Before the COVID-19 crisis, major CPG companies were sharpening their execution of the old value creation model, experimenting with ways to own the explosion of small brands in their categories, and pulling the lever of 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 pivot. But the crisis also accelerated consumer demand for value and reliance on digital. All of this constitutes a call to action for the industry.
One of the recommendations to do so 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 organizations can mitigate damages to their business during this volatile event.