Despite significant growth in revenue, sectors like the consumer groups industry that operate close to the consumers are required to withstand global competition from companies offering large product portfolios in fragmented markets. The industry is exposed to significant cost pressure due to fierce competition in retail, and above all the purchase power of discounters. Multi-channel distribution strategies applied by retail partners, and the pronounced growth in the online and mail order sector with strong new players, present fresh challenges and are changing the market circumstances. There has been an erosion of brand loyalty at the same time, and customers are demanding discounts and promotions. The quota of promotional products is high and difficult to plan for the manufacturers. These factors, accompanied by the consumer desire for greater sustainability and product quality, necessitate permanent alignment and optimisation of procurement, production and distribution among manufacturers of consumer goods.
Moreover, the food industry is confronted with stricter freshness and health requirements. A modern food chain management system that provides precise knowledge on food, its production and packaging, and that is combined with logistics and effective marketing strategies, is necessary in order to guarantee consistent quality assurance.
Specific framework conditions and special challenges that are characteristic of the consumer goods and food industries:
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