Contract Packaging

Spring 2014

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• Customers are twice as likely to have access to the supplier's "A Team" • Customers are four times as likely to have first right of refusal to innovation at last bullet point is the kicker; when customers recognize the value suppliers can bring with innovative ideas, they can leverage the supplier's external capabilities to significantly expand their reach, new product success and speed to market. In short, SRM can help customers leverage their market success to gain a competitive advantage. Benchmarking SRM maturity So, how do you get there? Well, the first step is to better understand the compo- nents. State of Flux has defined six areas, or pillars, that drive value (See Fig.1). e firm's annual survey uses these six pillars against which to measure and benchmark the progress of a company or industry sector, and to identify "Leaders" and "Followers" in terms of SRM maturity. In 2013, State of Flux' research indicated the SRM maturity of the Fast Moving Con- sumer Goods / Consumer Packaged Goods (FMCG/CPG) category as a whole. How did this sector fare? e good news: Overall, in terms of SRM maturity, this category leads the "Followers" category in every area. e bad news: It also lags "Leaders" in all categories. e gap is smallest in the area of "Relationship development & culture," and greatest in the area of "Information & tech- nology," where FMCG/CPG supply chains are at nearly the same "maturity" level as followers. In research that included F4SS members, the group lagged a bit behind FMCG/CPG; both are in the same camp relative to Leaders and Followers. In this research, the maturity level for Leaders is based on the top 45 responses; that of Fol- lowers is based on the next 185 responses; FMCG/CPG sector maturity is based on 28 responses. (See Fig.2) What the results mean is that we, as an industry, are not extracting as much value from customer/supplier relationships as we could compared to other industries. Customers who develop their skills and capabilities in this area stand to gain a significant first mover advantage. One of the big challenges we face is the shift in capabilities required to be success- ful at SRM compared to the historically valued capabilities of "procurement." us, for organizations to be successful, skills 16 • C P • M A R C H | A P R I L 2 0 1 4 | e Cost Cutter | continued from page 14 Glue Dots® Brand Adhesives are a preferred alternative to hot glues, liquid glues, and tapes; featuring a cold, instant bond that requires zero dry time. INSTANT Bonding Adhesives Learn how SECONDS can add up at www.gluedots.com/adhesives H a n d h e l d A p p l i c a t i o n B e n c h t o p E q u i p m e n t I n l i n e A u t o m a t i o n G l u e D o t s ® M a t r X ® S t i t c h Glue S quares® Glue Dots Adhesives & Equipment Glue Dots is proud to offer a wide-range of adhesive and application options to fit your project needs. Visit gluedots.com/adhesives or call 888.688.7131 for more information. Custom patterns are available and subject to minimum quantities and tooling charges. Please call Glue Dots International for more information. © 2014 Glue Dots International. www.multipacksolutions.com Multi-Pack Solutions is an industry leader in quality contract packaging services for the consumer products, personal care, pharmaceutical, medical, automotive care, industrial and institutional markets. We focus on the development of people, plans, processes and technologies to give our customer a significant competitive advantage. Our commitment to your company's success makes Multi-Pack Solutions the Preferred Packaging Solutions Provider. Multi-Pack Atlanta Specializes in full-service liquid contract manufacturing Span Packaging Services Expert single-use pesonal care packettes, tube and bottle filling Multi-Pack Milwaukee An industry leader for wet wipes Multi-Pack Chicago Your water-soluble pouch provider Our Divisions www.multipackatlanta.com www.multi-pack.com www.spanps.com www.multipackchicago.com Our Divisions Multi-Pack Solutions is an industry leader in quality contract packaging services for the consumer products, personal care, pharmaceutical, medical, automotive care, industrial and institutional markets. We focus on the development of people, plans, processes and technologies to give our customer a significant competitive advantage. Our commitment to your company's success makes Multi-Pack Solutions the preferred Packaging Solutions Provider. www.multipacksolutions.com Multi-Pack Chicago An industry leader for wet wipes. www.multipacksolutions.com Multi-Pack Milwaukee Your water-soluble pouch provider. www.multipacksolutions.com Span Packaging Services Expert single-use personal care packettes, tube and bottle filling. www.multipacksolutions.com 05 CostCutter_0414.indd 16 3/18/14 1:44 PM

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