Keeping Pace With Rapid Change in CPG & Retail

Key concerns for companies in the retail and consumer goods sectors include price deflation versus rising costs, M&A expansion and consolidation, supply chain management and inventory control, sales growth, managing local markets, sourcing overseas and Corporate Social Responsibility, among many others.

Retail and CPG organizations worldwide use our data warehouse automation and master data management solutions to manage and interpret data into meaningful business information to deliver solutions for these challenges.

Managing Cost & Increasing Growth

Several CPG customers have used Magnitude-based data warehouse automation and master data management solutions to ensure that they, while addressing the many industry challenges they have, benefit from cost efficiencies and thus free up funding for the investment in future growth.

The resulting benefits from these solutions in the area of managing cost and increasing growth include:

Managing Cost

  • Effective use of Operating working capital will free funds for growing capital investment
  • Working Capital can provide additional funds by effectively managing inventory finished goods, closing time on outstanding receivables whilst extending payables
  • Greater transparency and control across all business functions will identify new opportunities
    • Trade and cost pricing improves net revenue
    • Energy management
    • Investment return on marketing, brand image

Increasing Growth

  • Top line growth through innovation and brand strength
  • Net revenue growth
    • Control of cost of goods in particular energy and understanding the detailed composition of products
    • Operating costs contribution made by sales, general administration  trade promotion, marketing
  • Balancing brand investment with sales, measuring the effectiveness of each and then being able to link this to commercial planning.
  • Sales optimization and customer service

Supply Chain Efficiency

In recent years, the CPG/Retail supply chain has changed shape significantly. Retailers and global players have reduced the number of direct suppliers, while at the same time, national and international consolidation has occurred across the industry.

Companies have to focus on improving the efficiency and effectiveness of their supply chains to generate a competitive advantage. By using technology to increase the integration between customers and suppliers, inflexible supply chains can be changed into adaptive supply networks. Magnitude-based data warehouse automation and master data management solutions have provided:

  • Improved coordination in supply chain activities, simplifying and standardizing global information to enable to rapid identification of cost-saving opportunities
  • Visibility of global information on raw materials and suppliers, for reduced costs and improved collaboration with vendors
  • Consistent, definitive body of product management information, creating opportunities for procurement and operational cost savings

Trade Promotion Effectiveness

By using Magnitude’s data warehouse automation and master data management software an organization can track promotion investment and associated uplift by category, brand, product, channel, organization and customer – which means that decisions are insightful and greater return by product and market.

Magnitude customers have seen:

  • Reduction in cost of sales due to maximising return on total trade promotion spend
  • Better brand management with insight into the marketing mix
  • Visibility and control with deeper analysis of funds, customers and promotions
  • Ability to balance brand investment with sales, measuring the effectiveness of each and then being able to link this to commercial planning

Customer Analysis

In order to make the right decisions about investment, customer relationships and product development it is essential to gain up to date insight in buying behaviors and patterns. The only effective way to do this is by using best in class software from the Magnitude suite. Our data warehouse automation and master data management solution give accurate, in-depth information enabling our customers to:

  • Improve their own customer relationships with more effective sales processes
  • Achieve top line growth through innovation and brand strength
  • Optimize sales and improve customer service
  • Plan and react more quickly, remain competitive and protect their market share – at a local and global level
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“The Magnitude-based (Kalido) GPC project has allowed us to manage global products centrally, giving fast access to vital data for local operating units, and ensuring maximum efficiency in R&D expenditure and other areas of product portfolio management.”

Head of Global Product Management and Supply Chain for Lubricants
Shell

“Magnitude (Kalido) gives us a total picture of our business with major international customers, and has expanded our capability to view the historic and projected performance of our
global brands across financial and non-financial measures.”

Head of Information Applications and Architecture Group
Unilever

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