Consumer Products

Solve for the shelf while managing costs.

Challenges faced by Consumer Products companies would be difficult to overstate. In addition to the long-existing pressures of intense competition, minimum pricing power, and subdued market growth prospects, you are now facing a fundamental change in consumer behavior causing exceptional brand variability. To be competitive, consumer goods companies need to tailor their approach to the markets they serve and ensure that their value chain agility matches each market’s evolving needs.

Robust, financially-driven scenario modeling capabilities in Jonova solutions help you deal with your changing marketplace and basis of competition. Scenario-based planning is critical to understanding the interdependent drivers and related business alternatives. You will boost profitability by optimizing your product portfolio and minimizing time to scale on new products.

Industry Challenges:

  • Increasing costs to develop and market new brands, at the same time most brands have shorter life cycles
  • Discount retailing and private-label products are cutting into branded consumer products pricing
  • Difficulty of differentiation in the face of increasing global competition
  • Rising cost of raw materials contributing to decreasing profit margins
  • Rising oil prices has made delivery and transportation of consumer goods more expensive
  • Big box retailers demand increased levels of efficiency from manufacturers and demand reduced prices
  • SKU proliferation in micro-segmented markets is complicating tradeoffs and decision-making
  • Off-shore manufacturing increases lead-time and variability throughout the network, causing companies to hold higher inventories to protect against uncertainty

Jonova Solutions for the Consumer Products Industry

Jonova can help you increase the profitability of your brands. You can drive down costs while improving productivity to help build a business that is sustainable for the longer term. Jonova software can help you manage risks and make the most of opportunities in emerging markets. Jonova scenario modeling reveals the performance drivers and enables you to react quickly and profitably. Whether a new product or demand shift, you can make it happen despite consumer fragmentation, private label competition, and increasing regulation. Use the Jonova applications below to achieve your business goals:

  • Corporate Strategy and Performance Management
      • Develop consensus strategies and consolidated forecasts to drive performance
      • Reduce information latency and allow faster response to what is happening in the market, closing the loop between planning and execution
      • Implement Working Capital reductions that ensure inventory availability to deliver on market requests
  • Sales and Operations Planning (S&OP)
      • Incorporate financially driven planning into your current S&OP process with explicit connections between planning and execution
      • Examine demand shaping opportunities and promotions as well as lead time for new product introductions
  • Portfolio Optimization and Product Performance Management
      • Recognize which customers generate the most profits from which products
      • Determine trends in advance and plan for what products should be in what stores at specific times
      • Evaluate the profitability of alternative plans for new and seasonal products, assortments and store and shelf placement
  • Sales and Marketing Management
      • Synchronize new product introductions and promotion plans at individual retailers
      • Improve time-to-market for new product launch activities to ensure cross-functional alignment on identified market opportunities
      • Design effective promotion strategies and time your new product launch activities by account to accomplish product success
  • Supply Chain Management
      • Look at the supply chain from the shelf back
      • Use bottom-line focused Capacity Planning paying attention to cash implications to ensure customer needs are met cost effectively
      • Balance working capital and cost-to-serve using scenario planning to support network design
      • Bring products to market on time with strategic sourcing and end-to-end visibility
      • Proactively evaluate supply chain risk to ensure supply continuity
  • Sustainability
    • Execute a carbon footprint analysis
    • Provide analysis to save material and transportation costs through minimizing packaging while still meeting consumer information needs