Consumer goods companies need to increase the level of collaboration to be ready for 2020, according to the third Future Value Chain report: Building strategies for the new decade.
The report says the need to act has become more urgent and companies across the industry need to challenge themselves on how prepared they are for 2020.
“Companies should use the Future Value Chain framework to develop a strategy and tactical plan that responds to the external shopper, consumer and societal trends,” it said.
The report is the work of the Consumer Goods Forum, Capgemini, HP and Microsoft. It says: “When we look at the conclusions of the 2016 and 2018 reports and compare them with the 2020 conclusions we see the same common themes in the need to increase collaboration and to drive for more implementation.
“There is, however, a noticeable difference: the urgency to act has significantly increased. Does this mean we are not making progress? no! We are making progress. But we can do an awful lot more and move an awful lot faster. Which comprises the key call to action of this report: Act together, act now, act fast.”
The project went through a process to identify the global strategic objectives on which the industry should focus. These are:
1. Make the business more sustainable
2. Optimise a shared supply chain
3. Engage with technology-enabled consumers
4. Serve the health and wellbeing of consumers
It said: “Matching the four strategic objectives with the current scope and strategic priorities of the Consumer Goods Forum shows good alignment. All four objectives are addressed in global industry initiatives and projects, many of which are outlined in this report. the respective global, regional and local organisation will need to continue to work closely to align their activities, provide company-driven focus on some key priorities and help avoid duplication of efforts.”
It highlights three ways that companies can leverage the Future Value Chain in their own business:
1. Apply the Future Value Chain framework inside your company. the recommended and proven three-step Future Value Chain framework (trends, objectives, tactics) includes a company track that can be used to help businesses develop long-term action plans to respond to the external trends.
2. Implement the relevant tactics and ideas from the Future Value Chain initiative. In addition to industry global, regional and local programs, many initiatives that address the four strategic objectives are already ongoing inside companies. A sampling of these initiatives is presented in this report to offer ideas and inspiration.
3. Challenge yourself to see how robust your 2020 strategy really is. of course, your company already has strategies in place. And of course, you believe that you are addressing the trends in the market that are relevant to you. But is your strategy really robust in the context of the rapid and dramatic changes that will impact the industry over the next 10 years? We recommend you challenge yourself with the list of questions presented near the end of the report.