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To weather these storms, and not only survive, but thrive, successful retailers & CPGs are building in increased agility and enhanced overall financial visibility. The confidence to grasp new opportunities, drive growth, embrace change and overcome challenges derives from a finance function reimagined to become the go-to source of analysis and predictions based on detailed, accurate and trusted data. It is the backbone of all enterprises but must now become increasingly supple to meet new challenges.
This type of rapid growth demands a detailed and strategic playbook built out over 5-7 years. CFOs must see digitizing the enterprise as a strategic differentiator, taking risks, experimenting and stopping investments that are not delivering. By raising everyone’s financial quotient or “FQ,” CFOs can empower others with tools to simplify complexity and make data insight digestible for all. Get in touch today to discover how you could transform your finance function.
Special Considerations: CPGs in the Digital Age
When that’s backed up by historical financials and a solid team, the case is only made stronger. And while young companies may not have a ton of data, you should still come prepared to a pitch with any data you have so far, just to give your potential investors a glimpse of how your plan has performed so far. This will provide proof that you’re being thoughtful about tracking your metrics right from the start. It’s something that high-growth CPG companies must bear in mind, especially in the early stages of exponential growth. High growth rates can put a strain on processes, and if you’re in the CPG world, this will affect your supply chain and distributors as well.
The opportunities afforded by a detailed transformation of the finance function are simply too great to ignore, especially as compliance becomes increasingly difficult to manage on an international scale. Get the adaptability you need to respond to unexpected supply chain disruptions, changing trends and competitor promotions. CCH Tagetik for CPG aligns every link of the supply chain with centralized data, enabling you to extract in-depth insights from customer activities, sales channel efforts, production scheduling — and more. Upended by the pandemic, the retail and CPG industry is confronting a mix of macroeconomic, strategic and operational risks that continues to threaten the performance of their businesses.
The rapid evolution of CPG finance departments: CPG digital trends in finance 2021
Accounts receivable automation can help the industry grow its revenue and safeguard its cash flow. By using a truly integrated planning solution, both finance and operations can connect all types of planning, including supply chain, demand, inventory, supply, production, and sales planning. With plans interconnected, you can instantaneously cpg accounting see the ripple effect of a change, and the impact on production KPIs, margins, and profitability. Close the books, build a resilient supply chain and foster growth with CCH Tagetik for CPG. The CPG industry has managed to survive a challenging time, but there is no sign that the move to digital systems will abate in the future.
- The CPG industry was largely unprepared to deal with the unexpected supply-and-demand shock resulting from the arrival of coronavirus.
- Close the books, build a resilient supply chain and foster growth with CCH Tagetik for CPG.
- A big exit is a popular concept, and we wonder if that’s because it’s the only option new entrepreneurs are familiar with.
- With improved resilience, faster payment of suppliers and streamlined compliance, it’s clear that finance functions have benefitted substantially from the drive to digitise their departments.
- Dihan focuses on identifying, shaping, and delivering large scale enterprise transformation programs.
- From our robust reporting platform to merchant self-service portals, we’ve got your entire financing lifecycle covered for any merchant.
- Founders who can give proof as to why their product or service is needed have a much better shot at raising capital.
Unfortunately, the diverse number of portals in use led to a proliferation of systems, each with individual requirements and procedures. Hundreds of platforms needed to be able to communicate with one another, sometimes across the same company, and most were unable to do so. The recent growth and strength of purchasing platforms have resulted largely from internal ‘No Paper’ mandates. As a consequence, the CPG industry experienced a massive increase in financial portal use. From our robust reporting platform to merchant self-service portals, we’ve got your entire financing lifecycle covered for any merchant. We strive to maximize your financial transparency without you having to do any heavy lifting – and it is our job to execute on that every day.
What can retail and CPG finance teams do to make this journey easier?
Scenario PlanningExplore various strategic-planning processes with the ultimate solution that lets you create and examine multiple scenarios, identify potential outcomes, and make informed decisions to stay ahead. At the time of ordering or delivery, https://www.bookstime.com/ the merchant can easily and immediately receive a payment plan that suits their cash flow needs. Economic slumps often trigger flagging durable goods sales because people are more likely to hold onto their cash in times of economic uncertainty.
When merchants are offered flexible payment options at the exact moment they are ordering products, they are more likely to place the order, increase the order size and reorder in the future. CPG suppliers need a way to embed flexible, competitive financing options within their own ordering systems. Our big takeaway for high-growth CPG management is to develop a patient, thoughtful mindset. The consumerism that’s baked into society will scream at you to spend your money, so the best thing you can do is be discerning with where your money goes, making sure it’s aligned with your strategic plan. Founders who can give proof as to why their product or service is needed have a much better shot at raising capital.