Kearney Report: Inefficient Supply Chains to Forfeit $800 Billion in Top-Line Growth

by Carolyn Mathas

Kearney just released a supply chain and transformation paper, “More than half of all CPG companies on track to grow below the market by 2027,” analyzing supply chain inefficiencies and providing guidance on how CPG companies can use transformative models to win.

According to the study:

  • 48% of CPGs will capture the majority of growth while the remaining underperforming companies will lose
  • Supply chain leaders must make quick, informed decisions
  • Local and regional portions of the supply chain must be empowered
  • Legacy supply chains must be moved from low-cost to a “best-cost” model

The report provides a model for supply chain transformation—a three-step approach and a rationale for precisely what must change and why. It also analyzes economic supply chain opportunities in terms of:

  • Quantifying expected market size in 5 years
  • Identifying relevant peer sets by fast-moving consumer goods (FMCG) sector and dividing it into quartiles
  • Understanding quartile growth relative to market compound annual growth rate (CAGR)
  • Estimating gain or loss of market share by quartile over the next five years

A copy of the new forward-looking supply chain study, More than half of all CPG companies on track to grow below the market by 2027, is available at this link.

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