The procurement and supply chain industry are facing uncertainty when it comes to Brexit. In the past the FMCG market has been described as recession-proof due to a shopper’s need for cosmetics, health care products, coffee, alcohol and chocolate. These FMCG items are purchased regardless of market conditions.
The FMCG market has proven to be resilient to previous economic changes time and time again so will it continue and survive the dreaded Brexit? How will the market change? How will your procurement and supply chains change to respond to the FMCG market?
As with all industries in the UK, Brexit will cause changes within the dynamics of the FMCG sector, particularly in regards to EU trading. FMCG will be impacted on account of strengthening or weakening of currencies and broadly follows the overall demand/supply dynamics. The U.S. dollar is expected to strengthen against major currencies until uncertainty over Brexit ends. Other areas to consider are:
Quality, ethics and sustainability
The unexpected exchange rate will push companies to save money on all fronts, suppliers will tighten their belts resulting in less consistent quality and sometimes unethical practices. Demand for SQA/SQM knowledgeable procurement professionals will increase and ethical sourcing and sustainable supply chain strategies will develop from the idea phase to becoming key business requirements.
Whether you are a retailer, a brand or a supplier to a brand, adding value is going to be a key ingredient if you want to charge extra for your products. While ‘extra special’, ‘finest’ and ‘luxury’ ranges usually justify the extra cost through increased quality of a product, consumers usually come to expect a higher level of service. Supply chain functions will need to be quicker and more streamlined than ever to compete in the market.
Building a strong team
Why not start by developing a team of skilled professionals with the necessary abilities and experience. This will set your organisation up to be a dynamic and adaptable organisation.
Trying to secure top procurement and supply chain talent can be challenging, to acquire the best professionals for the team follow these key tips for recruiting in FMCG.
Tips for recruiting FMCG procurement staff in the current market
•Before recruiting, consider a relocation allowance and a budget for advertising if this is a route you want to go down. You may also want to consider an increased salary if the candidate receives a counter-offer and you want to match it. Recruitment might seem expensive but it is not as expensive as employing the wrong person.
•Interviewing is a two-way process. Top quality professionals are difficult to find, if you like a candidate, act quickly.
•If you are unsure about someone, be respectful and provide them with constructive feedback. Remember, you may have to revisit them as a potential candidate in the future.