Updated Settle Platform Helps CPG Brands Optimize Operations

Settle, the developer of an operations platform that helps consumer packaged goods (CPG) brands scale, launched its expanded procurement and inventory management suite this month following the acquisition of inventory management firm Turbine.

This acquisition brings advanced inventory operations and forecasting capabilities to Settle’s cash flow management platform. It aims to streamline payments, purchasing, and financing operations for omnichannel brands, enabling them to scale faster and more profitably.

The new platform addresses significant pain points for CPG founders and operators, who often spend countless hours navigating disconnected systems and manually consolidating data from spreadsheets, inventory, and bill pay platforms.

According to Settle, these manual processes reduce accuracy and visibility at the SKU level. Brand operators report needing to update an average of six separate systems for a single SKU, leading to costly errors, stockouts, and poor margin management.

Alek Koenig, Settle’s CEO and founder, said this launch and acquisition position Settle to transform how small businesses leverage their inventory and finance operations to unlock faster, more profitable growth.

“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 are known for — on one unified platform,” he told the E-Commerce Times.

AI-Powered Forecasting Boosts Inventory Efficiency

Koenig noted that the new Settle platform enables CPG brands to achieve higher margins with a leaner team and ultimately drive their bottom-line savings. The automatic three-way match feature helps brands identify costly discrepancies. It includes SKU management and reconciliation across purchase orders, invoices, and bills.

Brands can now order and receive the inventory they need by auto-syncing to sales channels like Shopify and the warehouse management systems used by thousands of third-party logistics companies nationwide. AI-powered inventory forecasting increases accuracy and reduces manual guesswork.

Using machine learning models (MLMs), brands can forecast demand for existing product sets, receive recommended timelines for ordering finished goods and raw materials, and predict lead times based on historical data. These capabilities ensure an optimal balance between avoiding stockouts and maintaining healthy cash flow by minimizing excess inventory and reducing the risk of lost sales.

“The new Settle functionality creates a unique trusted source spanning all supply chain-related functions. This integration allows CPG brands to stay focused on business and not on piecing together information,” according to Chris Jacob, CFO of HigherDose, a wellness company in New York City.

“For all retailers, cash and inventory are synonymous. Only Settle’s functionality consolidates insight into the more elusive aspects, such as three-way matching and changes in landed costs. Settle serves our business holistically, and we have left single-solution providers behind for good,” he said.

Simplifying Omnichannel Complexities for CPGs

According to Koenig, financial operations platforms play a critical role by ensuring that a brand’s processes — from procurement and inventory management to payments and inventory financing — are connected.

For omnichannel businesses, having real-time visibility into inventory and accuracy down to the SKU level ensures margins are maximized, prices are set at optimal levels, and goods are on hand to make the deal.

“While direct-to-consumer [DTC] only brands find a lot of value, it becomes a lot more challenging when you are omnichannel, so the pain point is that much greater,” he said.

Settle’s new platform enables CPG brands to proactively manage their inventory, cash flow, and vendor relationships. These features help ensure a seamless shopping experience for customers across all channels.

“Settle harmonizes all inventory and financial operations in one platform to simplify the additional complexities of omnichannel brands,” he added.

Automating back-office tasks eliminates remedial but necessary business chores. Procurement, inventory management, and payment features automate tasks like calculating landed costs, leaving more time for businesses to focus on expanding.

Unique Benefits for CPGs

Koenig described Settle as the only platform in the market that is built specifically for CPG brands. It helps flip the traditional reactive supply chain management model to proactive by breaking actions into to-dos across all workflows, from SKU management to inventory reordering.

CPG brands face challenges like supply chain disruptions. Take, for example, the recent East Coast dockworkers’ strike at shipping ports, which is temporarily suspended. Other challenges include the impact of inflation, pricing pressure, and labor shortages, all of which can seriously strain their operational efficiency.

“Managing cash flow and inventory effectively 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 like stockouts, overstocking, and a lack of margin visibility. These hurdles make it harder for them to scale effectively and convey accurate financial metrics if they are talking to investors.

Koenig added that Settle addresses these challenges for CPG brands. Its unified platform eliminates self-built spreadsheets, copying and pasting data from multiple systems, and not trusting the resulting accuracy and visibility on costs and margins.