How to Overcome Supply Chain Challenges in CPG Manufacturing

Perhaps now more than ever, companies are looking for ways to address potential supply chain disruptions.

Recent research from Crisp shows CPG manufacturers are planning to increase their investments in transparency and real-time data sharing to improve supply chain resilience and minimise inventory impacts.

Here, Are Traasdahl, Founder and CEO at Crisp, examines the findings and explains why real-time visibility and collaboration are essential for CPG manufacturers looking to navigate today's supply chain challenges.

Tell us about your recent research – what did you set out to discover?

To uncover key pain points and understand how CPG manufacturers are working to overcome them, Crisp conducted proprietary research with Consumer Goods Technology (CGT) magazine to assess the current state of CPG supply chains and determine where technology investments are headed in the short and long term.

Crisp hypothesised that the inability to access and easily share data is the root cause of many challenges that CPG manufacturers face in building more resilient supply chains. If leveraged effectively, data also presents part of the solution. Particularly in the retail industry, data is frequently slow to move across supply chain partners and is often siloed across different technology platforms. This makes it difficult to access and translate supply chain data into the insights needed to navigate disruptions as they occur.

We set out to test this hypothesis and understand how CPG brands can use data to achieve greater supply chain visibility and collaboration to become more agile. 

What are the top pain points facing CPG manufacturers today?

According to the research, inventory management is a universal pain point for CPG manufacturers. The top three inventory management challenges that surfaced in the research include inaccurate demand forecasting, poor inventory visibility across different locations and channels and a lack of real-time inventory data.

The study revealed that data management, collaboration and the ability to respond to shifts in demand are highly problematic. 73% cited a lack of real-time inventory visibility as a high or medium priority for overcoming supply chain obstacles. And 80% of respondents reported an inability to collaborate across supply chain, sales, marketing and finance teams to solve problems.

This means that while CPG brands recognise that real-time inventory visibility is critical to enhancing their supply chain performance, they face obstacles in accessing the required data. Data is essential for companies to proactively detect supply chain issues and adapt to market changes before shortages or overstock situations occur.

Reducing waste is another key challenge. 65% of CPG manufacturers rank waste reduction as highly important to supply chain performance, but 18% still use manual methods to track this metric and 8% have no formal tracking at all. This research underscores the critical importance of real-time supply chain data and greater collaboration in building more resilient and sustainable supply chains.

What strategies are CPG brands putting in place to overcome these hurdles?

Data is the foundation for more agile supply chains. CPG brands need data at a more granular level, more frequently and, most importantly, in a more usable format to build more agile, fast-moving and in-stock supply chains. Leading CPG brands are improving their agility to navigate an unpredictable market through an increased focus on technology that uncovers, delivers and offers insights into usable data.

Crisp and CGT’s research shows that CPG brands are prioritising investments in real-time data to improve collaboration and minimise inventory disruptions. Amid growing challenges, CPGs are highly motivated to enhance supply chain partner collaboration and invest in technologies to improve agility, with 84% planning to invest in real-time dashboards and 81% in advanced analytics in 2025.

Fostering strong partnerships across the supply chain is also essential for innovation and efficiency - especially in an increasingly complex global market. Our study found that 91% of CPG brands are planning to invest in expanding collaboration with partners in 2025.

What tips would you give to brands looking to enhance supply chain resilience?

To address ongoing supply chain disruptions, CPG brands need to leverage better data to avoid overproduction or out-of-stock situations, stay resilient and keep costs down. Technology that provides end-to-end visibility across supply chains is critical to mitigate risks, increase trust with retail partners and consumers and ensure business continuity.

Accessing the latest supply chain data will empower brands to implement a collaborative commerce approach, where advanced data analysis can improve forecasting, pricing strategies, inventory management and expansion plans. These insights allow brands and retail partners to optimise CPG product sourcing, manufacturing, distribution, marketing and advertising across channels. Brands can improve the accuracy of demand forecasting, maintain stock levels, avoid overstocks and markdowns and direct marketing spend to the locations with the best sales potential.

This is crucial not only to address the potential impact of tariffs, but also for other crises, such as pandemics, extreme weather events, or other disruptions.

Is disruption here to stay in 2025 and beyond? 

Supply chain disruptions are inevitable. From the COVID-19 pandemic and bird flu to tariffs and extreme weather events, supply chain disruptions are here to stay. Effectively leveraging data and supply chain nimbleness is essential for CPG brands that want to increase resiliency.

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