Automakers are putting some of their best-selling vehicles on a diet in a race to meet strict new fuel-efficiency regulations that will kick in by the middle of the next decade.
Analyst Insight: Sustainability has been on consumer packaged goods executives' minds - and part of their strategic plans - for some time now. In the past, many companies have pursued sustainability because they saw it as the right thing to do. At the same time, sustainability also creates positive morale among employees, helps to meet regulations such as those for emissions, and boosts companies' reputations. But only recently has sustainability truly been connected and aligned with financial performance. - Bruce Tompkins, Executive Director, Tompkins Supply Chain Consortium
Yum Brands Inc. said is dropping some suppliers of its KFC restaurants in China as it tries to reassure consumers in that country who were scared off by a chicken safety scare last month.
Analyst Insight: The CPG industry's supply chain performance is middle of the pack: more mature than chemical or pharmaceutical companies and less mature than high-tech and electronics manufacturing companies. Several factors are at work to shift the processes to improve performance. Focus is shifting from inside-out to outside-in, from a vertical horizontal siloed orientation to horizontal processes that can better sense and respond, and from a supply chain focused only on product delivery to a value network focused on serving the customer. - Lora Cecere, Founder of Supply Chain Insights
Analyst Insight: Simply stated, the marketing mission of any business is to profitably create "something" that a customer will buy. The operational objective of the business is to deliver the "something" to the satisfaction of the customer. The financial objective is to charge a fee equivalent to the customer's perceived value while generating a return on the capital investment the business made to create "something."
- Rich Sherman, Supply Chain Discipline Expert at Trissential
Ahold USA plans to launch a vendor collaboration initiative next month that will include sending POS, supply chain and merchandising data via a third-party to some number of its CPG suppliers in order to improve product availability and customer satisfaction.
President Obama didn't draw the connection in his State of the Union address, but his plan to raise the minimum wage might help him with his plan to curb illegal immigration.
A global research study by Oracle has found that brands could lose as much as 20 percent of their annual revenue due to poor customer service, with 95 percent of executives agreeing that delivering a great customer experience is critical to business results.
E-commerce sales in B2C soared to new heights in 2012. According to eMarketer.com, e-commerce sales topped $1tr for the first time. The B2C sales grew from 21.1 percent last year to $1tr. This year, sales are expected to grow from 18.3 percent to $1.2tr worldwide. According to eMarketer, it is estimated that Asia-Pacific has surpassed North America to become the No. 1 market for B2C e-commerce sales.
A recent survey of global online shoppers reports that e-commerce merchants selling abroad are missing out on sales and revenue opportunities because their websites lack local currency pricing capability.