Four Trends Shaping the Consumer Product Goods Industry

E-commerce businesses should be on the lookout for trends when developing their strategies. Some of these trends may not necessarily be new—perhaps, only intensifying year after year. Others may be surprises. Companies of all sizes can benefit by thinking about these trends and how they might affect a business, regardless of size.

It’s also important to lean on an e-commerce partner with significant experience weathering storms and accommodating change. Companies involved in the warehousing, packing, and shipping of goods are usually referred to as third-party logistics (3PL) providers, and they help companies large and small with any and all operations related to the movement of your product. You can outsource some or all your operations to a 3PL. 

Let’s have a look at 4 of these consumer products trends:

The Multichannel Consumer

As digital shopping matures, consumer packaged goods (CPG) companies are making changes to interact more strategically with shoppers across any or all their preferred touchpoints. 

This could mean not only creating or enhancing a separate, branded online store, but also leveraging a presence on other e-commerce platforms (i.e, Amazon Marketplace), rolling out mobile shopping apps, or developing subscription services. In doing so, companies have forged a wider range of paths to the consumer. 

Brands and retailers are seeking to regain control of the customer experience. Social media, online word of mouth (i.e., review sites), and other initiatives deliver data that helps companies gain a deeper understanding of the consumer, informing investments in operations, business models (i.e, pricing) and distribution channel management.

The Rise of Niche Products and Private-Label Brands

Though private label products have been in the market for decades, retailers have only recently begun to successfully roll out sophisticated, high-quality products that can compete with entrenched, well-known brands. 

Retailers of all sizes, including startups, are able to do this in part because of access to rich customer data and third-party insights, “that enable them to better understand customer channel preferences, brand affinities, and segmentations,” according to Mastercard Data & Services in a trend article.

Private label and startup brands can be rolled out faster than they had been thanks to e-commerce platforms. Notably, Amazon now offers over 120 private label brands.

Consumers Seek Leadership on Global Matters

In addition to governments and local communities, companies are increasingly being seen by consumers as the ones needing to lead the conversation on global issues. Consumers expect companies to embrace social responsibility, corporate citizenship and sustainability.

This may seem like a tall order to fill for a small e-commerce company, but it’s not impossible. Vendors can keep sustainability in mind when making sourcing decisions. Additionally, this can be used in marketing and messaging when promoting products. Further, even the packing and shipping materials can demonstrate a commitment to sustainability even if the product’s major components do not.  

“Approximately 88 percent of consumers across the United States and the United Kingdom want companies to improve their environmental and social footprint,” according to Deloitte’s 2020 Consumer Products Industry Outlook.

Pressure on the Supply Chain

Supply chain leaders, including logistics companies, continue to feel tremendous pressure. “Increased demand volatility and shorter lead times from retailers have become major concerns, hurting service and inventory levels,” notes consulting firm BCG.

Companies of all sizes are challenged to keep inventories flat while ensuring that there is a constant flow of orders. 

Additionally, constraints on trucking capacity are diminishing the ability to deliver customers’ orders on time and at a reasonable cost. As such, retailers, brands and e-commerce companies are looking to partners that can provide guidance on managing the pressure on logistics.

Utilize Taylored Services

Taylored Services is a fully integrated 3PL provider specializing in wholesale, retail, and direct to consumer unit fulfillment. The company operates 1.5 million square feet of warehouse and distribution space within proximity to the Gateway Ports of Los Angeles / Long Beach and Newark, NJ. 

E-commerce businesses need a partner with significant investments in systems and technology and established, long-term relationships with other interim suppliers along a product’s “shipping journey.” By using Taylored, clients can track their merchandise at every step through and from the warehouse to multiple points of destination.

Services Include:

Warehousing and Distribution

E-Commerce

Supply Chain Management

Value-Added Services and Merchandise Rework

Transportation Management Services

Working with a full-service, integrated logistics provider like Taylored Services not only helps e-commerce businesses of all sizes to service customers more efficiently but also allows such businesses to scale when needed without significant investment.

Author, Jake Wengroff writes about technology and financial services. A former technology reporter for CBS Radio, Jake covers such topics as security, mobility, e-commerce, and IoT.

Resources:

https://www.mastercardservices.com/en/compendium/cpg-trends-2019-decision-makers-should-watch-these-closely

https://www2.deloitte.com/us/en/pages/consumer-business/articles/consumer-products-industry-outlook.html

https://www.bcg.com/en-us/publications/2019/under-pressure-cpg-companies-look-digital.aspx

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/consumer%20packaged%20goods/pdfs/trends%20that%20will%20shape%20the%20consumer%20goods%20industry.ashx

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Address:
800 Federal Boulevard
Carteret, NJ 07008

Size: 300,000 sqft

Technology:
• RF Technology
• Narrow aisle high bay rack system
• Apparel and Accessories
• High value storage area, secured yard
• Transload and Pool consolidation
• Omnichannel distribution

Chino, CA #1 & #2

Address:
14050 Norton Ave,
Chino, CA 91710

Size: 400,000 sqft

Major Equipment:
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• Locus Robotics

Technology:
• Synapse
• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
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• Footwear
• Accessories
• Jewelry
• Bulk Materials

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
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JONATHAN ROSENTHAL - COB

Jonathan has spent a lifetime as an entrepreneur. He started his
first company, NetAir International, in 1983. It was innovative as
the first multi-city on-demand jet charter company and grew into
the largest operation of its kind in the U.S. His second venture was
in launching Saybrook Partners, a merchant bank in 1990 and
later Saybrook Corporate Opportunity Funds in 207. Jonathan
serves in numerous leadership roles, including as founder and
chairman of the LA Harbor Performance Enhancement Center,
WherehouseIT.com, and the Harvard Graduate School Leadership
Institute. He also serves on the Marine Transportation System
National Advisory Committee, Los Angeles Sustainable Freight
Advisory Board, and the University of Southern California Center
for Supply Chain Management board of directors. He earned a B.
A. in Philosophy from California State University, Northridge, B.A.
Sc. in International Law and Legal Studies from Uppsala
University and a J.D., law from Southwestern Law School.

