Consumer Packaged Goods Industry: An Overview
Consumer Packaged Goods industry stands 4th among the sectors that contribute to Indian economy. Consumer Products are produced, distributed, marketed and consumed within a short span of time.
Though this sector includes a wide range of products that includes detergents, toiletries, tooth cleaning products, cosmetics, consumer electronics, soft drinks, diary products, farm products, packaged food products, consumer electronics etc., some analysts group them in to three segments:
Revenue in Indian FMCG industry has been growing @ 21.4% in the last 10 years. Analysts estimate that revenues of CPG sector may reach around US$103 billion from US$ 52.75 billion in 2017-18.
In India, urban areas account for 55% of CPG revenue and rural areas, which are growing faster, contribute 45% of the revenue. More than 65% of people, who stay in rural areas spend approximately 50% of their total expenditure on CPG. Rural FMCG market is projected to reach US$220 billion by 2025.
Number of online buyers is projected to reach 850 million by 2025.
Also, the GOI has recently approved 100% FDI in “Cash & Carry” segment and 51% FDI in multi-brand retail.
Recent trends & Challenges in CPG businesses
Keeping in view of the above factors, brands should build and manage a highly agile supply chain which is e-commerce ready and powered by accurate demand forecasting and inventory planning capabilities.
A CPG company needs a solution that can help it in inventory optimization and assortment optimization taking demand and supply volatility into consideration.
Keeping these challenges and opportunities in perspective, we have designed and developed a solution on SAP ERP – CastaCPG specifically for Pharma manufacturers, which is being used by several organizations in India.
Main features of our solution for Consumer Packaged Goods businesses
An enterprise application for CPG Manufacturing and Distribution should enable organizations to produce and deliver high quality products to its customers quickly and at competitive prices, while following CGMP practices.
Our solution ‘CastaCPG is specifically designed to do this!
Our team of business experts with vast experience in Consumer Packaged Goods Manufacturing & Supply Chain, Discrete Manufacturing, Batch & Continuous Production have identified major requirements and developed this pre-configured solution used by various industries.
Our solution enhances the capabilities of SAP S/4HANA and helps you in managing your sales, production, quality & logistic processes specific to CPG businesses apart from supporting back office functions like accounting and human resources. We constantly update our solution with improved planning & scheduling processes along with latest compliance requirements and release them in the form of service packs.
Cross-Industry Functions & Features on SAP ECC or SAP S/4HANA
Standard processes across functions such as Finance, Sourcing & Procurement, Sales, Supply Chain, Quality Management, Production etc. are pre-configured and available for use readily. All processes are available with local tax compliance and reporting requirements.
For example, processes such as procurement of raw material, assets, services etc. are already configured with various release strategies and Purchase Order layouts with the required tax procedures. Processes supporting Domestic Sales, Exports, Online Sales etc. along with invoice layouts are already pre-configured and available to use. Chart of Accounts that supports local and international reporting requirements are available along with the Legal & Statutory reporting templates.
Ready-made tools are available to migrate your Master data and open items. Analytical reports across various functions are readily available.
You can adapt to these pre-configured processes or customize where required and start using the solution quickly. The Baseline functions included in this solution are listed below.
An add-on solution for Consumer Packaged Goods on SAP ECC or S/4HANA
Apart from the baselines functions, we have included below processes and features that are specific to Consumer Packaged Goods businesses:
R&D / Engineering
Tertiary & Secondary Sales
Other SAP Applications
Add more capability to your CPG Solution on SAP ERP
In addition to the Baseline solution & CPG Add-on, you can implement additional SAP Applications listed below which are customized for CPG Manufacturing & Distribution scenarios.
Industries that can use our Solution