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Consumer Goods
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"Fully 91% of respondents in Aberdeen's 2005 global trade study
said they felt somewhat or highly pressured to make changes to their global trade
process because expected product cost savings from low-cost country sourcing were
being eroded by unanticipated global supply chain costs. Transportation costs are
the biggest area of budget overruns.."

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Consumer goods manufacturers are caught in squeeze. On one hand,
the ‘Big box’ retailers have increasing power and can dictate higher levels of service
and continually declining price points. On the other hand, consumer goods manufacturers
need to shift manufacturing offshore to remain competitive and must expand their
product portfolios to defend against private label brands.
Challenge
Manufacturers of consumer goods must simultaneously increase customer service to
maintain brand positioning and reduce costs despite adding complexity, time and
variability to their value chain. Product savings can be realized by adopting
low-cost country sourcing strategies, but GTM technology is required to
effectively realize lower total landed costs at the end of the transaction.
Without it, the benefits of global sourcing risk being eroded by higher than
expected transport and customs clearance charges.
Solution
Management Dynamics can help Consumer Goods manufacturers thrive in this high
pressure environment by automating the GTM process:
- Multi-mode Supply Chain Visibility to connect suppliers and all
logistics partners to establish a foundation of process control across
orders, shipments and in-transit inventory
- Trade Agreement management to leverage Preferential Trade Agreements such
as NAFTA, CAFTA and EU
- Trade Planning solutions to model alternative sourcing and distribution strategies
based on total landed costs and applicable regulatory controls
- Trade Compliance solutions to automate the documentation process and establish
reasonable care throughout import and export operations
- Transportation Management solutions to manage international freight and
contain landed cost variances due to logistics over-runs
- Performance Management
solutions to implement Six Sigma initiatives with a comprehensive source of supply chain
data and advanced analytical tools and scorecards
- Trade Finance solutions to reduce the total cost of financing the value
chain especially through Supplier Early Payment Programs
Management Dynamics’ GTM solutions are an important enabler for
consumer goods companies looking to boost shareholder value through global supply
chain management best practices. To find out more, please
submit an inquiry.
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