Jonathan is passionate about both expanding and sharing his
knowledge and expertise. He has lectured in transformational
change at the University of Chicago, UCLA, John’s Hopkins, and
Harvard College.

JOE DESAYE - CEO TFMI

Joseph DeSaye has spent over 40 years in logistics. His journey began in 1980 when he co-founded FMI International with his father and brother, specializing in air and ocean forwarding services. Together, they expanded the company to include comprehensive services that grossed over $350 million in sales.

He has a proven track record of success, growth, and leadership within the logistics industry.

THOMAS MCCORMACK - CIO

Thomas has dedicated over 20 years of his career to working in IT for 3PL companies where he has grown to deeply understand the importance of keeping pace with a dynamic and ever-changing marketplace. Prior to joining Taylored in 2014, he led IT or a $2.8 billion window manufacturer and a $1.2 billion electronic media organization. He holds a degree in accelerated mathematics/calculus from LaGuardia Community College and an MBA with a focus on computer software engineering from Fordham University.

Thomas is passionate about coaching and mentoring teams and sharing his experience in cross-functional team leadership. He knows that one of the best ways to grow an organization in today’s society is through the implementation of effective technology that allows them to stay ahead.

MIKE YUSKO - CFO

Mike overseas finance, human resources, and legal at Taylored, as well as directing Taylored’s operating companies. After over 35 years in 3PL, vitamins and supplements, consumer products, engineering, and construction, he is a man of many talents. He has served as CFO at companies ranging in size from $50-$700 million and spent 15 years at PepsiCo as the senior finance leader of a $1.2 billion beverage unit.

Mike holds a B.S. in business administration and accounting from Clarion State College. He is passionate about providing solid leadership and applying “Fortune 50” know how to elevate smaller companies.

JIM DEVEAU - CEO

Jim Deveau is a retailer at heart, with over 20 years of experience leading in the retail industry with companies such as Lord & Taylor, AnnTaylor, Charming Shoppes, and Footstar. After assisting with Footstar’s restructure in 2004, Jim transitioned into the 3PL industry. Over the next ten years, he held various C-suite positions at FMI International, Summit International Logistics, and Toll Global Forwarding before becoming Taylored’s President and CEO and board director.

Jim is passionate about sharing his knowledge. Holding an undergraduate and graduate degree from Northeastern University, together with his extensive experience, he frequently speaks at industry trade shows and conferences and has been recognized as a leader within the industry. He also currently sits on the advisory board of warehouse exchange and was chosen by the US Chamber of Commerce to represent retail trade post 9/11.

Chino, CA #1 & #2

Address:
14050 Norton Ave,
Chino, CA 91710

Size: 400,000 sqft

Major Equipment:
• Automated high speed sortation
• Locus Robotics

Technology:
• Synapse
• Warehouse Management
• Transportation Management
• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Apparel
• Footwear
• Accessories
• Jewelry
• Bulk Materials

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
• Kitting
• VAS

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Technology:
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• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
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• Accessories
• Jewelry
• Sporting Goods
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• Bulk Materials

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
• Kitting
• VAS

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Size: 319,000 sqft

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• Transload and pool consolidation
• Omnichannel distribution

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Address:
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Size: 225,000 sqft

Technology:
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• Warehouse Management
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• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
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Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
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Address:
3355 Dulles Avenue
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Size: 540,000 sqft

Major Equipment:
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Technology:
• FoxPro
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• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
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Processing:
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Address:
2000 East Carson St.
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Size: 294,000 sqft

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• Warehouse Management
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• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
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Processing:
• Retail, DTC
• Full Case Distribution
• Transload
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Technology:
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• Warehouse Management
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• Routing & Compliance
• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Apparel
• Footwear
• Electronics
• Furniture

Processing:
• Wholesale, Retail, DTC
• Full Case Distribution
• Cross Dock
• Transload
• Pick & Pack
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• VAS

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Address:
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Wilmington, CA 90744

Size: 600,000 sqft

Technology:
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• Warehouse Management
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• Document Management
• Custom Reporting
• Web Portal
• Electronic Data Interchange (EDI)

Specialty:
• Electronics
• Furniture
• Bulk Materials
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Processing:
• Transload
• Kitting

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Address:
231 Mill Road,
Edison, NJ 08837

Size: 260,000 sqft

Technology:
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• High value storage area
• Store consolidation
• Omnichannel distribution

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Address:
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Size: 319,000 sqft

Technology:
• RF Technology
• Wire guided high bay rack system
• Apparel, footwear, and accessories
• Omnichannel distribution

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