Before the COVID-19 crisis, major CPG companies were fine-tuning their execution of the old value creation model. They were experimenting with ways to cope with the proliferation of small brands in their categories and focusing on productivity more than ever.
As a typical “black swan” event, the pandemic took the world by complete surprise. Grocery volumes surged 20% with pantry loading and then settled at 5–10%, while restaurants remained closed or tightly restricted. Through this period, large CPG companies mobilized their supply chains and concentrated on top lines, while small players struggled to adapt.
However, the crisis also accelerated consumer demand for value and reliance on digital services. All of this has resulted in a call to action for the industry to respond accordingly.
One of the recommendations to help achieve this is to focus on cash flow and risk exposure. Supply chain disruptions have cash flow implications across the extended supply chain that can’t be underestimated. This eBook will suggest ways that organizations can mitigate damage to their business during this volatile event.