Question: Allgoods is a leading consumer packaged goods ( CPG ) business that serves retail markets locally and abroad. Allgoods has a presence in more than
Allgoods is a leading consumer packaged goods CPG business that serves retail markets locally and abroad. Allgoods has a presence in more than countries and offers a product portfolio that spans the grocery store market with wellknown trademark brand names. Although it has a number of manufacturing facilities for producing a wide range of products, it also makes use of contract manufacturing and supply agreements.
Many CPG firms are struggling to align their supply chain strategy with business strategy. A number of typical challenges facing these types of business are:
growth goals and innovation steams leading to more complex product portfolios that require new capabilities
Everchanging customer requirements for example, customization, lead times and fill rates
Financial pressures from cost and capital performance fixed and working
Many challenges have emerged over time for Allgoods as product lines were purchased and sold off, product line portfolios priorities shifted, assets rationalised, new technologies were introduced, and customers were increasingly provided with differentiated services. Allgoods has multiple supply networks rather than a single chain, with each network reflecting different product families, trade channels, and sourcing, manufacturing, and distribution networks. Key business considerations for Allgoods began to materialize. This included brand and technology growth rate, geographic, channel, and customer investment focus, and the capabilities for achieving differentiation in a market. The need to grow and innovate, coupled with financial objectives and relevant good business practices, collectively suggested that strategic thirdparty relationships were becoming crucial.
Most costfocused supply chain improvements have in the past helped to improve Allgoods bottom line example: sourcing lean manufacturing, and contract manufacturing, and thirdparty logistics In the past, the companys supply chain was essentially thought of as little more than a required path from the factory to the retailers warehouse. With this philosophy, Allgoods was able to focus on manufacturing and marketing while retailers made the sale. The next strategic supply chain challenge is to achieve full alignment with the business intent of creating value and enabling growth. Allgoods realised that they need to initiate a programme that would help them achieve full alignment between their business strategy and their supply chain strategy approach. What would be a suitable supply chain strategy for this industry and type of business given the level of supply and demand uncertainty
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