Adopt a Fast and Flexible Procurement Suite to Meet an Evolving Industry
Drive Competitive Advantage through Innovative Sourcing and Strategic Management
Consumer power is at an all-time high, and consumer packaged goods (CPG) organizations need to meet customers’ desire for new delivery models, specialized products that appeal to their changing tastes, and more. While the digital world is giving CPG companies unprecedented levels of access to consumers, the bar for converting awareness into purchase is higher and requires that these companies produce and source more products. In an environment of such radical change, strategic steps are being taken in the industry to make supply chains flexible enough to match these changes without incurring significant new costs for transformation and change management.
With two decades of industry experience, JAGGAER understands the unique challenges facing CPG enterprises and tailors solutions to help maximize the efficiency of their supply chains. Whether it’s procuring direct materials and ingredients; packaging; sourcing indirect materials, transportation, and distribution services; or controlling spend, JAGGAER helps turn complex problems into opportunities to evolve and meet a changing marketplace.
What Sets Us Apart
Facing a host of complexities related to product competitiveness, packaging needs, and large-scale transportation and distribution requirements, companies in the consumer packaged goods industry contend with a number of pressing procurement and supply chain challenges that the solutions in JAGGAER’s CPG Suite are made to address.
JAGGAER’s Advanced Sourcing Optimizer (ASO) addresses strategic sourcing challenges of CPG manufacturers, simplifying the bidding process and driving cost savings for procurement activities.
Companies using ASO can:
- Increase overall spend under management and achieve greater savings opportunities uncovered through spend aggregation and cost driver optimization
- Obtain supply chain innovations by engaging in a collaborative bidding process with suppliers and transportation carriers
- Increase productivity and allow more time for strategy thanks to product-enabled efficiencies
Spend Director allows organizations to influence buying decisions and improve spend management across their entire employee base.
Spend Director allows CPG organizations to:
- Influence buying decisions among its employees and drive contract compliance with guided buying
- Gain visibility into real-time product availability—both with suppliers and local inventory—to streamline purchasing and inventory management across disparate locations
- Access an intuitive shopping environment, with thousands of active supplier integrations available, in a dynamic and responsive interface
Total Supplier Manager (TSM) helps organizations automate and monitor supplier interactions, avoid duplication of efforts, reduce errors, and systematically reduce risk in the supply base.
Features of TSM include:
- Automated supplier registration and management through a centralized portal, with increased visibility into vendor performance metrics
- Ability to ensure current and potential suppliers have the qualifications and resources to meet organizational standards through the Dynamic Qualification feature and risk compliance
- Management of diverse vendor programs down to second tier suppliers by allowing prime suppliers to self-report on their spending
“We chose JAGGAER based on its intuitive handling of large data sets, the flexibility in defining tender variables and the strong analytical engine to assess and visualize different implementation scenarios.”
“Procurement managers are consistently challenged at the highest levels to extend that success to the greater organization in order to achieve wider strategic initiatives through a data-driven, process-oriented approach.”
The Coca-Cola Company
A fast-growing, U.S.-based healthy alternative food company sought JAGGAER’s help in turning their supply chain into a competitive advantage. They wanted their brands to have first-mover advantage when a new health trend arose—whether it be the demand for foods with or without certain ingredients, or a whole new consumer goods product entirely, they knew that regularly being the first to market would position them as a leader in the space. It would also allow them to better drive revenues from these trends, whose windows of opportunity seem to shrink with each new wave.
JAGGAER’s CPG suite of tools empowered the company to streamline its procurement and supplier management, paving the way for a faster turnaround time between identification of a new product to be sold and actually getting it packaged and out the door. This saved considerable costs in the process, but importantly it also put them in a position to react more nimbly to changing consumer tastes.
With a speedy, more efficient bidding process thanks to JAGGER’s ASO solution, they are now able to quickly bring new suppliers on (or procure new items from current suppliers) when the market shifts and a new material is needed in response; TSM assures those new suppliers are (and remain) a good fit for the company. Additionally, managing inventory with Spend Director helps them make sure it is optimally efficient in its buying and transportation activities, and doesn’t over-commit to a product that will be less in demand when consumer preference shifts –that way it’s ready to move to the next hot product when it arrives.
The Solution Suite
The CPG Suite of solutions from JAGGAER allows organizations to create sustainable sourcing initiatives that respond to changing consumer preferences, master complex logistics across their global supply chain, and centralize strategic sourcing practices to better manage spend. The highly-competitive markets that most CPG companies find themselves in necessitate managing costs efficiently to create competitive advantage, and JAGGAER customers like the one above have seen firsthand the benefits of a streamlined and data-driven procurement process.
- 83% of spend under management
- 30% reduction in number of suppliers under management
- 120% return on investment within the first year
- 160%+ reduction in average processing time from bid to supplier shipment
- 95%+ compliant contracts in place
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