As a brand, you want to ensure you can deliver to retailers every time. COVID changed that. Showing up on the shelf became more challenging and more costly. Your business struggled through two-plus years of unimaginable setbacks. And then, once the pandemic threat began to wane, inflation began to soar. Consumers who were once desperately seeking your product are now looking for lower-cost alternatives.

It’s these kinds of setbacks that have taught those of us in the industry that we must stay nimble in the face of inevitable change, and abreast of trends and potential shakeups coming down the pipeline.

What does that mean for you? While the path ahead may seem a bit rocky, here are some ways you can adjust your operations to ensure they’re efficient and profitable as the market continues to evolve.

1. Balance supply chain resilience and optimization
   If today’s climate has asked anything of the CPG industry, it’s to be resilient. While it can be exhausting, it’s a key advantage if you can harness that flexibility. Don’t wait for a shortage; actively seek out alternative ingredient suppliers and source unique ingredients and raw materials, when possible.Ensure not to go to the extent that the cost outweighs the benefit. Ask yourself what is most sustainable. Is aiming for a 93% – 95% fulfillment rate versus 99% – 100% more realistic? Find the right balance for your business, while acknowledging that optimization in today’s landscape may be to drive costs down and look for value-based pricing. Realize that higher prices may be the industry’s new normal with a high probability that there won’t be a return to the old normal.

2. Understand your competition, beyond the shelf
   Get to know the brands competing for the same resources in your sector and stay in contact with your Coman to plan your production inputs appropriately (ingredients, raw materials, line time, etc.). While line time might still be hard to nail down for some categories, the better you can forecast, the fewer interruptions you will have.

3. Prioritize ongoing communication
   There is really no such thing as over-communication in times like these. Better to check in ahead of your needs than to be met with a surprise, right? Talk with your suppliers and manufacturers early and often so you know the status of your ingredients—and you’re able to pivot before a shortage becomes a crisis.Staying in touch with other players and parties in your supply network can also keep you ahead of disruptions. Your distributors and wholesalers may be impacted by labor and transportation issues. The more you know, and the sooner, the better.

4. Collaborate with strategic supply chain partners
   Now is a time to reinvigorate cooperative relationships with strategic supply chain partners, even if you don’t view them as strategic. Having experts alongside to navigate the ever-changing market can facilitate optimized demand forecasting—and better reveal factors that can influence demand—while also helping you understand your customers and how they’re planning their demand.And, consider what infrastructure you have in place to support those conversations. What tools can you put in place to allow for the information you receive to easily translate into actionable data? Keep in mind that what you integrate now will only make you more agile in an uncertain future.

   Instead of asking your ingredient suppliers for cost reductions on a quarterly basis or exceeding the net 30 window you’ve agreed to in order to safeguard that month’s cash flow, start thinking strategically about how to build a foundation for a long-term sustainable relationship. Focus on the total deliverable for each side of the relationship (customer service, flexibility, broader offerings, innovation support, etc.).

5. Create (new) benchmarks
   In this period where inflation promises to remain and the effects of COVID linger, it’s opportune to recalibrate your expectations. Take a broad view of how you operated in the past, where you are now, and what you want to achieve in the future. Then reset your targets accordingly to adjust to our new normal.

At JPG, our mission is to help you grow your brand and reach your business goals. Book your free 30-minute consultation to discuss how we can help. We’ve been in your shoes, and know what it takes to build a brand, so let us give you the support you deserve.

This article was originally posted on Linkedin Here December 15th, 2022