What are CPGs?
​A type of good that is consumed every day by the average consumer. The goods that comprise this category are ones that need to be replaced frequently, compared to those that are usable for extended periods of time. While CPGs represent a market that will always have consumers, it is highly competitive due to high market saturation and low consumer switching costs.
CPG Industry Overview
Market Specfics
​While CPGs represent a market that will always have consumers, it is highly competitive due to high market saturation and low consumer switching costs. Some major factors of successful companies includes.
Delivery Channels
CPG industry relies heavily on retail delivery channels to place a finished product in the hands of a consumer; it is this dependency and all of its inherent moving parts that finds the CPG industry embracing Lean Six Sigma methodologies.
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CPG industry recognizes that supply-chain management is a core strategy and to compete and survive in this highly competitive market their supply chains must be flexible, better than their competitors, performance driven, and collaborative to create strategic relationships. An efficient supply chain allows companies to react quickly to unexpected consumer demands, which increases customer loyalty.
Inudstry Innovation
​The industry was one of the first adopters and supply chain integrator of the U.P.C. barcode thirty-five years ago. CPG industry companies have shown a history of using innovation to stay relevant and competitive.
Consumer Behavior
​Consumer Behavior has changed due to the recent recession and cost has become one of the most important factors in consumer buying decisions. Less than 20% of consumers surveyed say they will go back to their pre-recessionary spending habits. Increasing costs and decreasing profit margins in the CPG industry has required that companies focus on process improvements and manufacturing efficiency to improve their bottom lines.
Our Industry Report - LSS within the CPG Industry