How CPG brands are turning supply chains into growth engines

  • Kinaxis Blog
  • How CPG brands are turning supply chains into growth engines
addtoany linkedin
Young couple shopping in a grocery store

For years, supply chains operated behind the scenes, rarely getting noticed unless something went wrong. The pandemic changed that, thrusting them into the spotlight. Companies with resilient supply chains came out ahead while those operating on outdated, cost-driven models faced massive disruptions.

Now, as the immediate impact of the pandemic fades, many companies risk reverting to the old way of thinking, viewing supply chains as mere cost centers rather than strategic assets. Yet, the forces reshaping supply chains—rising customer expectations, cost pressures, and digital acceleration—are only intensifying.

Meanwhile, top-line growth in the Consumer Packaged Goods (CPG) industry is slowing. According to a 2024 McKinsey report, global consumer goods growth, which once averaged five percent at the turn of the century, has slowed to almost zero in recent years.

intelligence
Takeaway

In this new reality, companies with robust supply chains won’t just deliver products on time—they’ll transform their supply chains into a source of innovation, agility, and competitive growth.

Speedbump Background
Light Cyan

The new CPG supply chain playbook: from efficiency to agility

Leading CPG companies can demonstrate that their supply chain isn’t just about managing costs—it’s a business enabler of profitable growth and strategic decision-making. Here’s how:

Accelerate speed-to-market with early supply chain integration

When supply chain is integrated early in the product planning process, it becomes a critical enabler of speed-to-market.

Imagine a cross-functional team reacting to an emerging trend that requires a new ingredient. Instead of treating supply chain as a downstream handoff, it’s already in the room.

When supply chain teams are included early in the product development process, they provide real time insights into: 
•    Supplier availability
•    Lead times and cost structures
•    Viable and faster alternative sourcing options

Example: A beverage company tracking an emerging flavor trend can quickly assess viable ingredients and suppliers to launch faster—while managing risk and cost. 

intelligence
Takeaway

Supply chains aren’t just about executing the plan—they help shape it.

Speedbump Background
Light Cyan

Whether it’s identifying sourcing options, flagging potential constraints, or aligning production capacity, such proactive involvement enables companies to launch faster, reduce risk, and adapt in real time—all while ensuring product quality and service levels aren’t compromised.  

Build agility with scenario planning and real-time data

Traditional scenario planning was often reactive—responding to disruptions after they occurred. But today, leading CPG companies are evolving this into a forward-looking capability.

When supply chain teams collaborate early cross-functionally, they can anticipate market shifts and make faster, smarter decisions. Supply chain can now model in advance:
•    Demand variability based on external factors (e.g., weather, consumer behavior)
•    Inventory risk associated with different demand scenarios
•    Production and distribution trade-offs for agility and speed

Example: A seasonal beverage brand, whose success depends heavily on the weather, prepares for summer by modeling demand ranges using historical weather data. If a heatwave hits, the company knows exactly how much demand it can fulfill—and where it might fall short. If the season turns cooler, excess inventory is already accounted for in the planning cycle.

intelligence
Takeaway

Proactive approaches position the supply chain as a strategic advisor.

Speedbump Background
Light Cyan

It can guide production planning, promotional timing, and inventory decisions. The result: faster, more informed choices that reduce risk and keep the business ahead of change.

Unlock revenue with predictive AI and dynamic demand planning

The CPG supply chain is not just about reacting to demand shifts—it’s also about anticipating them.

By leveraging predictive AI and real-time data, companies are moving beyond static forecasts to dynamically adjust demand plans based on live market signals.

Improved demand planning does more than boost forecast accuracy and visibility, it also enables:
•    Adjustment of supply levels in real time
•    Identification of constraints and alternative fulfillment options
•    Revenue-driving decisions through smarter demand shaping

Example: A popular product faces limited availability. Rather than simply flagging a shortage, the supply chain team bundles it with a readily available complementary product—maintaining shelf presence and boosting revenue. Alternatively, they may accelerate promotion of an in-stock alternative to avoid missed sales.

intelligence
Takeaway

With real-time insights, supply chain becomes a co-pilot in revenue generation.

Speedbump Background
Light Cyan

It not only reacts to shortfalls but also proactively identifies growth levers.

How to make supply chain a CPG growth engine

To fully unlock growth, leading CPG companies are rethinking their approach to supply chains, shifting from cost containment to strategic enablement:
1.    Elevate supply chain as a core business driver
Despite its rising strategic value, supply chain is still viewed by many CEOs as a back-office function rather than a competitive differentiator. Companies that bridge this perception gap— bringing supply chain into product strategy, commercial planning, and innovation cycles from the start—will outperform those that continue to treat it as an operational necessity.  
2.    Accelerate investment in AI and digital transformation
Real-time visibility, predictive, generative and agentic AI, and intelligent automation are no longer future ambitions—they’re table stakes for agility. Companies that invest in digital transformation respond faster, make smarter trade-offs, and uncover growth opportunities in the noise of supply and demand volatility.
3.    Redefine success metrics for growth
Traditional KPIs such as cost reduction and inventory turnover are no longer fully capturing the value of a growth-focused supply chain. A more comprehensive approach to performance measurement—one that aligns supply chain metrics with broader business objectives, such as speed-to-market, profitability, and revenue impact—can provide deeper insights. Organizations that take this broader view of supply chain performance will be better positioned to adapt and thrive in a rapidly evolving market.

The supply chain imperative for growth

The pandemic was a wake-up call, forcing CPG leaders to recognize supply chain as a strategic asset. Yet as the crisis fades, companies risk losing their hard-won momentum.

This is not just a choice between efficiency and resilience—it’s a choice between stagnation and leadership. Brands that use supply chain as a competitive weapon—aligning it with revenue generation, speed-to-market, and customer experience—will define the industry's future .

The question is: Will your company seize this opportunity, or let the progress slip away?

What’s next?

Want to dive deeper into how leading CPG brands are modernizing their supply chains for the future? Stay tuned for our upcoming CPG supply chain eBook, where we identify insights for CPG supply chain success.