Inventory management is a make-or-break function for brands in the Retail and Consumer Packaged Goods (CPG) industry. With lots of SKUs to track, as well as having the pressure of evolving customer demands, shifting trends, and commitment to deliver fast, small inventory missteps can snowball into major costs or missed opportunities. Managing this complexity in-house can be a strain on resources, especially for newer and growing brands.  

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With that in mind, more CPG and retail brands are turning to outsourced CPG support to stay efficient, agile, and profitable. Offshore support teams give companies access to specialized talent without the overhead, especially when partnering with retail and CPG-specialized outsource providers. Here’s how outsourcing can help CPG businesses with efficient inventory management.  

Inventory Management Challenges in Retail & CPG 

Managing inventory in retail and CPG is anything but simple. Seasonal shifts and unpredictable demand make it difficult to keep stock levels and order accuracy on point. Misjudging stock levels can have a significant and immediate impact on a company’s sales and profitability. In fact, in 2024, inventory distortion, encompassing both out-of-stocks and overstocks, was projected to cost the US retail an estimated $1.7 trillion. 

How Outsourced CPG Support Makes a Difference 

Outsourced logistics management and inventory support roles bring immediate value to any consumer packaged goods company. With back-office support, CPG companies can take advantage of: 

  • Skilled professionals with experience in inventory systems, forecasting tools, and replenishment strategies. 
  • The flexibility to ramp during peak seasons, sales events, or new product launches with the option to keep your team for the long-term. 
  • Better support for your in-house team, who are freed- up to focus on strategic initiatives rather than day-to-day operational tasks. 

For CPG businesses, outsourcing a support team specifically for inventory-related roles allows them to achieve:  

  • Higher inventory accuracy and better real-time visibility into stock levels. 
  • Faster fulfillment capabilities with fewer lost sales stemming from stockouts. 
  • Significant cost savings compared to hiring and training full-time local staff. 
  • Smarter decisions through better use of inventory data, supported by outsourced data entry, analytics, or reporting roles. 

Roles You Can Outsource for Effective Inventory Management 

There is a wide range of functions that can be delegated to an outsourced CPG support team. Among these are inventory management, customer service, logistics, and digital fulfillment, which can all impact efficiency of the CPG inventory and delivery pipeline.  

  • Inventory Management – A team dedicated to inventory management can focus on tracking stock levels, reconciling counts, and flagging replenishment needs, to make sure you have in-demand items available. Delivery management outsourcing allows you to streamline your delivery pipeline, with experts figuring out the scheduling and finding the most cost-effective ways to expedite shipments.  
  • Multi-Channel Customer Service – Outsourced CPG support teams can be mobilized to handle inquiries across phone, email, website, and social media to keep customers updated on order status. Ramping up allows companies to handle a higher volume of requests and inquiries.  
  • Third-Party Logistics (3PL) Support – Outsourced CPG support teams can also coordinate warehousing and shipping for timely delivery of items. Outsourced dispatch services enable companies cost-effective solutions by finding the right partners for items, materials, and finished products.  
  • Supply Chain Management – Tracking purchases with an outsourced team can be much easier, as they are equipped with the tools to handle liaising with vendors, forecasting demand, and planning logistics. 
  • Brand Management & Social Moderation – Monitoring social platforms for customer feedback and addressing concerns immediately is paramount for developing brand loyalty. 
  • Digital Fulfillment – Digital fulfillment teams can also take care of managing coupon codes and gift codes for online purchases. 

Reputable outsourcing providers don’t just match you with talent—they vet, train, and manage professionals to ensure alignment with your brand standards and key performance metrics. 

In Conclusion 

Inventory management is too vital to leave to guesswork. Outsourced CPG support gives CPG and retail businesses the flexibility, expertise, and efficiency they need to thrive. 

Want to optimize your inventory management? Discover how FGC+’s outsourced CPG support solutions can streamline your operations and reduce costs. Learn more about our services at www.fgcplus.com.