Consumer Packaged Goods

From PilgrimSoftware.com

Industries
Consumer Packaged Goods
By
Aug 28, 2008, 17:00

Consumer Packaged Goods (CPG) manufacturers face a lot of pressures: fickle consumers, powerful retailers, globalization, and more. The CPG manufacturing industry is large and thriving; however, margins are slim and competition is furious. There are hundreds of product categories, and to compete, firms must constantly innovate.

From convenience stores, to big box specialty stores, to warehouse clubs, the big have gotten bigger, while smaller retailers—from mid-size regional chains to the mom and pops—have been on a slide. Today’s typical CPG manufacturers are seeing a greater concentration of demand among their top few customers. Increased consolidation means fewer decision makers with more power. Each controls a greater volume and market coverage. More importantly, a “no-thank-you” from one of the major retailers eliminates the manufacturer from a large segment of the business, with decreasing options to make up the lost opportunity and volume. The effects of having one of the top five go away could be devastating.

Retailers continue to push business practices that cut costs and increase product availability.

2007 was the busiest year for recalls, especially for CPG products. Recalls have increased consumer and industry awareness about product safety. However mandatory or voluntary recalls are reactive and are not the answer. New steps for safety, such as the Toy Safety and Certification Program, are focusing organizations on design hazard risk management, process control audits, validating process compliance upstream and more production sample testing. With impending new federal mandates for testing and certification, visibility is needed across the entire supply chain from material – manufacturer – distributor – retailer to the consumer. With increased imports for consumer products from low-cost regions, more focus will shift to lower in the chain (sub-tiers) with the same expectations and standards as suppliers and manufacturers today.

In all cases, CPG manufacturers must compete on many fronts and are being forced to refine their operations to remain competitive and profitable in a volatile market. A major competitive tool for them is having internal operations based upon strong systems. Reducing costs and improving customer service demands quality and operational excellence. And in today’s world, that means having in place systems that increase abilities, not hamper them.

Pilgrim’s solution provides bottom-line results enabling manufacturers to sustain efficient operations in the areas of:
• Product Quality and Safety
• Compliance
• Enhanced Productivity
• Cost Reduction

1. Product Quality and Safety Challenges
Manufacturer’s and retailers are under more pressure than ever to implement processes that guarantee component and product safety. Maintaining high product quality standards through efficient processes enables organizations to ensure product safety and quality and reduce risk.

Enterprise-wide quality management is critical to the production of safe, quality products. Pilgrim’s solution allows manufacturers to streamline production-related processes. Product quality and safety can be ensured with simplified audits and efficient complaint handling. Proper employee training, SOP enforcement, document management, and the quick identification of nonconformances and execution of corrective and preventative actions assists manufacturers in managing their complex production processes. Manufacturers can manage quality and rate suppliers with comprehensive supplier focus software, further aiding them by maintaining safe, efficient production processes. The end result is reduced risk of product recalls and safety issues and increased consumer satisfaction.

2. Compliance Challenges
In an attempt to remain competitive, manufacturers are outsourcing production processes and creating global supply chains. Global compliance standards affect every aspect of the production process from new product creation, to transportation, to retailers. Noncompliant manufacturers face reduced production, potential fines, and even organizational collapse.

Pilgrim’s solution facilitates compliance with industry, global, and organizational regulations. Automated document management and storage, straightforward audit scheduling and reporting abilities, and improved change management assists manufacturers with compliance. Supply chain collaboration and visibility is simplified with Pilgrim’s integrated, web-based solution. Enhanced traceability, visibility, and production performance merge and reduce the risk of noncompliance.

3. Productivity and Time-to-Market Challenges
Success depends on the manufacturer’s ability to efficiently produce and improve existing products, introduce new products to the market, and anticipate consumer trends. Untrained employees and poor equipment management decrease productivity and reduce profits. Nonconformance to SOPs across an organization, and partitioned departments and employees, add to productivity difficulties.

Pilgrim’s integrated solution initiates collaboration between departments and individual employees. Global barriers are greatly reduced with the solution’s multiple language capabilities, universal date/time function, and other culture-sensitive options. The solution monitors employee training and certification records, enables scheduled equipment calibration, and documents SOP changes along with employee acknowledgement. The end result is educated employees who can more effectively perform their jobs, efficient equipment, enterprise-wide process conformance, and collaboration.

4. Cost Reductions Challenges
Manufacturers maximize profits by minimizing production costs while still maintaining product quality. Production and management costs can be reduced with the use of an automated compliance and quality management system.

Pilgrim’s solution is user-friendly and flexible. The automation of critical business processes provides centralized storage, increased searchability, consolidated reporting, and global visibility. Employees can spend less time documenting and analyzing data. Trending reports provide accurate assessments and contribute to enhanced decision-making. Employees can spend more of their time making informed decisions and developing economical product and process improvements.

Smart Results...

Pilgrim Software provides valuable Professional Services to help ensure that your compliance program is a complete success. Pilgrim's expert staff of consultants provides everything from project management to system customization to validation, and helps you minimize your risk and maximize your return on investment.

The Integrated Compliance Platform

Pilgrim Software provides an enterprise–wide solution for managing corrective and preventive actions, complaint handling, change control management, internal and external audits, document control, SOP enforcement, engineering collaboration, employee certification and training, equipment/calibration, supplier quality management, advanced quality planning and risk management. This powerful solution enables you to manage quality and compliance across your entire business, helping you meet regulatory requirements, increase efficiency and reduce costs.