CONSUMER PACKAGED GOODS

Managing Indirect Costs to Mitigate Inflationary Pressures

Due to persistent supply chain issues and rising inflation, the cost of goods and services for the Consumer-Packaged Good (CPG) industry are steadily rising. However, a closer look reveals that the supply and demand curve for many CPGs is leveling out. Consumer purchasing has slowed, limiting the ability for organizations to increase prices to mitigate cost increases. Other measures must be implemented to mitigate inflationary pressures and rising supply chain costs.

Typically, indirect goods and services represent 20% of a CPG organizationā€™s revenue. While direct spend is tightly managed across these businesses, indirect procurement teams often lack the resources, focus, and scale for best-in-class buying, representing millions in lost savings opportunities.  LogicSource focuses only on indirect spend solutions that are designed by procurement experts to deliver both commercial savings and persistent operational value that improves time to market and profitability. 

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