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Consumer packaged goods, or CPG, refers to the space within an industry that features goods that consumers use in everyday life. These goods are produced on a large scale and generally have a short lifespan. CPG companies sell their goods to retailers, which in turn sell to consumers.

The latest trends in consumer habits establish shifts in the CPG market. Of course, Southwest Star Inc. follows these trends. Essentially, this will have a substantial impact on CPG shipping and transportation. Here are a few key trends experts estimate to change the industry nowadays beyond:

 

• Multi-channel selling and distribution.
• Rapid digitalization of the CPG industry.
• The shift towards personalized experiences.
• Multi-channel presence and moving to online stores will unload the business of the sector and will let shippers better plan their inventories.

  • Nearshoring is fast becoming a Retail trend, with many stakeholders concentrated across several countries in one geographical zone.
  • Transporting goods from a Distribution Center (DC) to the final point of sale comes with its own logistics constraints.
  • Southwest Star Inc. orchestrates the flow of products, partly or completely, along the entire supply chain until they reach the shelves. Our Flow Management & Enterprise Solutions offer.
Due to the extremely diverse and saturated market, the consumer packaged goods industry constantly struggles with many issues. The most common challenges include tight capacity, strict compliance rules, deadlines, and rising operational costs.

It can become complicated for CPG companies to secure some freight capacity in advance to meet the high demand. The inability to supply the needed products to the retailers on-demand can result in harsh penalties and money losses. The constantly growing market of companies requires shippers to invent and imply new solutions in order to stay in the race. According to the Boston Consulting Group, nearly 80 percent of CPG supply chain executives state transportation as their biggest trouble. That’s why outlining the proper logistics strategy for your CPG supply chain is crucial.

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Executive Vice President,
Consumer Department

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