The State of Collaboration Between Consumer Packaged Goods Manufacturers and Retailers

Abstract

This Manufacturing Insights report presents our view on the state of collaboration between consumer products (CP) manufacturers and retailers, starting with an economic review followed by analysis of areas where we see either the highest current level of collaboration or the greatest future potential for collaboration. This report then concludes with a look at the future of collaboration in consumer packaged goods (CPG), along with insights on where companies should focus their collaborative efforts. Simon Ellis, practice director for Supply Chain Strategies, said, "It' s worth understanding that we tend to look at collaboration between CP manufacturers and retailers along two axes: collaboration that drives revenue and collaboration that eliminates cost. Much of the focus has been in the area of cost elimination where particular challenges exist to identify areas of true cost elimination rather than simply shifting costs. But a single-minded focus on cost doesn' t always make sense. Interestingly, collaboration around new technologies, where the initial focus was around cost elimination, have shone new light on revenue-driving opportunities."