INTRODUCTION
In today’s dynamic and interconnected world, supply chain resilience is crucial for the success of any global consumer packaged goods (CPG) company. Disruptions, whether due to natural disasters, geopolitical tensions, or unexpected market shifts, can significantly impact operations, leading to delays, increased costs, and customer dissatisfaction. Therefore, it is imperative for CPG companies to proactively assess and enhance the resilience of their supply chains to mitigate risks and maintain business continuity.
IMPACT OF COVID-19 ON THE SUPPLY CHAIN INDUSTRY
The COVID-19 pandemic brought various challenges to the global supply chain industry, transforming business interactions and daily operations. Companies are still grappling with the aftermath of the pandemic and its effects on supply chain management. From manufacturing to logistics, businesses across the supply chain spectrum faced unprecedented challenges navigating lockdowns, border closures, lack of raw materials, and fluctuating consumer demands. According to a study conducted by the Institute for Supply Chain Management, almost 75% of Canadian and US companies reported various forms of supply chain disruptions due to pandemic-related shipping and transportation restrictions. The COVID-19 outbreak did not break supply chains but rather exposed existing vulnerabilities.
As a 4PL provider dedicated to helping clients achieve business goals, Cedric Millar Integrated Solutions is committed to helping companies adapt and implement innovative supply chain solutions in a post-COVID world.
COVID-19’S IMPACT ON A GLOBAL CONSUMER PACKAGED GOODS COMPANY’S SUPPLY CHAIN
During the peak of the pandemic, a global CPG company faced challenges related to increased costs and demand for manufacturing and transport. The company sought support from Cedric Millar’s Strategic Account Management team. As part of our 4PL supply chain solutions, we successfully identified opportunities to resolve their business pain points resulting from the pandemic and, more importantly, helped steer them into action. Our team analyzed opportunities and recommended opening a warehouse in Calgary to support service in Western Canada, addressing rising costs and increasing their on-time delivery of goods while reducing transport fines by over 30%.
Regarding supply chain technology, Cedric Millar’s single-point transportation management system provides ongoing business support to streamline the company’s invoicing process with faster billing cycles. Powered by Cedric Millar, their team now runs daily shipments through our Lighthouse TMS, helping them maximize freight management through technology-enabled solutions. Additionally, our team forecasts total cost estimates per period, enabling the company to budget accordingly and assisting them in sales forecasting through our Quality Pay Program.
The company also faced difficulty finding a reliable and economical solution for ocean services during the pandemic. Since their products required temperature control from Thailand to Vancouver, the Cedric Millar team assisted in finding a provider at a cheaper rate to support the movement of the company’s containers across the ocean.
In 2023, Cedric Millar reduced the company’s transportation non-compliance fees by 33% quarter over quarter. Our team uncovered more savings than initially projected, unlocking additional Continuous Improvement initiatives to support ongoing business that might otherwise have been lost due to the COVID-19 pandemic’s effects.
Cedric Millar utilizes the best combination of people, technology, business intelligence, and processes to meet any supply chain requirement and can easily pivot to fulfill changing needs, especially during uncertain times or crises such as a pandemic. It is crucial for companies to heed the lessons of COVID-19 and optimize their supply chain with a comprehensive network solution to face future crises with confidence. This will position your company as a leader during disruptions, knowing you have a 4PL supplier ready to offer a steady hand through uncharted territory.
CONCLUSION
In an increasingly uncertain and volatile business environment, supply chain resilience is paramount for the success of global CPG companies. By proactively assessing risks, diversifying suppliers, leveraging technology, fostering collaboration, and integrating sustainability, CPG companies can enhance the resilience of their supply chains and ensure long-term business sustainability and success.
