4 Examples of Great Consumer Packaged Goods (CPG) Services

Every household and most offices contain plenty of Consumer packaged goods (CPG). The chips in your pantry or the cleaning supplies under your sink are all examples of CPG. Some packaged goods aren’t necessarily CPG. While computers may be packaged with a printer or mouse or screen, they are considered durable goods (DG), because they usually aren’t replaced within a year.

CPG include designs that grab and hold the attention of a consumer on a crowded and competitive physical store shelf. With the increasing adoption of ecommerce for all merchandise, including CPG, that physical shelf is being replaced with the digital online aisle.

By bypassing the trip to a brick and mortar store, CPG ecommerce delivers a more convenient and direct shopping experience for the consumer. That convenience, however, masks the crucial logistical work of fulfilling those online orders and transporting those goods from a vendor’s floor to your door. Within that logistical system, there are ample opportunities for contract manufacturers (CMs) to provide valuable services. We’ll discuss a few of them in this article.

Sourcing

Like all other products, CPG goods must first be made, and contract manufacturers (CMs) can be a great asset to OEMs even before production starts. CMs not only build the product to the OEMs specification by using vendors identified in the bill of material (BOM), but they can also leverage their supplier networks and their buying power to identify acceptable alternative parts, as well as negotiate lower prices and shorter lead times.

Packaging

Often part of the CPG services provided by CMs includes packaging. Not only does packaging protect the merchandise from damage during transit and storage, it is the first and key visual impression a customer will receive when the product arrives. That impression can in turn carry over into how the customer perceives the quality and performance of the product. Repeat business, increased sales through word of mouth, and online reviews can all be impacted.

In physical stores, the packaging also helps CPG products stand out from competing products on a crowded store shelf. The advantage of well-designed and executed CPG packaging is just as relevant on image-heavy ecommerce platforms, where the visual appeal of the product’s packaging can help make that product stand out on a search result page full of images. To ensure the best buying experience and the result of a purchase, it’s critical to make sure there are multiple product shots that show the packaging on each of its sides, and at different zoom lengths and angles. Savvy consumers want to read the details on the product’s labels, especially if they are looking for organic ingredients, have ingredient-related allergies, or are looking for the “Made in the USA”.

Ecommerce Fulfillment and Distribution

The ability of CMs to fulfill and distribute CPG online orders can be a big benefit for OEMs of all sizes. Even more beneficial is the ability of some CMs to ship goods directly into the distribution centers of ecommerce retailers like Amazon. Physical transportation and access is even more powerful when combined with software integrations that allow the CM to pull in orders from any website, and automatically convert them into either work orders for the factory floor, or into transfer requests for their distribution chain.

Inventory Reporting

The web-based inventory reporting platforms utilized by many CMs provide OEMs with real-time visibility into their supply chain. These same systems can also generate inventory reports that can provide a snapshot of their material situation (e.g. shortages, where-used, etc.). This includes: quantities on hand, late deliveries from vendors, what is being reworked by the vendor or at the CM, work in progress (WIP), and much more.

The OEMs access this data via a secure customer web portal, where a simple username and password login grants them immediate and accurate visibility into their supply chain operations at the CM. These inventory reporting systems also give OEMs the information they need to handle abrupt changes in build schedules or product demand spikes, and allows them to closely coordinate with their CM to avoid missing deliveries.

The CM Advantage for CPG

The expertise, focus, and experience of CMs can deliver added value at multiple points for an OEM in the CPG space. End-to-end CPG contract manufacturing solutions featuring services like sourcing, packaging, and fulfillment can put a world of online consumers within reach of their products in a cost-effective manner.

Ecommerce can put your digital store in front of those customers, but CPG services like those provided by RiverStar can put your product into their hands.

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4 Examples of Great Consumer Packaged Goods (CPG) Services
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4 Examples of Great Consumer Packaged Goods (CPG) Services
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End-to-end CPG contract manufacturing solutions featuring services like sourcing, packaging, and fulfillment can put a world of online consumers within reach of their products in a cost-effective manner.
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RiverStar Inc.
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