Digital Disrupts Consumer Packaged Goods

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.