Reports show that the consumer product industry has seen a decline in revenue growth for two years now, and Nathan Eddy writes an article about how a shift to direct-to-consumer initiatives may reverse the trend.
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Direct-to-consumer is a means by which companies can tap into new markets. In order to prepare such a shift, manufacturers will “need to improve their demand management capabilities, their ability to respond to variable demand, and their order management and route-to-market capabilities in a cost structure that does not erode margins.” Companies will also need to centralize customer data in a demand signal repository so that it may best be used in data analytics. Eddy concludes the article with advice from Steve Steutermann of Gartner, who says, “Leaders make conscious trade-offs, with an understanding that it may be appropriate to have benchmarks that are at par with industry averages while, at the same time, having other measures that reflect best-in-class outcomes.” In other words, the best leaders will know the difference between bolstering areas that help the business and areas that merely help pad the numbers. You can read Eddy’s article here: http://www.eweek.com/it-management/innovative-transactions-key-for-supply-chain-leaders-gartner.html/