Consumer Packaged Goods
The key behaviour that best describes the CPG market is that of replenishment on some regular or frequent basis. CPG Companies are discovering that high product volume sales come at the expense of extreme data complexity. Companies struggle to maintain open lines of communication with Retail Customers and Distributors trying to manage the flow of product.
India's CPG sector is the fourth largest Sector in the Economy and creates employment for more than three million people in downstream activities. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. With the presence of 12.2 per cent of the world population in the villages of India, the Indian rural CPG market is a massive under reached market that CPG companies are looking to farm.
A big challenge for CPG companies has been the national tax structure but the likely advent of GST over the next year or two will create a one time opportunity to change the network and become optimal in supply chain design. ThinkLink can establish and roll-out this optimal footprint.
These changes will mean that larger Distribution Centres will be created and this will require better design, and probably the ability to evaluate automation, and also integrate and deliver projects within budget and to schedule. ThinkLink is the leader in India when it comes to creating turnkey Distribution Centre programs.
Also, most companies have multi-site multi provider Distribution Networks. This can present a problem in ensuring application of standard processes and quality norms. Part of this is linked to standardisation and the other part is linked to formal training in processes, quality norms, logistics management, and material handling, including MHE operations like Forklift Driving. Our subsidiary, ThinkLink Learning, has created initiatives have helped companies in building on-ground programs and learning portals to drive alignment across multiple sites and providers.
Another key change for CPG firms is that the size of manufacturing investments in India is growing. With the volume of these operations much larger than before, there is a need to rethink how Raw Material and Packaging Material will be handled inside the plant, and especially how products will flow from the end of line to storage and shipping. The need for Automation and Integrated Design is likely to be high in this areas as well. ThinkLink, working with its partners, has the ability to deliver such Integrated Programs and we are already one of the leaders in India when it comes to such systems.
Transport operations is another area where a significant spend is sitting. Better planning at a primary, secondary, and tertiary level can release savings of between 5% - 20% for companies. In addition, right sourcing can have benefits of between 10% - 15%. ThinkLink has put together a wide ranging solution set to support these needs, please click here to know more and see how we can support you in driving efficiencies in your transport operations.
If you want to discuss a specific initiative and know more, please reach out to us.