Settle, the developer of an operations platform that helps consumer packaged goods (CPG) brands scale, launched its expanded purchasing and inventory management suite this month following the acquisition of inventory management company Turbine.
The acquisition brings advanced inventory operations and forecasting capabilities to Settle’s cash flow management platform. It aims to streamline payments, purchases and financial operations for omnichannel brands, allowing them to scale faster and more profitably.
The new platform solves significant challenges for CPG founders and operators, who often spend countless hours traversing disconnected systems and manually consolidating data from spreadsheets, inventory and bill payment platforms.
According to Settle, these manual processes reduce accuracy and visibility at the SKU level. Brand operators report the need to update an average of six separate systems for one SKU, leading to costly errors, inventory and margin mismanagement.
Alek Koenig, CEO and founder of Settle, said this launch and acquisition of Settle will transform the way small businesses leverage their inventory and financial operations to grow faster and more profitably.
“As the first and only integrated platform built specifically for CPG brands, Settle is dedicated to helping omnichannel brands scale from idea to shelf, including access to the same transparent financing we’re known for—on one unified platform,” he told the E-Commerce Times.
AI-powered forecasts increase inventory efficiency
Koenig noted that Settle’s new platform enables CPG brands to achieve higher margins with a leaner team and ultimately drive their overall savings. Automatic three-way matching helps brands identify costly discrepancies. Includes SKU management and reconciliation of purchase orders, invoices and accounts.
Brands can now order and receive the inventory they need by automatically syncing with sales channels like Shopify and warehouse management systems used by thousands of third-party logistics companies across the country. AI-powered inventory forecasting increases accuracy and reduces manual guesswork.
Using machine learning models (MLM), brands can forecast demand for existing product sets, receive recommended timelines for ordering finished goods and raw materials, and predict delivery times based on historical data. These features strike the optimal balance between preventing inventory and maintaining healthy cash flow by minimizing excess inventory and reducing the risk of lost sales.
“Settle’s new functionality creates a single trusted source covering all supply chain related functions. This integration allows CPG brands to remain focused on the business and not on information aggregation,” says Chris Jacob, CFO of HigherDose, a wellness company in New York.
“For all retailers, cash and inventory are synonymous. Only the Settle function consolidates insight into more difficult aspects such as three-way matching and changes in landing costs. Settle serves our business holistically and we have moved away from single solution providers forever,” he said.
Simplifying the complexity of Omnichannel for CPG
According to Koenig, financial operations platforms play a key role by ensuring that brand processes are connected – from purchasing and inventory management to payments and inventory financing.
For multi-channel businesses, real-time inventory visibility and accuracy down to the SKU level ensures margins are maximized, pricing is set at optimal levels, and merchandise is available to close the deal.
“While direct-to-consumer (DTC)-only brands have great value, it becomes much more challenging when you’re omnichannel, so the challenge is much bigger,” he said.
Settle’s new platform enables CPG brands to proactively manage their inventory, cash flow and supplier relationships. These features help ensure a seamless shopping experience for customers across all channels.
“Settle harmonizes all inventory and financial operations on one platform to simplify the added complexity of omnichannel brands,” he added.
Automating back-office tasks eliminates corrective but necessary business work. Purchasing, inventory management and payments include automated tasks such as calculating acquisition costs, leaving businesses more time to focus on expansion.
Unique benefits for CPGs
Koenig described Settle as the only platform on the market that is built specifically for CPG brands. It helps transform the traditional reactive model of supply chain management into a proactive one by breaking down actions into tasks in all workflows, from SKU management to inventory reordering.
CPG brands face challenges such as supply chain disruption. Take, for example, the recent East Coast longshoremen’s strike at seaports, which is temporarily suspended. Other challenges include the impact of inflation, price pressures and labor shortages that can seriously erode their operational efficiency.
“Effective management of cash flow and inventory has become more complex for CPG as brands juggle multiple sales channels and fulfillment locations, as well as external challenges,” noted Koenig.
Brands often complain about disruptions such as stock-outs, excess inventory and lack of margin visibility. These barriers make it difficult for them to scale effectively and provide accurate financial metrics when talking to investors.
Koenig added that Settle addresses these challenges for CPG brands. Its unified platform eliminates separately created spreadsheets, copying and transferring data from multiple systems, and mistrust in the resulting accuracy and visibility of costs and margins.
