KPMG: Transformation a primary focus for consumer goods execs

NEW YORK — The recently released 2014 Food, Drink and Consumer Goods Outlook Survey from audit, tax and advisory firm KPMG highlights key initiatives that consumer goods executives are focusing on to transform their businesses. The goals range from updating operational efficiencies and technology to making a push for product innovation, according to survey results. 

 

What are the elements of such a transformation? According to the survey, 52% of executives report that, throughout the remainder of 2014, senior management's efforts will focus on operational efficiencies and technology updates. Forty-seven percent will focus on cost reduction.

 

"Transformation is about making comprehensive changes to a business at a time when incremental shifts are not sufficient," said Patrick Dolan, national line of businessleader for consumer markets at KPMG. "Businesses are challenged to think holistically and to develop operating models that will empower them to respond to current pressures in the marketplace, and that requires the support of leaders and employees with enterprising perspectives. It is refreshing to see many consumer goods companies turning this vision into a reality."

 

 

Making the necessary financial investment is also a key element in transforming a business: 28% of executives report that they plan on increasing spending to improve their facilities or expand them. This was followed by increasing spending on technology (27%); new products and services (27%); sales, marketing and branding (26%) and acquisition of businesses (26%). 

 

KPMG's survey also revealed the top channels in which consumer goods executives will support through investment in technology, which include the company website (63%), social media (54%) and brick-and-mortar stores (29%). 



For the full report, including insights on product innovation, analytics and supply chain transparency, click here.