**London**: The Promotion Optimization Institute’s latest report reveals essential strategies for consumer packaged goods firms amidst economic pressures, highlighting the importance of automation, data management, and emerging technologies in enhancing efficiency and collaboration across supply chains.
The Promotion Optimization Institute (POI) has released its tenth annual State of the Industry Report, which highlights key strategies for consumer packaged goods (CPG) companies aiming for efficient growth amidst ongoing economic pressures. According to the report, firms must focus on automating Holistic Enterprise Planning, enhancing revenue growth management, and utilising visibility and analytics to secure success across multiple selling channels.
Pam Brown, Chief Commercial Officer at POI and author of the report, emphasized the necessity for firms to adapt strategically amidst changing market conditions. “POI research demonstrates that companies must adapt and strategically recalibrate organizationally to mitigate economic headwinds, enhance profitability, outpace competition, and navigate global changes to achieve sustainable efficiency and growth,” she stated.
The report draws insights from over 130 leading CPG manufacturers, examining critical areas such as enterprise planning, optimization, and revenue management. Notably, it reveals that 61% of surveyed companies struggle to execute planned promotions effectively. This highlights a need for better joint planning between customers and suppliers to improve collaboration and minimise supply chain disruptions.
The data also points to significant shortcomings in data management, with 40% of respondents identifying issues in data cleansing and harmonisation. Furthermore, a lack of data ownership was noted by 37% of companies as a barrier to optimising revenue growth management. As shifting power dynamics between customers and suppliers create challenges, companies that leverage data effectively stand to forge stronger supplier relationships.
Emerging technologies like Generative AI remain underutilised, with 67% of organisations yet to adopt such solutions. Early adoption of these technologies is deemed essential for companies aiming to lead the market, as they can enhance execution capabilities and drive operational efficiencies.
Additionally, the report indicates that 51% of CPG manufacturers feel their support teams lack the necessary skills to elevate pricing and market strategies. The need for Integrated Business Planning was widely acknowledged, with respondents noting that improved coordination of demand and supply forecasts could add value to their operations.
The report further stresses the importance of digital capabilities, with 61% of participants claiming that establishing a digital practice hinges on acquiring adequate budgets. Thirty-five percent of respondents indicated a need for dedicated digital teams, pointing to the evolving landscape of retail strategies.
The insights gathered from the 2025 POI State of the Industry Report serve as a critical resource for CPG leaders as they navigate the complexities of enterprise planning, respond to structural changes, and enhance their collaborations with suppliers. Access to the full report is now available for interested parties.
Source: Noah Wire Services
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