The manufacturing sector, including consumer-packaged goods (CPG), is undoubtedly in a transformative phase. Business operations are being redefined by various challenges and changes such as:
- Companies seem to be going the extra mile, delivering a wider variety of services to more and more customers.
- Customers are becoming savvy shoppers, preferring online purchases with minimum assistance from sales staff.
- Cloud-based solutions are becoming the new standard. The increased efficiency and potential cost reductions offered by the cloud appear to be significant factors that are hard to overlook.
- Tax and reporting requirements at various levels are becoming increasingly complex, as is their compliance for businesses.
As a response to evolving market needs, CPG manufacturers are globalising; scaling their data, operations and infrastructure to new heights. This process often involves integrating cloud-based technology, notable for potential cost benefits, seamless application and improved data usage. Reflectively, these features lead to scalable, flexible, and readily implementable commerce solutions.
In sync with these technological shifts, CPG manufacturers are also increasingly aware of the need to successfully navigate the complex world of tax regulations. This awareness is particularly heightened by governments' varied tax impositions at each stage of the supply chain. Tax obligations should be incorporated into all facets of their operations (data collection and usage, pricing strategies, shipping management, etc.) in a consistent manner across all systems and processes.
Spryker, a Vertex technology partner and composable digital commerce platform provider, has covered the topic of CPG and its complexities in several recent assets. Boris Lokschin, co-founder and CEO, states that a blend of technology and composability will assist in forming a future-proof foundation in the dynamic realm of consumer-packaged goods.
“By integrating services in a composable way, companies can efficiently navigate the challenges of the tech-savvy online shopper. Composable architecture also enables seamless adoption of cloud-based solutions, providing unparalleled flexibility and cost efficiencies. As tax and reporting requirements grow in complexity, a composable approach ensures consistent and adaptable incorporation into all facets of CPG operations," said Lokschin.
By providing personalised commerce experiences, customer satisfaction and loyalty can be enhanced. This approach not only leads to potential cost reductions and increased profit margins but also equips businesses with the tools they need to excel in the digital era. Rather than merely surviving, these strategies can enable CPG manufacturers to thrive in this digitally driven marketplace. For more expert insights on CPG, read my commentary in The Future of CPG and Digital Commerce, According to 6 Expert Voices, hosted by Spryker.
Please remember that Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information. The views and opinions expressed in Tax Matters are those of the authors and do not necessarily reflect the official policy, position or opinion of Vertex Inc.