Building a Resilient Supply Chain for a CPG Company to Navigate the Covid-19 Crisis Using Demand and Supply Mapping Solution

April 9, 2020

The coronavirus outbreak has put many industries in a state of flux, and the consumer packaged goods sector is hardly an exception. Shortage of essential supplies and empty shelves of supermarkets are some of the visible impacts of the global supply chain disruptions caused by the Covid-19 pandemic in the CPG industry. Consumer packaged goods companies that are dependent on global sourcing are severely impacted as major countries such as China and the US have temporarily stopped global exports. If the same situation continues, it could create severe impacts on the global economy and lead to an unforeseen disruption of business operations. As such, consumers packaged companies should take actions to mitigate supply chain disruptions and build a resilient supply chain for the future.

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Business Challenge

The client is a leading player in the Canadian CPG market. Leveraging over 20 years of experience, the client operates over 150+ retail outlets in and around Canada.

As the consumer packaged goods manufacturer solely depended on China for its raw materials, the rapid spread of the covid-19 pandemic compelled the client to bring operations to a complete stop. This subsequently resulted in a palpable short-term impact on the company. Even the client was unable to serve their customers’ demands due to warehouse discrepancies and inventory shortages. In an attempt to cover up for the losses and reassure customer trust, the client was looking to understand the demand impact specific to the business and devise short-term demand-supply synchronization strategy. However, considering the complexities involved owing to the rapid spread of the covid-19 pandemic, this seemed to be an uphill task that required understanding changing customer buying behavior and activating alternative sources of supply. This is when the client sought to collaborate with Infiniti Research to leverage their expertise in offering demand and supply mapping.

By leveraging Infiniti’s demand and supply mapping solution, the client also wanted to:

  • Conduct scenario planning to assess the impact of the covid-19 pandemic on their business operations
  • Determine required supplies and manage demand and supply requirements
  • Identify the company’s direct suppliers and understand their ability to meet supply requirements and potential risks
  • Understand the flexibility of key suppliers to shift production and purchase order fulfilment to other locations
  • Activate secondary supplier relationship to secure additional inventory and capacity
  • Improve visibility to supply chain risks
  • Focus on production scheduling agility

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