Innovative CPG companies need effective transportation management tools

The consumer packaged goods industry continues to evolve as companies become innovators within the field. A recent Nielsen report found that 18 brands achieved “breakthrough innovation,” according to Forbes contributor Monica Wang. This means that not only have these brands been able to maintain sales, they have actually shown second-year growth in a time when the future of companies within the CPG industry is far from certain.

These innovative brands, which run the gamut from startups (Bai and SkinnyPop) to traditional household names (Dole and Nestle), have several things in common when it comes to business health. The 18 brands generated $3.7 billion in sales during their first two years of operation, a feat made possible thanks to the tireless research these companies conducted about consumer circumstances. In today’s increasingly digital world, these companies managed to create success with hard work and dedication to maintaining their brand personas.

Strategic approach to transportation is key

How were these companies able to improve their overall position and increase sales, especially during a time of economic uncertainty such as the one currently facing the industry? Part of their success has to do with the fact that they were able to find areas where their ideas filled a market need. They built important relationships and focused their efforts on these aspects that larger manufacturers have traditionally overlooked – resulting in a stronger brand connection.

More than innovation and marketing, however, companies within the CPG vertical have to build effective supply chain management practices so that they can get their goods into those markets. In particular, logistics and transportation management practices need to be effective.

Transportation management solutions can help supply chain managers solve logistics problems.Transportation management solutions can help supply chain managers solve logistics problems.

 

Why are transportation management tools important?

The increasingly expanding global supply chain presents a few key challenges to burgeoning companies, and getting products from point A to point B in the most efficient way possible is one of the most pressing concerns. After all, building and marketing a product doesn’t mean much if customers won’t see it – which means transportation management quickly fills a top spot on the list of challenges that innovative companies have to overcome.

“Rapidly growing economies offer opportunities and challenges to the transportation industries,” explained a Future Market Insights report. “Increased shipment of goods across the globe is a major cause behind channel congestion and increase in competition between market players. Thus, requirement of transportation management system is increasing due to need for safety standards while transportation, storage and handling of goods.”

Increasing freight costs are another reason that transportation management tools are an integral part of the supply chain in today’s digital world. Business2Community contributor Bryan Ball noted that logistics costs, for instance, continue to grow, in particular those associated with parcel shipping. Companies have to have an effective approach to handle this structural shift in freight expenses, and strategies should include efficient, cost-effective logistics and transportation management solutions that bring together insights from carefully collected supply chain data.

For more information about Oracle Transportation Management solutions, check out our webinar below and get in touch with the experts at Inspirage today.

Scott Pulczinski

Scott Pulczinski | Key Contributor

Scott Pulczinski is a Solutions Manager for the Logistics Management practice at Inspirage. Scott has 17 years experience in the transportation and consulting industries. He has been working with OTM for the past 12 years as both a Solution Architect and Project Manager.