DOSS Study Reveals Critical Operational Gaps in CPG

DOSS Study Reveals Critical Operational Gaps in CPG

In the high-stakes world of Consumer Packaged Goods, the difference between a record-breaking launch and a costly failure often comes down to the invisible gears of the supply chain. Zainab Hussain, a seasoned e-commerce strategist and expert in retail operations, has spent years navigating the complexities of customer engagement and the granular details of manufacturing workflows. Following a comprehensive study of 230 U.S. operations leaders, it has become clear that rising costs and supply chain volatility are exposing deep-seated cracks in how brands manage their data. From the frustration of mislabeled pallets to the disillusionment surrounding artificial intelligence, the industry is at a crossroads where manual processes are no longer sustainable. This conversation explores the operational gaps that lead to multi-week delays and why even the most expensive enterprise software often fails to solve the core issues facing modern retail brands.

With roughly half of operations leaders reporting shipments with incorrect labeling or packaging, why do these communication breakdowns persist despite the massive investments brands have made in supply chain technology?

The reality is that while brands have spent heavily on individual pieces of software, they haven’t unified their systems, which leaves different departments working in total isolation. Critical product information is scattered across Walmart or Target spec sheets, compliance requirements from various retailers, and format templates from contract manufacturing partners that never actually sync with internal artwork files. We see a recurring nightmare where the brand, the manufacturer, and the logistics provider are all working from completely different versions of the truth. The breaking point typically occurs during coordination with contract manufacturers, who are the ones physically putting the product together. About a third of the errors we track can be traced back to a brand sending a specification that the manufacturer interprets against an outdated template, resulting in a product that hits the retailer’s warehouse with the wrong barcode or pallet setup. It is a sensory letdown for an operations team to see months of hard work arrive at a loading dock only to be rejected because of a simple communication lag.

The data shows that one in four product launches are delayed by an average of 2.4 weeks; what are the specific operational hurdles that are causing these significant setbacks for brands today?

A 2.4-week delay might sound minor on paper, but in the fast-moving retail environment, it can be a death sentence for a seasonal launch or a specific shelf reset. These bottlenecks are rarely caused by a single machine breaking down but are instead the result of coordination and visibility problems across dozens of moving parts. When a retailer like Walmart changes its shelf requirements or an electronic data interchange mapping lags behind a new compliance rule, it creates a domino effect that halts every downstream workflow. This friction is compounded by a staggering reliance on manual processes, with nearly 40% of the workday being swallowed up by manual data entry. Teams are stuck in a loop of re-keying purchase orders and trying to reconcile inventory counts between the warehouse and the financial system by hand. This level of manual labor doesn’t just slow down decision-making; it injects a high probability of human error into timelines that are already incredibly compressed.

When 36% of leaders admit to making major business decisions based on outdated or incorrect data, is this primarily a failure of the tools they are using or a deeper organizational issue?

It is a combination of both, and the two problems feed into each other in a way that makes them difficult to untangle. On the technical side, the average consumer brand is running on a fragmented stack of systems—an ERP that wasn’t built for CPG, a separate warehouse system, and a mountain of spreadsheets for manufacturer coordination. Because these systems don’t talk to each other, teams end up spending most of their time just trying to stitch data together before they can even begin to analyze it. Organizationally, this creates a environment where departments optimize for their own narrow goals rather than the health of the whole company. Procurement focuses on cost while Operations focuses on stock levels, and by the time Finance gets the data to close the books, the information has degraded at every handoff. This is exactly why 44% of teams describe their operations as reactive; they are always looking in the rearview mirror instead of anticipating the road ahead.

Given that 40% of brands are already using AI but only 14% report meaningful efficiency gains, are we seeing a situation where companies are trying to automate processes that are fundamentally broken?

There is definitely a sense of “putting the cart before the horse” when it comes to AI in the retail supply chain right now. AI is only as powerful as the data foundation it sits on, and if that foundation is made of fragmented systems and manual spreadsheets, the AI will simply deliver the wrong answers faster. We have seen operations leaders start to actively distrust AI forecasting outputs because the model is being fed inventory data that is already three days stale and reconciled by hand. You cannot build a high-tech forecasting house on a weak foundation of inconsistent product data and disconnected order flows. The small 14% of brands that are actually seeing gains are the ones who did the hard work of cleaning their data and integrating their systems first. For everyone else, layering AI on top of a mess just leads to more confusion and a lack of trust in the technology itself.

As retail expectations continue to tighten and margins shrink, what specific operational capabilities do you believe will define the brands that survive and thrive over the next few years?

The winners in this space will be the brands that move away from generic, one-size-fits-all solutions and toward purpose-built operations software. We see many companies pouring $100,000 or more into NetSuite or SAP implementations, only to find that these systems were never designed to handle the specific complexities of CPG production tracking or retail compliance. A generic ERP cannot manage the intricate packaging and labeling cycles that define the consumer goods world, and trying to force it to do so only leads to more fragmentation. The strongest brands are building a single operational system that links inventory, production, and financial data in real time, allowing them to see a manufacturer delay or a spec change immediately. Ultimately, success will be defined by the ability to reduce operational friction internally before the customer or the retailer ever has a chance to feel the impact of a mistake.

What is your forecast for the future of CPG supply chain management?

I anticipate a massive move toward “operational truth” where the industry finally abandons the spreadsheet-first mentality in favor of integrated, real-time data ecosystems. We are going to see a shakeout where brands that continue to rely on manual data entry and reactive strategies will find it impossible to meet the tightening delivery windows and strict compliance demands of major retailers. As margins continue to be squeezed by volatility, the ability to eliminate that 40% of wasted time spent on manual reconciliation will become a brand’s greatest competitive advantage. In the next three years, the most successful CPG companies won’t just be the ones with the best marketing, but the ones with the most invisible and efficient back-end operations. Data integrity will transition from a “back-office concern” to a primary driver of brand equity and retail partnerships.

Subscribe to our weekly news digest.

Join now and become a part of our fast-growing community.

Invalid Email Address
Thanks for Subscribing!
We'll be sending you our best soon!
Something went wrong, please try again later