BSCI System Manual outlines the supporting tools and methodology for participants to exercise human rights due diligence and environmental protection set out in the amfori BSCI Code of Conduct.
STANDARD: The GAA Seafood Processing Standard Issue 5.1 is currently being benchmarked under Scope AI — Social Compliance: Manufacturing & Processing.
A division of the Global Aquaculture Alliance (GAA), Best Aquaculture Practices (BAP) is an international certification program based on achievable, science-based and continuously improved performance standards for the entire aquaculture production chain – including processing plants, farms, hatcheries and feed mills. BAP standards cover environmental responsibility, social accountability, food safety and animal welfare. The BAP program is based on independent audits that evaluate compliance with the BAP standards developed by GAA.
Fairness, Integrity, Safety, and Health (FISH) Standard for Crew
STANDARD: FISH Standard for Crew Version 1.0 is currently being benchmarked under Scope CI — Social Compliance: At-Sea Operations.
The Fairness, Integrity, Safety, and Health (FISH) Standard for Crew is a voluntary, third party labour certification program for wild harvest fishing vessels. FISH is designed to provide harvesters a tool to demonstrate to customers and other stakeholders that the seafood harvested comes from responsible sources with respect to crew treatment, compensation, and conditions. It was developed with input from the full seafood supply chain, including large and small harvesters, processors, retailers and restaurant groups, in consultation with labour non-profit organisations, to create a program that is open to vessels and fleets of all sizes around the globe. Read more about the Standard here.
STANDARD: The KFC Flowers and Ornamentals Sustainability Standard Version December 2021 is currently being benchmarked under Scopes AI — Social Compliance: Manufacturing & Processing, and BI — Social Compliance: Primary Production.
Kenya Flower Council (KFC) is the country’s leading Business Membership Association for growers and exporters of cut-flower and ornamentals. KFC members account for approximately 80 percent of Kenya’s floricultural exports.
KFC also owns the Flowers and Ornamentals Sustainability Standards (FOSS), a trusted standard worldwide. It is one of only three internationally benchmarked standards that demonstrate sustainable social, environmental and good agricultural business practice benchmarks set by the EU-based Floriculture Sustainability Initiative (FSI). The standard encourages commitment to ethical practices, innovation and promoting equitable trading practices, thus ensuring that certified producers foster sustainable, responsible and safe production of cut flowers and ornamentals.
The Council is in the forefront promoting Kenya as a reliable source of quality cut flowers and ornamentals and the country’s competitiveness in the global floriculture trade. KFC is actively engaged in all major trade negotiations in existing, new and emerging markets and in amplifying Kenya’s image in the international market as the most trusted source of cut flowers and ornamentals.
Currently, Kenya is the third largest producer of cut-flowers and ornamentals in the world and exports to over 60 destinations globally. Floriculture is the fastest growing export sector in the Kenyan economy, providing direct employment for over 200,000 workers.
KFC engages with key actors locally for a favourable business environment for growers and exporters of cut flowers and ornamentals.
The Rainforest Alliance Sustainable Agriculture Standard, is designed to deliver more value to the more than four million farmers and workers and thousands of businesses that use Rainforest Alliance certification to drive more sustainable agricultural production and responsible supply chains. The Sustainable Agriculture Standard is used in more than 70 countries around the globe. Their program focuses on coffee, cocoa, tea, bananas, and many other important commodity sectors facing urgent environmental and social challenges.
Wine and Agricultural Ethical Trade Association (WIETA)
STANDARD: WIETA Standard Version 4.0 is currently being benchmarked under Scope AI — Social Compliance: Manufacturing & Processing.
The Wine and Agricultural Ethical Trade Association T/A WIETA was the first South African social standard, established in 2002, to establish an appropriate social auditing methodology for fruit and wine suppliers in South Africa. WIETA proudly demonstrates how a multi-stakeholder model can successfully promote a world class ethical trade and human rights programme within the wine value chain. Innovative social dialogue engagements, a rigorous capacity building and training programme for both workers and producers, coupled with a participative multi-pronged approach to auditing and remedial approach to ensure sustained corrective actions.