Growth in the household and personal care sector
Increasing organizational agility
In a rapidly changing world, it’s crucial for companies to be more able to respond to change.
Building a lean and flexible supply chain
Companies need to create a low-cost supply chain that is agile enough to respond to changing conditions. In established markets, the focus is primarily on driving out costs and reducing the fixed asset base.
The challenge is to integrate this approach with the fast-changing and complex business environment of RGMs, where the key to success is building the capability to respond rapidly to unpredictable demand and the challenge of high, but volatile, growth rates.
Leading practice among consumer products businesses focuses on:
- Flexibility and adaptability
- Investment in technology to support visibility
- Strong relationships with local providers to enhance companies’ ability to execute reliably
Enabling faster decision-making
The need for improved management information to support business decision-making is a recurring theme in our discussions with consumer products companies. There is a need for more, faster and better-integrated information — for example, in areas such as pricing and forecasting.
“Agility is in the DNA of HPC businesses.”- Anastasia Economos, Co-Global Household and Personal Care Leader, Ernst & Young LLP (US)
Analyzing interconnected data
Technology will start playing a greater role in providing real-time visibility of sales and stocks to support the agility required in the current environment.
Currently, 28% of HPC companies rate themselves as “poor” at analyzing complex and interconnected data. “Big data” utilizes technology to accurately forecast sales and stocks — which could revolutionize the supply chain.
Balancing global control with local entrepreneurialism
Deciding where to localize and where to centralize has become one of the key decisions, but remains a challenge for many companies. In our recent research, just 16% of respondents say their company is very good at balancing global control with local entrepreneurialism and more than a quarter admit that they are poor at it.
Strong, empowered local leadership helps ensure a relevant and rapid response to evolving market needs, while a globally consistent strategic direction gives the ability to draw on capabilities and resources from anywhere in the world.
How we can help
We have a proven record of helping businesses master organizational challenges all over the world — and knowledgeable local teams to provide support in all key markets. We can advise on:
- Reducing complexity and bureaucracy
- Enabling faster decision-making
- Analyzing “big” and interconnected data
- Balancing global control and local entrepreneurialism
- Building a lean and flexible supply chain