The role of planning, specifically connected planning during post-COVID times for CPG companies
Enterprises need near-real-time insight into the state of their business in order to be able to plan strategically across the organisation and be able to execute the plan effectively and track performance metrics. Planning is too often siloed in individual lines of business, but when enterprises are able to break down these silos and implement processes and technologies that support enterprise-wide decision making at all levels, they become resilient, innovative, and disruptive.
According to the IDC, the role of planning is central to the overall success of the CPG company, specifically the idea of a singular, integrated supply planning facility. It is the holistic business process that connects all the various planning functions across the business to enable the alignment of operational and financial performance goals. The key is that these planning processes are not done in isolation; rather, they are done as part of a cohesive, integrated, and enterprise-wide whole.
Clearly, the speed and productivity of innovation increase with a connected planning process. The collaboration mechanisms inherent in a connected planning approach ensure that the proper hurdles are in place for an idea to continue to progress through the various stages and that any "reworking" is done within a stage, not across multiple stages.
Furthermore, the involvement of the various functional business groups ensures that, for example, supply chain–related sourcing, manufacturing, or distribution issues are resolved within each stage rather than across multiple stages or, worst case, just prior to product launch.
Across the CPG industry, business growth is increasingly tied to agility, innovation, and effective collaboration (across functions and within the ecosystem).
Connected planning with integrated advanced analytics unlocks value through:
Integrated planning processes: Aligns plans and reconciliation of gaps with options available to the business.
Optimal commercial investment allocation: Intelligently and efficiently allocate marketing, sales, customer, and trade investments and dynamically manage shifts throughout the year.
Increased trade promotion effectiveness and efficiency: Embed predictive analytics into the planning process, providing granular visibility and near real-time insights into promotion plans and expected ROI.
Improved forecast accuracy: Enable accurate anticipation of demand based on internal and external factors that impact demand.
For further information, including details on the changing consumer trends and how to respond to them, download our full whitepaper.