Consumer Goods and Retail
When consumers want it yesterday, be first to make it and first to market.
Today’s consumers in the Consumer Packaged Goods (CPG) & Retail industry are no longer concerned with just product quality and price, they now want to be part of a collaborative product experience. When a brand or retailer fails to deliver on these expectations, consumers will move on. As a result, CPG product lifecycles are getting shorter. Leading CPG and Retail companies are leveraging digital solutions to deliver innovation from concept to consumer with extraordinary speed to delight consumers and drive sustainable business growth.
Food and Beverage
Beauty and Personal Care
Household Products
Packaging Suppliers
General Retailers
Addressing the business challenges of the Consumer Packaged Goods & Retail Industry
Finding profitable growth in the ‘age of experience’ is a big challenge facing CPG and Retail companies. We have identified several CPG and Retail business drivers that can be vital to long-term success and growth.
Challenge
The New Consumer
Consumer behavior and preferences are shifting faster than ever and companies must react more quickly to deliver meaningful innovation on shorter timelines
Exceed consumer expectations
In a competitive marketplace, CPG brand manufacturers and retailers must create differentiated product experiences. The goal is to capture insights from consumers and translate those into brand innovation and retail experiences that will result in higher satisfaction and loyalty. By keeping consumers at the heart of innovation and responding to marketing trends with speed, CPG brand manufacturers and retailers can create the products and merchandising strategies that will consitently win consumers’ hearts and minds.
Approach innovation from a consumer perspective:
Move beyond simply selling products to providing compelling brand experiences.
Drive differentiation by incorporating consumer insights and trends.
Provide the product and company transparency that consumers are seeking.
A faster path to growth in the experience economy
With access to social networks, product reviews, and company information, consumer preferences are changing faster than ever. Only by improving internal collaboration can companies drive the timely innovation that can deliver on what consumers are looking for.
The 3DEXPERIENCE® platform enables CPG brand manufacturers and retailers to go from concept to consumer in one virtual environment. This integrated digital experience removes the internal silos that can slow down innovation while simulating a consumer perspective throughout the design and delivery process.
Challenge
Profit Pressure & Cost Containment
Investor pressure is mounting for companies to drive sustainable growth and increase profits with the same or fewer resources
Increase the product innovation success rate
It is widely known in the CPG industry that the success rate on product innovation hovers around 50%. Why do many initiatives fail to reach their success metrics? Time and cost. Delays to market can jeapordize sales and mismanaging internal data and estimates can cause costs to spiral out of control.
CPG companies need to increse the success rate on innovation, they need to launch more innovation, and they need to reduce the time to market for each initiative. This means managing internal data better, establishing a platform for collaboration, and implementing a model-first strategy to reduce guesswork that can derail and slow down projects.
Connect people, data, and systems to:
Eliminate the internal silos that can create friction and roadblocks for collaboration.
Digitize internal data so that it can be reused and repurposed easily for launching in new/more markets.
Reduce time to market and lower costs by leveraging virtual technologies.
Driving smart product decisions with powerful information
As the pressure from shareholders and competitors rises, it’s more important than ever for companies to get innovation ‘right the first time’. This means launching projects on time and below cost parameters. In order to do this, decision-makers need to be working with the best information.
The 3DEXPERIENCE® platform is a single integrated environment that enables project teams to collaborate more easily and provides powerful simulation models to drive costs out of product recipes, packaging materials, and logistics approaches. When everyone has immediate access to the right data, decisions get made more easily, projects flow faster and success rates increase.
Challenge
Health & Wellness
Expand and modify portfolios to support health and wellness trends and manage regulatory compliance efficiently.
Deliver on consumer demand for ‘healthy’
Consumers are becoming more proactive about their health and this is being reflected in the brands they support, the ingredients they believe in, and the products they purchase. As consumers demand ‘healthy’ and ‘sustainable’ products, governments have reacted by implementing more regulations regarding products in order to protect consumers.
CPG companies are reacting in several ways. Many are evaluating all their current product formulas (and packaging) as well as identifying ways to expand their portfolios so they will be even more on trend. This is causing a mountain of reformulation work as well as increasing the complexity of managing a mountain of regulatory data.
Find the fastest path to formula optimization and compliance:
Use raw materials substitution to manage costs and stay on-trend with consumers
Win more business and increase your ROI with the capacity to mass produce economically and efficiently.
Deliver customized products with accelerated time to market and competitive prices.
Consumer will reward companies who help them live healthier
Health and wellness trends have driven massive impact in the food and beverage, beauty, household product, and product packaging markets. Those companies which can react and keep their portfolios on-trend will be disproportionately rewarded with consumer loyalty.
Solutions from the 3DEXPERIENCE® platform enable teams to understand consumer needs, design and test the formula for efficacy and manufacturability, optimize its cost using raw materials substitutions, ensure that it complies with regulatory requirements, and analyze how it performs in the market.
Challenge
Production Complexity
Demand for more personalized products is leading to an increase in SKUs. Managing production complexity to provide the right product at the right time is critical
Optimize both planning and production
Consumer trends are shifting faster causing CPG brand manufacturers to expand their product lines….on short innovation cycle times. Couple this with large global manufacturing networks and you’re dealing with a great deal of complexity. Resolving production complexity means establishing best practices across complex manufacturing networks where different plants in different geographies may have inconsistent machinery, layouts, workforces, and regulations. Coordinating all this activity by making smart, informed production decisions in real-time is a priority.
Access real-time manufacturing intelligence to:
Leverage data to drive increases in asset utilization.
Capture errors in real-time to reduce waste and lower cost-of-goods sold.
Implement best practices across vast, complex manufacturing networks.
Continuous optimization for planning and production
A smart and flexible manufacturing environment provides CPG companies with the agility to manage demand and production even when complexity is increasing.
The 3DEXPERIENCE® platform provides a paperless environment with real-time access to data. With this knowledge and visibility across large manufacturing networks, companies can implement best practices and catch production errors in real-time so they can be remedied without wasting precious resources. This control leads to efficient and profitable manufacturing networks that can support the increasing pace of product innovation.
Challenge
Value Chain Agility
Consumer are dictating how and when they receive products forcing companies to use agile new models for product delivery
Reinvent the supply chain to accelerate
The success of online product ordering and receiving has raised consumer expectations of how they receive products. As a result, CPG brand manufacturers and retailers need to rethink how they deliver products. There are various models that can be implemented and consumers will choose their own path (i.e. ‘order online, pick up in store’, ‘order online, ship to home’, ‘provide list, stores pick product’).
By utilizing predictive demand and optimizing delivery models, manufacturers and retailers can plan for every scenario in order to have the right amount of product, in the right place, at the right time.
Flexible and efficient supply chains can deliver new value:
Provide enough flexibility in your demand models to prepare for any scenario.
Deliver in the manner the consumer wants to receive their products.
Coordinate your production and delivery in the most efficient manner possible.
Consumers are demanding personalization
A flexible and efficient supply chain can provide CPG manufacturers and retailers with the capability to deliver products when and how the consumer wants to receive them.
The 3DEXPERIENCE® platform is the only solution providing a single environment where manufacturers can work more closely with customers and develop customized solutions at unprecedented speed with maximum efficiency and cost savings. Enhanced multi-site collaboration allows the management and coordination of facility capacity, operations, inventory, and delivery resources in a way that’s profitable and efficient.