The consumer-packaged goods (CPG) industry includes fast-moving consumer goods (FMCG), pesticides, insecticides, and pharmaceutical industries. The complexity of this Industry lies in Sales and distribution, especially in countries like India and other developing nations, where CPG products reach customers primarily through general trade, as opposed to developed nations, where goods are distributed through modern trade.
Tracking schemes, discounts, and rebates is a very complex and dynamic business component of the CPG business in India, as there can be a large number of permutations and combinations of schemes and discounts depending on various parameters like Brand, Pack, size, and geography.
The CPG Industry has relatively simpler manufacturing processes since they are mainly formulation-based and easier than other manufacturing industries.
Another critical business process in this industry is tracking the Shelf life and freshness of the products, which can result in significant losses if not tracked efficiently. Additionally, in the Food and Pharmaceutical industries, forward and backward tracking of products is a critical requirement, as it can result in statutory non-compliance related to product safety for consumption. In case of a product recall, traceability is of the utmost importance.
Compared to other CPG Industries, the white goods industry’s manufacturing and assembly operations are complex, while sales and distribution are simpler. The White Goods Industry, which encompasses manufacturers of air conditioners, refrigerators, washing machines and dryers, dishwashers, and LED lights, shares similar industry dynamics to some extent.