LONDON, 4th May 2017 — Consumer products companies need to collaborate with rivals to unlock new sources of profitable growth amid converging market challenges. That is according to an EY report commissioned by The Consumer Goods Forum:To deliver profitable growth in the world of the new consumer – must your old rivals become your best friends? which finds that the final link in the logistics chain is becoming increasingly inefficient and demands a new collaborative approach.
The findings highlight four key areas of impact on logistics operations:
The report details the three key collaboration opportunities that exist for manufacturers:
Matthew Burton, EMEIA Omni-Channel Leader, Supply Chain & Operations, EY, says: “The rise of omni-channel, combined with more onerous regulatory requirements and urbanisation, is forcing companies to radically rethink routes to market. Rather than looking to innovative solutions such as self-driving trucks and robotics to address disruption – which could be years away from mass adoption – collaboration offers the prospect of much faster benefits. By pooling assets and expertise through new relationships with rivals, companies can get ahead of the market and dramatically improve efficiency”.
Ruediger Hagedorn, CGF Senior Manager – End-to-End Value Chain, says: “Some consumer products companies are already driving growth through small-scale collaboration. However, there is more work to be done and consumer products companies need to find the right business model to support collaboration and help drive efficiencies to new levels. We very much value the need for collaboration in key areas of the value chain and it is great to see what can be achieved when organisations work together for the benefit of the industry, consumer and planet”.
The Consumer Goods Forum (the CGF) is a global, parity-based industry network that is driven by its members to encourage the global adoption of practices and standards that serves the consumer goods industry worldwide. It brings together the CEOs and senior management of some 400 retailers, manufacturers, service providers and other stakeholders across 70 countries, and it reflects the diversity of the industry in geography, size, product category and format. Its member companies have combined sales of EUR3.5 trillion and directly employ nearly 10 million people, with a further 90 million related jobs estimated along the value chain. It is governed by its board of directors, which comprises 50 manufacturer and retailer CEOs. For more, please visit: www.theconsumergoodsforum.com.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for or clients and for our communities.
EY refers to the global organization, and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.
Consumer products companies are operating in a brand-new order, a challenging environment of spiraling complexity and unprecedented change. Demand is shifting to rapid-growth markets, costs are rising, consumer behavior and expectations are evolving and stakeholders are becoming more demanding. To succeed, companies now need to be leaner and more agile, with a relentless focus on execution. Our Global Consumer Products Sector enables our worldwide network of more than 17,500 sector-focused assurance, tax, transaction and advisory professionals to share powerful insights and deep sector knowledge with businesses like yours. This intelligence, combined with our technical experience, can assist you in making more informed, strategic choices and help you execute better and faster.
For more information, contact:
Sr Manager, Communications
The Consumer Goods Forum
EY Global Media Relations
+1 201 474 5460