No Audio There is no audio in this video. ⏸ TRANSFORM 2024 Global Finance Trends Survey Report 2024 Consumer Goods and Retail Finance Priorities Download Survey: CPG and Retail Finance Leaders Focused on Foundational ChallengesProtiviti’s latest survey of finance executives at retail and consumer goods (CPG) companies shows a clear focus on technology-enabled financial planning and analysis (FP&A), and a growing need to address foundational challenges, including data standardisation and FP&A processes, before embarking on advanced technology initiatives. The finance leaders face increased pressure to maximise their approach to technology, data, FP&A and stakeholder collaboration to help their companies navigate changing market demands and operational complexities.In this year’s survey, the finance leaders ranked financial planning and profitability analysis and reporting, strategic planning, routine reporting and closing activities, security and privacy of data, and process improvement as their top five priorities for the next 12 months. Cloud-based applications and internal customers' changing demands and expectations were No. 6 and No. 7, respectively.Why it matters: Uncertainty looms large heading into the new year. Retailers and CPG companies must reevaluate their pricing strategies and inventory management to maintain a competitive edge. Utilising real-time data analytics and strategic insights will be key. Furthermore, tackling crucial challenges such as grasping customer needs, standardising data, and improving forecasting capabilities will become increasingly vital.Top Priorities for CPG and Retail Finance Leaders1. Financial planning and profitability analysis and reporting2. Strategic planning3. Routine reporting and closing activities4. Security and privacy of data5. Process improvement6. Cloud-based applications7. Changing demands and expectations of internal customers8. Leadership (within your organisation)9. Tax changes10. Enhanced data analytics Download Topics Business Performance Industries Retail Navigating market uncertaintiesIn the United States, companies are bracing for a wave of uncertainty in the marketplace as they wait to see how policy proposals from the incoming Trump administration and a Republican-led Congress will take shape. For more on this topic, please read our report Trump 2.0: Possible Winners and Losers.Potential changes in tariffs and tax codes could significantly affect how retailers operate, price their products and maintain profitability. For instance, product and service price increases in response to tariff hikes would necessitate a strategic approach to inventory management. Businesses will need to model pricing changes effectively to mitigate risks and sustain profitability. They must also anticipate how these shifts will influence consumer spending patterns, which means that access to real-time data analytics and strategic insights will be even more critical.Strategic planning starts with data visibilityFor many retail and CPG companies, the immediate, No. 1 priority is improving data access, visibility and standardisation to support accurate FP&A. The focus is less on deploying advanced technologies like artificial intelligence (AI) and more on laying the groundwork for reliable analytics and insights.So many organisations are struggling to consolidate data from disparate sources, harmonise it and create a consistent framework for analytics. The lack of standardised, reliable data not only hinders day-to-day forecasting but also delays long-term strategic planning. Historical data patterns are critical for making informed decisions, particularly in areas like product pricing, profitability analysis and financial forecasting.A good example of this is an equipment manufacturer working with Protiviti on a performance-improvement project. The company seeks to enhance visibility into the profitability of its dealer programmes. The project involves consolidating data from various sources and systems, developing and standardising it, and ensuring alignment to generate insights necessary for strategic decision-making around these programmes.AI strategies: Bridging the gapOur survey also examined how finance departments in retail and CPG companies are leveraging generative artificial intelligence (GenAI). Of those surveyed, 74% said they are employing GenAI for different functions, including:Process automation (58%)Financial forecasting (55%)Product or service pricing strategy (52%)Expense management (35%)Portfolio optimisation (32%).Notably, AI is ranked No. 15 among the highest priorities, indicating that some finance leaders are still trying to address the basic foundational components that support AI and advanced technologies: data access, accuracy and format, and the streamlining and standardisation of the underlying processes.Also, at many retail and CPG companies, conversations around AI often remain high-level, focusing on broad solutions that aim to address multiple large-scale use cases. In some cases, the push by AI providers for easybutton solutions overlooks the nuanced inefficiencies within business operations.All this suggests the need for targeted technology-based solutions that address deeper inefficiencies beyond board-level discussions and a more hands-on approach to developing tailored automation and analytical solutions.Cloud-based applications and financial collaborationThe survey shows that the adoption of cloud-based applications (the No. 6 priority) continues to grow among retail and CPG teams as they seek to integrate data and improve collaboration across departments. Last year, cloudbased applications were ranked No. 10 on the priority list.It also shows that finance leaders are increasingly working alongside other departments, from supply chain to marketing to HR teams, to generate actionable insights that go beyond the numbers. These partnerships are essential for aligning financial strategies with broader organisational goals.Data security and privacy, ESG, and leadershipProtecting data and systems from cyber threats remains paramount: According to the survey, it is the No. 4 priority. As organised crime increasingly targets supply chains, retailers and CPG companies recognise that robust cybersecurity measures are essential to safeguard operations.Environmental, social, and governance (ESG) considerations remain a priority for finance leaders as regulatory pressures and stakeholder expectations grow. This will remain the case as consumers continue to show a strong preference for ethical brands.Leadership development and talent acquisitionBuilding leadership pipelines and acquiring the right talent are critical challenges for retail and CPG companies. Boards are prioritising leadership development (the No. 8 priority) to ensure business continuity and strengthen organisational resilience.This is particularly critical for the finance function, which must include skilled professionals capable of managing data-harmonisation efforts and establishing foundational analytics capabilities. Without this groundwork, companies will struggle to transition to more advanced technologies or strategies.What’s next?The year ahead presents great uncertainty in the economic and regulatory environments. Improved data visibility, reliable historical trends and robust reporting frameworks will enable retail and CPG finance leaders to navigate the changes and position their organisations for sustainable growth.Also, a thorough understanding of customer behavior and preferences is more important than ever for retailers. Here is the bottom line:Finance organisations will face heightened demands for data-driven insights to support strategic decisionmaking and respond to increased information requests internally.Recognising the diversity in consumer financial situations and adapting strategies accordingly will be critical for success.When macroeconomic and policy environments are changing rapidly, getting control of the fundamentals of financial data management can be as important as adopting new technology.To learn more, read our research report, Transform: Assessing CFO and Finance Leader Perspectives and Priorities for the Coming Year, available at https://www.protiviti.com/sg-en/survey/global-finance-trends-survey. 2024 Global Finance Trends Survey Explore key findings from our finance survey on CFO transformations and global trends, emphasising tech's role in strategic growth and security. Read more Relevant Solutions Pro Briefcase Finance Transformation Protiviti helps finance leaders address their current challenges, prepare for future challenges, and explore opportunities for continuous growth, delivering innovative solutions and supporting finance as a forward-thinking, strategic partner for the business. Pro Briefcase Business Planning & Analysis Protiviti's Business Planning & Analysis practice supports our clients through this accelerating pace of strategic decision making with real-time planning activities, leveraging analytics to provide meaningful insights to drive business performance. Pro Screen System Integration Finance Technology & Data Protiviti can help you harness, analyse, and leverage data more efficiently so your organisation can make data-based business decisions.