Consumer Goods

Procurement and Supply Chain Consulting

The consumer goods industry is under pressure to deliver more value while navigating rising costs and shifting consumer expectations. Achieving fast, sustainable cost reductions requires a strategic procurement approach that combines tactical negotiation, demand optimization, and long-term category strategies.  

 

Key strategies to deliver value to consumer goods companies

Maximize margins and fuel growth

 

Unlock immediate cost savings to boost margins, reinvest in growth-driving initiatives like marketing, and fund larger transformation projects such as digitization. 

Elevate product quality and advocate sustainability

 

Procurement enhances product quality, boosts customer satisfaction, meets sustainability standards, and delivers superior, longer-lasting products. 

Accelerate lead times and secure supply chains

 

By building a responsive supplier portfolio, companies can deliver products faster, adapt to shifting consumer preferences, and drive sales in an era of shrinking product life cycles. 

 

Delivering results: key performance highlights

Master uncertainty with the KGM Strategy Volatility Manager

In today’s unpredictable market, ensuring product availability and pricing is crucial for a seamless customer experience. KGM Strategy Volatility Manager provides real-time insights and strategies to help you navigate market challenges, protect margins, and meet consumer demand with confidence.

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How we support consumer goods brands?

In today’s fast-evolving consumer goods industry, businesses face mounting pressures from rising costs, supply chain disruptions, and increasing consumer demands for sustainability. To navigate these challenges, companies must rethink their strategies, and procurement—often an overlooked function—can be a key driver of both immediate savings and long-term success.

Rapid value through cost savings

Boost margins and drive growth with strategic cost optimization

One of the most impactful areas for procurement is the management of external costs, which typically represent the largest expense for any organization. By focusing on this critical lever, businesses can generate rapid value through cost savings. These savings, in turn, allow companies to improve margins, reinvest in marketing efforts, and fund larger transformation initiatives, such as digitization.  

Reduce carbon footprint

Enhance Product Quality to Boost Customer Satisfaction and Champion Sustainability

Beyond financial benefits, an efficient procurement strategy also enhances product quality and customer satisfaction, while aligning with sustainability goals by working closely with suppliers to reduce the overall carbon footprint. 

Stay ahead of emerging trends

Accelerate Innovation and Meet Demand with Agile Procurement

Moreover, in a competitive market where speed and innovation are vital, a well-structured procurement strategy ensures timely product delivery, helping brands keep pace with rapidly shifting consumer preferences and shortening product life cycles.  

Close collaboration with suppliers can further spark innovation, enabling companies to stay ahead of emerging trends and meet evolving consumer expectations.

Strengthen your competitive position

Build Supply Chain Resilience to Safeguard Margins and Strengthen Competitive Advantage

Finally, in a world where uncertainty and global risks increasingly threaten supply chains, procurement plays a critical role in building resilience. Companies that proactively manage supply risks and protect availability will not only safeguard their margins but also strengthen their competitive position. 

 

In sum, by optimizing procurement, consumer goods companies can mitigate risks, improve operational efficiency, and unlock new opportunities for growth, innovation, and sustainability.

 

Discover our latest client cases

Reference : How we reduced CO2 emissions by 400 tonnes

Over the span of two years, the project delivered more than 20 million euros in cost savings and further significant CO2 reductions.

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Reference : Nearshoring in the consumer goods industry

We mitigated supply chain risks and slashed costs by implementing a nearshoring strategy that strategically relocated production to trusted regional suppliers.

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Backed by BCG’s global network and advanced tools, we fuse global insights with local expertise to drive tangible, P&L-impacting results that align with your vision and cultureempowering your brand for sustained success in a competitive market. 

 

Get to know our consumer goods experts

Paul Mohr

Managing Director

office@kgmstrategy.com Kontakt

Lukas Rauh

Principal

lukas.rauh@kgmstrategy.com Kontakt

 

Strategic insights and tools

Article

The current volatile situation in the food markets is highlighting the supply concentration and global dependencies in food production.

Client Case

The company was prompted to question its previous supply chains and work with us to identify alternative options.