In 2021 the EU commission conducted a screening exercise to reveal that 42% of claims examined were exaggerated, false or deceptive. It’s no wonder consumers are increasingly skeptical of brand statements.
Yet in today's highly competitive consumer product industry, brand trust is everything. From food and beverage to cosmetics and household goods, customers expect brands to not only meet but also consistently deliver on their promises. Whether it’s a commitment to sustainability, quality, or transparency, failing to meet these expectations can lead to a breakdown in consumer trust—a commodity that’s incredibly hard to regain once lost. This becomes even more pertinent in a world where economic pressures and environmental concerns have pushed consumers to be more discerning and critical of the brands they support.
In this context, how can consumer product companies adapt and thrive? The answer lies in connecting the value chain more effectively—leveraging digital solutions to build transparency, trust, and speed in delivering on brand promises. Let’s explore how organizations can better link their processes across the supply chain, quality management, regulatory compliance, and customer engagement to ensure they not only meet but exceed expectations.
The Pressure to Adapt: Why This Matters Now More Than Ever
As the global economy faces cost-of-living crises and the effects of stricter environmental regulations, consumer brands are grappling with heightened scrutiny. Claims about sustainability and ethical practices are being dissected by increasingly informed consumers. In fact, a recent study found that 73% of consumers believe companies overstate their sustainability efforts. In a climate where greenwashing can easily tarnish a brand’s reputation, companies must back up their promises with verifiable data.
Moreover, regulatory frameworks like the EU’s Green Deal are raising the stakes for compliance. Companies can no longer afford to merely talk the talk—they need to walk the walk by ensuring their products adhere to these emerging rules. Failure to do so can lead to product recalls, fines, and damaged reputations that can take years to rebuild.
But the challenge goes beyond external pressures. Internally, companies often deal with siloed departments—quality management teams, regulatory bodies, and supply chain managers—that may not always communicate effectively. This lack of collaboration can lead to delays, missed opportunities, and unintentional missteps in delivering on brand promises. Broken decision-making changes are costing about 530,000 days of managers’ time each year for a typical Fortune 500 company, equivalent to some $250 million in wages annually.
Building Trust Through Transparency
The cornerstone of any successful brand is trust. To build and maintain this trust, companies must prioritize transparency across their entire value chain. This is where digital platforms come into play. Solutions like Veeva’s QualityOne and RegulatoryOne are designed to unify data and processes, making it easier for companies to track their products from concept to consumer. By providing a single source of truth, these platforms eliminate the fragmentation that often plagues large organizations.
Transparency doesn’t just benefit the company; it also fosters trust among consumers. For instance, when a company can provide accurate, real-time information about the sustainability of its supply chain, it strengthens its credibility and positions itself as a leader in ethical practices. This is crucial at a time when 73% of millennials are willing to pay more for sustainable products.
Leveraging Data to Drive Agility and Accountability
Digitalization of the value chain not only enhances transparency but also equips companies with real-time data that can be leveraged to drive agility. In the fast-moving consumer products space, the ability to pivot quickly in response to new regulations or market demands is critical. For instance, using integrated platforms like Veeva Vault, companies can streamline regulatory compliance, ensuring that products meet local requirements faster and more efficiently.
The ability to access and act on data in real time is a game changer for crisis management as well. Imagine a scenario where a batch of products is recalled due to quality issues. With a connected value chain, companies can trace the problem back to its source almost instantly, addressing the root cause and implementing corrective actions quickly. In contrast, a disjointed system could result in longer response times, increased costs, and greater damage to the brand’s reputation.
The Role of Unified Quality Management Systems
An integrated quality management system (QMS) is another crucial element in connecting the value chain. Traditionally, quality management has been siloed from other functions like regulatory compliance and supplier management. However, in today’s interconnected landscape, these areas must work in tandem to ensure that brand promises are met.
Veeva’s QualityOne suite, for example, provides a unified solution that covers everything from supplier management to audits and corrective actions. This unified approach not only increases operational efficiency but also ensures that quality standards are maintained across every touchpoint in the value chain. By having all quality-related processes under one roof, companies can act faster to prevent issues, minimize recalls, and ultimately protect their brand integrity.
Incorporating these digital solutions helps to foster a proactive rather than reactive approach to quality management. Instead of waiting for problems to occur, companies can anticipate and address potential issues before they escalate, ensuring that products consistently meet or exceed consumer expectations.
Fostering Collaboration and Stakeholder Engagement
A well-connected value chain also promotes better collaboration among stakeholders, from R&D teams to suppliers and even external regulatory bodies. Veeva’s cloud-based platforms, for instance, enable real-time collaboration across departments, making it easier for teams to share data, insights, and progress on projects. This is particularly important for companies operating in highly regulated industries like food and beverage or consumer goods, where delays or mistakes can lead to significant financial and reputational repercussions. Importantly it manages change efficiently and reduces disruption - up to 33% of change steps can be eliminated by introducing a digital platform that connects people, unifies data, and consolidates fragmented processes.
In addition, fostering better collaboration within the value chain can help companies address greenwashing concerns more effectively. With tools like Veeva Claims Management, brands can ensure that every claim made about a product—whether related to its sustainability, health benefits, or sourcing practices—is substantiated and compliant with local regulations.
Accelerating Time-to-Market Without Compromising Integrity
Speed is another critical factor in today’s consumer products industry. With trends changing rapidly and consumer expectations evolving at breakneck speed, companies need to accelerate their time-to-market to stay competitive. However, this speed cannot come at the expense of quality or compliance.
By connecting the value chain through digital platforms, companies can streamline their processes and reduce the time it takes to bring a product from concept to consumer. For example, automated workflows and real-time data access allow teams to identify potential bottlenecks early in the product development cycle, ensuring that issues are resolved quickly without delaying the launch.
Moreover, a well-connected value chain allows for faster innovation. With better access to data, companies can quickly adapt their products to meet new market demands or regulatory requirements, all while maintaining the integrity of their brand promises.
Turning Challenges into Opportunities
In a world where trust is paramount, consumer product companies must prioritize connecting their value chains to better deliver on brand promises. According to Inc., a Label Insight study found that 94% of consumers studied were more likely to be loyal to a brand that commits to transparency. Executives need to ask if their digital transformations are clearly setting their company on this path. This isn’t just about avoiding pitfalls like greenwashing or product recalls—it’s about turning these challenges into opportunities to build stronger, more resilient brands. Resilience is the true worth of a brand in today's supply chain - it will not only drive better risk assurance but also ultimately innovation, as we move towards predictive rather than reactive brand strategies.
Digital solutions like Veeva’s QualityOne and RegulatoryOne are critical in helping companies achieve this by providing the transparency, agility, and collaboration needed to navigate today’s complex landscape. By investing in these technologies, companies can not only meet but exceed consumer expectations, ensuring their brand promises are more than just words—they’re a reality backed by data.
Now is the time for companies to embrace these tools and connect their value chains to not only survive but thrive in the modern market. Ready to make your brand promises a reality? Connect with our team of experts to explore how we can help your organization build trust and resilience across the entire value chain.
