Consumer Packaged Goods

Faced with pricing pressures, rising raw material, energy and labor costs, strict health, safety and environment regulations, fierce international and domestic competition, currency fluctuations and changing consumer needs, global Consumer Packaged Goods (CPG) executives are redefining the way their companies grow, operate, invest and manage risk. To survive and excel in this competitive marketplace, CPG firms are focusing on managing their assets through a fully integrated cross-functional portfolio that provides unique insights into cost leadership opportunities, geographic expansion, acceleration of time to market, brand and category consolidation/ divestiture, regulatory compliance, transparent capital management, environmental sustainability and resource optimization.

UMT has over two decades of experience as a trusted adviser to global Fortune 500 CPG companies and their supply chain, finance, R&D, marketing and IT divisions, providing services such as process design and capital, portfolio and project management. As a recognized thought-leader in integrated portfolio management, UMT is uniquely positioned to leverage our industry knowledge and established best practices to be a strategic partner in addressing the challenges of this fast-paced industry.

Keep reading for examples of how we have helped some of our CPG clients.

Streamlining Global Capital and Financial Management

It is critical for supply chain divisions to have the tools and processes to operationalize the growth strategy defined by their CEOs. Financial discipline and accountability are major factors for beating competition by rapidly and efficiently aligning and deploying assets, resources and capital to growth regions, product categories or brands that would generate the highest profit margins, while optimizing cost savings.

Global Central Repository Financial Governance Process
  • Pipeline and portfolio of capital investments and their financial budget, forecast and actuals.
  • Categorization of investments by strategic fit, environmental sustainability, profit-enhancing potential, risk profile, geographic and product/brand impact.
  • Business case development.
  • Standardization of capital management process to improve transparency and drive investment decisions.
  • Capital appropriation request and change request development, submission, tracking and approval.
  • Annual capital budget preparation.
  • Portfolio financial optimization in order to deliver the most strategic value for the organization under financial constraints.
CAPEX Actuals Tracking Financial Business Intelligence
  • Integration with general ledger and third party solutions.
  • CAPEX variance tracking by region, product, portfolio, etc.
  • Reporting on whether investments have met profit enhancing/sustaining target.
  • Monitoring of the end-to-end financial process.
Integrating Project Management into Marketing

A well-executed marketing process is key to increasing sales in the CPG industry. An efficient marketing process needs to follow a typical New Product Development cycle (Concept, Feasibility and Business Case, Development, Validation and Launch). The marketing portfolio needs to be integrated with the R&D, supply chain, manufacturing and sales portfolios. In a function centered on launching the right product at the right time, launch delays could turn a product’s potential profits into losses.

UMT works with Fortune 500 CPG companies to integrate the traditional Portfolio and Project Management cycle into the New Product Development cycle, including multiple rounds of Prioritization. 

Single source of the truth Project Management Tools
  • Accurate data on every product at every phase.
  • Historic data at each phase gate to track estimated efficiency.
  • Capture packaging and target consumers within each project.
  • Schedule and resource management within New Product Development.
  • Tracking projects by multiple categories
  • Resource tracking by department and functions.
Cross-functional Integration Comprehensive reporting tools
  • Tracking of manufacturing and supply chain needs.
  • Cross-functional reporting to provide visibility to downstream activities.
  • Cross-functional schedule visibility via Gantt charts.
  • Pipeline and Portfolio tracking by product, brand, geographic region, and sponsored sport teams.
  • Track key milestones dates and status across multiple projects.
  • Visualizations to optimize prioritization at phase gate.
Optimizing strategic portfolio for IT

The CPG industry has traditionally viewed IT as a support function. With IT spending increasing over the past two decades, managers are focusing on standardizing IT systems across enterprises and cutting costs. As part of these efforts the IT managers are forced to re-evaluate their IT portfolio strategies in order to improve performance, lessen costs, reduce risks and earn greater ROI through effective portfolio management.

UMT has worked with leading CPG companies to redefine and optimize their IT portfolio management processes so they can better align their portfolios to the organization’s strategic goals. UMT also helped with establishing a robust portfolio management governance model and creating sophisticated reporting tools to support portfolio level financial and resource management decisions.

Business Drivers and Portfolio Optimization Portfolio Management Governance
  • Work with executives to identify business drivers that are aligned with the company strategy and business objectives.
  • Quantify the impact of the business drivers.
  • Prioritize business drivers based on their importance to, and impact on, the organization.
  • Establish a governance model under which the portfolio management process will function.
  • Differentiate between various portfolio management cycles (yearly, quarterly, etc.).
Portfolio Financials Portfolio Reporting
  • Establish a portfolio financial tracking process.
  • Track portfolio benefits.
  • Provide visibility of the resource allocation and availability from organizational point of view.
  • Provide sensitivity analysis options (e.g., include/exclude projects in the portfolio to understand the impact on the strategic value of the portfolio).
Optimizing capital and resources for IT

An efficient CPG company needs to have an affordable IT that provides value to each of its functions. With IT budgets shrinking and the number of complex programs increasing, it is paramount to optimize the utilization of technology, human and capital resources. As IT projects require a large array of skills, some of which might be scarce and specialized resource optimization has become a crucial capability to meet strategic objectives and aggressive timelines.

UMT works with CPG companies to optimize their IT portfolio in three dimensions: alignment to corporate strategy, addressing financial constraints, and addressing resource constraints.  

Detailed Demand Management Project Selection
  • Conduct impact assessment for all projects and analyze their strategic alignment with the organization's goals.
  • Identify resource roles and skills required for each project.
  • Select the optimal portfolio based on capital and resource constraints.
  • Analyze multiple scenarios with resource intensive projects starting at different dates.
Resource Management Efficient Reporting
  • Track resource allocation and resource capacity by roles and skills.
  • Forecast resource capacity peaks and troughs.
  • Report on capital and resource demand aggregated by function, technology, role
  • Analyze resource utilization at the individual level for scarce roles.
Research & Development

Accelerating and managing Innovation, business growth through innovation, aligning R&D with business strategy, and improving R&D productivity and throughput are critical success factors in any CPG R&D organization. It has become more challenging to effectively manage many cross-functional R&D initiatives, budget constraints, and human and equipment resources with continuously changing consumer expectations, competitive landscape, increased regulations and skilled resource availabilities. R&D organizations need processes and tools that enable them to proactively assess their portfolio of initiatives/programs/projects, redefine priorities, and make quick and accurate adjustments as required.

UMT has been working with CPG R&D teams to implement methods and tools for improved portfolio management, project management, resource management and cross-functional integration.  

R&D Portfolio Management R&D Resource Management
  • R&D pipeline management.
  • Project identification, assessment and prioritization.
  • Selection of initiatives with balanced benefit and risk.
  • R&D portfolio alignment to corporate strategy.
  • Allocation of R&D resources based on project prioritization.
  • Proactive analysis and identification of resource allocation issues.
  • Scenario analyses.
R&D Project Management Financial Management and Business Intelligence
  • Repeatable project templates.
  • Management of key milestones.
  • Accelerated project timelines while maintaining high level of quality and meeting financial targets.
  • Visual, interactive portfolio and project dashboards.
  • Financial Metrics and Reporting.
  • Interface with key corporate systems for consolidated reporting.