Executive Summary

Advances in digital technology have changed how the consumer packaged goods (CPG) industry operates. Digital technology has driven changes in production processes, distribution channels and inventory management:

• E-commerce has served as a growth impetus for CPG, enabling a more direct connection between brands and customers and giving brand owners greater control over the supply chain.
• The subscription model blends well with fast-moving consumables.
• Collecting data as consumers review and shop products online has allowed CPG companies to tailor marketing campaigns to drive conversion.
• Machine learning can optimize demand forecasting and enable better inventory management.