The rise of the internet has posed significant changes for the world of consumer products. From sourcing, to marketing, to channels, and consumer expectations, businesses and teams across many industries have had to adapt or lose out to the competition.
In fact, through his direct experience working with hundreds of businesses, Vice President of Flexport Capital Dan Glazer has identified and analyzed five megatrends facing CFOs and Finance organizations today:
- Increase in Competition. New marketing and advertising channels have given consumers more buying options, and businesses low-cost marketing channels. As a result, competition for consumers’ business has intensified.
- The Rise of Direct-to-Consumer. The rise of the direct-to-consumer business model demands that companies find ways to differentiate the customer experience, often involving fast delivery. This has profound effects on cash flow management and a business’s cash conversion cycle.
- Retailers are Driving Demand. Mega retailers are shifting the way they work with brands and vendors to meet and exceed customer expectations.
- Increased Tariff Volatility. Recent changes in trade tariffs have had tremendous impact on landed costs for brands, and have made it even more difficult to plan strategically.
- Logistics Can No Longer Be an Afterthought. Businesses spend up to 11% of their revenue on transportation. Taking a more strategic look at their supply chains is no longer optional—it’s a must.
Sitting at the intersection of many key functions and partners, CFOs and Finance teams are in a unique role to affect the changes required to use supply chains to spur growth. To learn more about these megatrends and actions for CFOs and Finance teams, read The CFO’s View: 5 Megatrends that Make Supply Chains Growth Engines.