14 Jul 2023

IBP Capabilities CPG Industries Must Look Out For

Like any other industry, the CPG sector, too, benefits immensely from IBP with efficient planning & smarter collaboration acing the market challenges. With demand forecasting & accountability of the organization's actions at the helm – management gets a sure-shot roadmap to better revenue generation.

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Continuing our write-up on the importance of digitized Integrated Business Planning in the CPG industry, we are now going the encore way and spotlighting the capabilities of Integrated Business Planning that a supply chain management must look out for when going through the complete automated planning process. With Data Integration, Advanced Analytics, Visibility & Collaboration at the helm, IBP in the CPG in Supply Chain Management creates a positive disruption shifting momentum in the value chain from planning to production. Sidelining data silos and demand volatility with an astute fact-based decision – a comprehensive business planning tool simplifies the fundamental of the supply chain to maximize the impact through performance and better market presence.

But what if we say that with our intro above, we are just skimming the surface of the role of IBP in CPG? With a deep understanding of the operational data catalyzing early detection of risks & opportunities, an organization benefits immensely in transforming its value chain efforts to the targeted revenue goals. In this blog, we will shed light on the crucial capabilities of IBP, a Consumer Packaged Goods enterprise that must look out for to drive end-to-end efficiency. But first, let’s start with…..

Table of Contents

Understanding the Need for IBP in the CPG Industry

It’s a market driven by consumer demand, and the CPG domain is no stranger. To attune itself to the economic decorum & the potential opportunities – stakeholders must comprehend the critical factor of operational productivity in tandem with agile planning, collaboration amongst departments & resilient risk management policy, a goal that is possible when an IBP platform is incorporated. To be done away with the traditional supply chain practices and spreadsheets that only translate into additional human hours – a business planning tool introduces a seamless functioning framework cornering a disjointed approach towards the company goals.

An integrated business planning platform creates a perfect sync amongst a company's sales, marketing, finance & execution departments, all contributing towards astute final decision-making meant for maximum efficiency & productivity. IBP, in simple terms, bridges the gap between a company's boardroom strategy and ground execution for a foreseeable time ahead. Such analysis of a company's resources to match the required production metric ensures that every deadline is manageable to act upon. With a product's success directly proportional to the behind-the-scenes forethought – integrated business planning enhances traditional S&OP by setting key measurable metrics with forward-looking scenarios with enhanced visibility & risk mitigation framework in place.

Top IBP Capabilities for Successful IBP in the CPG Industry

What capabilities should CPG companies look for when implementing IBP?

With its process synonymous with cohesion, IBP makes the most of the operational data to generate helpful insights enabling businesses to create a single point of action plan so that every faction of the value chain acts towards a common goal. Such a transparent framework allows supply chain stakeholders to be updated about real-time processes and take correctively contributing actions that benefit the end objectives of better revenue generation. Let's look at some crucial pointers highlighting the essential IBP functionalities for CPG companies.

  1. Exhaustive Reporting with Comprehensive Planning Activities One of the topmost IBP features for CPG operation is the platform’s ability to create a single source of data storage with the latest business information concerning all the departments & their course of action. This helps an SCM overlook an enterprise’s production volume, finances, productivity levels, marketing budgets & otherwise expenses.
  2. More Strategic Planning Data gives transparency into past operations and a possible outlook into the future. Such clear standing contributes immensely from a management perspective, helping them draft more strategic & effort-driven directions for the organization's many divisions.
  3. Forecasting & Predicting Demand A company's data, when analyzed properly, holds the perfect roadmap for its future growth and scaling up prospects. With historical data in one place, the IBP platform's machine learning capabilities can help industries forecast customer demand and plan their infrastructure accordingly.
  4. Helps in planning promotional activities In today's world, you must ensure that the word gets out about your product & services. IBP, too, seconds the same notion and helps CPG leadership plan their marketing promotional activities by giving a complete overview of cost, performance, market standing & ongoing rapport with the user's consumption habits.
  5. Adapt as you go. For instances when rough-cut planning is the requirement of the time, a business planning platform with its comprehensive dashboard lets the management know the workforce headcount, the impact the changes might have on the production activity & the effect on the designated revenue plans, among others to make sure that manufacturing process never gets hindered in consumer packaged goods industry.
  6. Better pricing matrix Based on the performance of consumables products, a conglomerate can decide if/any pricing promotion sales activity will benefit the company. IBP helps by reflecting an informative approach to production cost vs. promotional revenue a company might have. It helps identify whether the flash marketing gig is worth it or not.
  7. Collaboration & Accountability Like every industry, CPG sector performance is reflective of how well the collaboration of internal stakeholders & their divisions is & the overall sync that drives the accountability of all actions across the board to deduce an organization's performance. Integrated Business Planning software does that & more to make certain that the efficiency of actions leads to better results overall.

So, in keeping up with the pace of fast planning & even faster execution processes with consumables good industry, IBP, with its virtues of increased visibility, collaboration, and accountability, powers much improved-decision making, which is more fact-driven. For organizations looking to enable themselves with astute automated planning platforms, 3SC's IBP secures its way ahead with its AI/ML-based platform, helping companies make their way up in marketing strategy, improved order rates, better customer metrics & a stronghold on the market share.

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