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An extended period of costly supply chain imbalances, coupled with uncertainty around future consumer spending and evolving preferences, has left many companies wary of building too much inventory going into this holiday season. Q3 data would suggest inventory turns are accelerating across most CP sectors, which is likely to persist. 

As volatility continues to subside, CP companies are increasingly leaning in to adopt digital enablers and AI to better manage inventory replenishment and deployment.  Leading companies are increasing supply chain investment to better align with changing consumer priorities – with an emphasis on visibility & flexibility, demand signal accuracy, and delivery speed – and this focus on network optimization will likely continue to be an important theme for 2024.

On a monthly basis, AlixPartners charts sales, sentiment and supply chains in consumer-facing businesses. Learn more about the Consumer Products Corner newsletter and read previous articles, here.