INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
SURVEY METHODOLOGY
SUMMARY
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
Innovation, Sustainability, and Transparency
Energizing Growth with
Across all sizes and industry segments, innovation has played a critical role in helping CP companies reset and accelerate their growth trajectory over the last 18 months. Most of the surveyed respondents (59%) considered the launch of new brands and product-line extensions as a top priority. In fact, nearly three-quarters of these new products are created to capture additional market share and align their goods to meet changing customer expectations, such as improved sustainability.
HOW HAS YOUR ORGANIZATION’S BRAND AND PRODUCT PORTFOLIO BEEN IMPACTED IN THE LAST 18 MONTHS?
Net decrease, retiring some existing brands and extensions
18%
No change
23%
Net increase, launching new brands and extensions
59%
Q1
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It is also important to note that new product launches are not a one-and-done effort — 73% of organizations polled by Deloitte and SAP believe that their future success depends on their ability to innovate. Such a perspective is compelling CP businesses to partner or outsource packing to third-party vendors and rebrand elements of their products lines or entire brand including their logo, packaging, and color palette.
Furthermore, 51% of companies consider having a sustainable and transparent supply chain as critically important. They are actively pursuing initiatives that help ensure compliance with tightening regulatory measures and meet consumer expectations for information such as product origin, labor fairness and ethics, environmental stewardship, and workplace equity.
HOW WOULD YOU DESCRIBE THE IMPORTANCE OF A SUSTAINABLE AND TRANSPARENT SUPPLY CHAIN?
Q2
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Innovation, Sustainability, and Transparency
Energizing Growth with
Starting to gain interest for our business
Somehwat important for our business
Not important
Critical for our business
15%
30%
4%
51%
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Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Few CP companies that participated in the survey reallocated their trade spend to transition their business model to actively pursue alternative D2C channels during the pandemic. But according to their executives, the reward of making this move was too great to ignore — especially as consumers increasingly expect to have access to frictionless omnichannel and D2C channel experiences.
For 95% of organizations that chose this path, the key business drivers were based on three critical areas for recovery and expansion: customer insight and engagement, revenue growth, and competitive response.
DO YOU FORESEE CHANGES IN YOUR GO-TO-MARKET STRATEGY?
Q3
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Yes
Customer insight and engagement
40%
40%
15%
Revenue growth
Competitive Intelligence
5%
Channel resilience
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer
(D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
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PREVIOUS
Moreover, with access to real-time consumer insight and competitive intelligence, organizations can experiment with promotions, discounts, loyalty card offers, and other marketing programs to determine the most effective way to maintain and increase consumer loyalty. This capability creates an opportunity to access to consumer data, with or without the use of a D2C channel. Using this information can help align business goals with customer needs and, ultimately, better positioning brands for growth.
By getting closer to end consumers and their data, CP companies can foster loyalty and trust, open up new revenue opportunities, and gain a first-mover advantage, which has been a challenge in the past.
The initial adoption and operationalization of D2C did not come without challenges. Some companies had to rethink their processes and implement strategies to leverage nontraditional routes to market and consumer channels while getting ahead of supply chain disruptions and shipping delays.
But there is a positive aspect when working through these obstacles. Respondents that transitioned or started to transition to D2C have realized that this business model is a good long-term strategy, compared to appealing to retail customers to increase the consumer base.
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Strengthening Future Growth with Direct-to-Consumer (D2C) Models
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Confronting Disruption Head-On with Supply Chain Resilience
A central theme of supply chain resilience is underlying all the challenges associated with new product innovation, sustainability, business transparency, and D2C models. For example, more than one-third of interviewed CP companies said that they struggled with fulfillment as they shifted more of their sales volume to D2C channels.
WHAT IS YOUR ORGANIZATION’S BIGGEST CHALLENGE IN ITS D2C STRATEGY?
Q4
Knowledge and skills
6%
No strategy set
11%
Technology and infrastructure
18%
Consumer acquisition and retention
27%
Fulfillment considerations
38%
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To address concerns over supply chain resilience, more than half of respondents indicated a strong desire to advance their demand planning capabilities with intelligent technologies, including artificial intelligence, machine learning, and external analytics. This approach is particularly viable to find and onboard alternate suppliers while improving two common areas of focus for brands: sustainability and mitigation of emerging risks such as raw material shortages, shipping delays, and rising costs.
HOW IMPORTANT ARE EACH OF THE FOLLOWING DEMAND PLANNING AREAS TO YOUR ORGANIZATION OVER THE NEXT 12 MONTHS?
A side benefit of using intelligent technologies in demand planning is blending historical and real-time data to uncover trends predictively and accurately to make more effective decisions. As the rate of disruption accelerates, historical data becomes less and less meaningful, forcing planning teams to make decisions based on real time data. However, when their planning tactics are more dynamic, organizations can respond to changes in consumer preferences and behaviors more effectively and in a shorter period of time.
All these improvements in demand planning enable CP businesses to strengthen the resilience of their supply chain. Whether facing disruptions in their supply network, global or regional shipping lanes, or third-party packing services, organizations can be more agile in maintaining a fast flow of the right products. From production to fulfillment, last-mile delivery, and return management, they are better positioned to keep up with the demands of a D2C model.
Q5
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Confronting Disruption Head-On with Supply Chain Resilience
Less important
Short-term demand planning
Long-term demand planning
Dynamic scenario planning
Intelligenct technologies
Same
More important
8%
6%
9%
9%
27%
42%
40%
42%
65%
53%
51%
49%
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer
(D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
NEXT
PREVIOUS
Summary
The CP industry continues to be disrupted by multiple forces that have influenced the marketplace over the last two years. Economic instability, labor shortages, and soaring demand are wreaking havoc on supply chains. Government regulations and consumers are increasingly their expectations for brands that demonstrate sustainability meaningfully and operate as transparently as much as possible is growing. But more urgent is the rising expectation for growing demand for omnichannel retail, which continues to pressure CP companies to shift their channel strategies to direct selling and increases the need to drive customer engagement and loyalty.
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INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
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INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY
INTRODUCTION
Download Report (PDF)
Q2: Additional Safety Measures
Q3: Reopening Workspaces
Q8: Shifts in Consumer Demand
Q9: Balancing Supply & Demand
Q4: Changes in Go-To-Market
Q5: Consumer Interaction Changes
Q6: E-commerce Acceleration
Q7: Trade Spend Changes
Q10:Top Supplier Relationships
Q11: Raw/Packaging Materials
Q12: Visibility to At-Risk Suppliers
Q13: Alternate Sourcing
Energizing Growth with Innovation, Sustainability, and Transparency
Strengthening Future Growth with Direct-to-Consumer (D2C) Models
Confronting Disruption Head-On with Supply Chain Resilience
SURVEY METHODOLOGY
SUMMARY