How to Navigate Disruptions in Consumer Goods Supply Chains

Supply chain leaders must address the most pressing disruptions within the volatile landscape or risk falling behind. From geopolitical shifts and tariffs to labor shortages, consumer goods companies are leveraging AI and other tech to build more resilient, agile supply chains that can better meet customer expectations even when disruption hits. Tom Gregorchik, global vice president of CPG industry strategies at Blue Yonder, recently sat down with CGT senior editor Liz Dominguez to discuss how consumer goods companies are navigating today's complex landscape. Not only are CPG executives having to face disruption, but there are also huge shifts in demand and the way consumers are shopping right now, warned Gregorchik. Shoppers are looking for value at the shelf and on the supply side, but with myriad disruptions in the way — such as labor shortages, factory downtime, transportation issues — it has created a perfect storm that requires technology to help navigate the business. Supply chains today need to be agile, especially as many companies are dual sourcing now or looking for potential alternatives due to tariff-driven cost increases. It's more important than ever that companies are able to pre-plan for demand events and "what-if" scenarios to execute against their goals even within the turbulent tariff or geopolitical climate. This means breaking down silos between planning, warehousing, transportation and procurement because when a disruption does happen, it impacts everyone in the supply chain, and various teams end up padding their forecast so they are not the problem. Previously, scenario planning was completed with stale data — and it was a process that required brute force to make it really happen, said Gregorchik. But technology has since evolved, allowing companies to solve end-to-end problems. Modernized platforms allow companies to pull different levers, be it maximizing their margins or improving their carbon footprint.Of course, AI is a big part of that. It enables companies to not only identify the problems in a supply chain, but also understand the severity of the issue. AI can automatically detect these problems, expediting processes, and also work in coordination with internal and external partners.Gregorchik used a potato chip company as an example of an organization he worked with that was able to use AI to connect their production schedule with purchase orders, and their transportation coordinators with suppliers, to really understand and have that true end-to-end control tower visibility.In terms of lessons learned, Gregorchik emphasized that breaking down silos is essential, but so is connecting suppliers, co-packers, logistics service providers, etc., on a real-time network. Planning and executing internally is important, but it's just as important to coordinate outside of your own four walls to really plan and execute to be successful.

How to Navigate Disruptions in Consumer Goods Supply Chains

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