The global landscape of Retail and Consumer Packaged Goods (CPG) industry has become extremely complex. Companies in this sector are facing intense challenges from factors such as market saturation and increased globalization, consumerization, complex and expensive supply chain operations and intense pressure on margins. Market saturation and increased globalization with a steady proliferation of brands in established markets are forcing companies to look for new, high potential markets for business growth. Identifying and penetrating these new markets call for smart and intelligent strategies. Business Process Outsourcing (BPO) can prove to be a sustainable and long-term business strategy for Retail and CPG companies to outperform the competition and market conditions.
Today's computerization has taken center stage. Customers with access to multiple channels are increasingly looking for a personalized shopping experience. Retail and CPG companies need to develop better insights about customers and reach out to them with a personalized, unique shopping experience tailored to their needs across multiple channels.
With supply chains going global, there is a need to build collaborative platforms and keep costs low. A top priority for retail and CPG companies is to build agile, collaborative and low-cost supply chains that will enable increased and sustained business growth. The retail and CPG industries have also had to cope with intense pressure on margins. For a business that is beset by thin margins, there are newer challenges that impact profitability such as increased competition and shifting customer loyalties, the need to create effective marketing communication to ensure customer stickiness and rising overheads on processes like F&A, IT, HR and so on. Companies need smart systems and processes for effective campaign management for improved ROI for marketing dollars spent, faster revenue collection and cost reduction.