Every CPG brand has to start somewhere.
As Alex French, the CEO of Bizzy Coffee, told us, “My advice would be to start in your own backyard because you have more attempts at success.”
And this is exactly how some of the biggest CPG brands got their start.
- In 2003, LÄRABAR was only in a few Colorado stores, but by 2008 LÄRABAR was purchased by Gen Mills for an estimated $55 million.
- In 2007, Chobani sold its first cases of yogurt to a local grocery in Long Island. Today, Chobani is worth billions and found in the refrigerated section of nearly every grocer.
- In 2018, Olipop was stocked in 40 grocery stores in Northern California. Fast-forward 6 years later, Olipop is in over 30,000 stores nationwide.
It’s clear that starting in your own backyard is a great way to build a solid foundation and tell a good data story to win larger counts, but to really grow and become the next big thing, CPG brands need to expand into new geographic regions and big-box retailers. While this is an exciting transition, it also comes with its own set of challenges, and if these challenges aren’t solved with scalable solutions, it can create a domino effect of operational inefficiencies and disasters that can really hurt your business down the line.
One of the biggest (and easily solved) operational inefficiencies we see rapidly growing CPG brands face is handling and processing an increasing volume of orders.
Most scaling CPG brands will solve this increase in POs with temporary, quick-fix solutions like:
- Interns
- Off-shore data entry teams
- Reallocating employees time to doing manual data entry instead of having them focus on what they were hired for like sales and nurturing customer relationships
However, all of these solutions have one big thing in common: they’re manual, time-intensive, and prone to human error, and these solutions won’t scale with you, especially when you win that big Whole Foods account.
Order automation is one of the best solutions on the market for handling a growing number of Pos. Plus, embracing innovative technology and order automation solutions before you get that big Whole Foods or Target PO will set you up for success.
If you’re uncertain if your brand is ready for order automation, ask yourself these 5 yes-or-no questions. If you’re having trouble answering any of these questions, it’s likely a sign that you need to audit your business operations and consider investing in an order automation infrastructure like Pantry!
Here are the 5 questions that every CPG operator should be asking themselves:
Are we processing orders fast enough?
The benchmark for processing times vary based on your industry, but overall, the faster you can process orders, the better. According to Retail Dive, 64% of retailers deliver an entire order within one week but the average fulfillment time for the top 10 major retailers is just 1.7 days.
Is our team overwhelmed by the volume of orders?
If you’re not fulfilling orders accurately and on time, it’s probably a sign that your team is overwhelmed and/or you’re having team members focus on manual data entry instead of doing their actual job. Order automation solutions like Pantry can help your team process orders without needing to scale headcount. Non-alcoholic brand Töst is sold in over 40 states and major retailers like Whole Foods and uses Pantry to manage orders without scaling headcount, Töst CEO Brooks Addington says, “Pantry has played a major role in helping us navigate the difficult landscape of ordering and logistics. Using Pantry’s software has allowed us to do more with the same headcount as we scale.”
Are we closing the books accurately and efficiently?
Manual invoicing creates bottlenecks when it’s time for the financial department to close the books, especially since manual invoices are error-prone and often delayed. However, automated invoice processing, also known as order automation, unlocks new levels of operational efficiency. A benchmark study conducted by Ventana Research reported that approximately 60% of organizations that have automated reconciliations close their quarterly books in six business days.
Is it easy to identify overdue payments and unresolved balances?
In a perfect world, everyone would pay on time; unfortunately, that’s not always the case in business. Unlike manual invoices and records, automated order solutions make it very easy for financial teams to quickly identify vendors with outstanding balances and conduct proper follow-up.
Is our financial data accurate, up-to-date and actionable?
The best financial information helps you make informed decisions. Order automation solutions with built-in APIs can help businesses consolidate all critical financial data to generate consistent reports for in-depth analysis.
If you’re looking for an automation solution, talk to us! We provide quickly growing brands and distributors with an automation infrastructure to seamlessly process orders from all of their retail partners. Learn more here.