Next-generation global sourcing: Opportunities in the consumer products industry

Published: July 27, 2006

Executive summary

Consumer products companies today face a set of challenges that are different from any they have experienced before. On one hand, market saturation, retailer consolidation, and increasingly specialized consumer preferences have slowed growth and made it more important than ever before to be first to market with customer-relevant products. On the other hand, increasing retailer power, customer price sensitivity, and mounting supply-chain complexity are exacerbating cost pressures and distracting management from its core mission.

Against this backdrop, outsourcing continues to grow at explosive rates, and its potential to improve both cost efficiency and business effectiveness continues to increase. Yet, curiously, the consumer products industry has been slow to adopt it. Here, we examine the global sourcing opportunities for the industry, based on existing capabilities in the global market for services, as well as emerging trends.

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Next-generation global sourcing: Opportunities in the consumer products industry