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Driving Quality: 44% of CPG Industry Leaders Embrace Digital Transformation

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CPG Industry Leaders Embrace Digital Transformation

Titled “State of Smart Manufacturing: CPG Edition,” this global study comprises insights from 216 key leaders within the CPG industry, hailing from 13 prominent manufacturing nations. The study casts a wide net, encompassing manufacturers across diverse sectors like home and personal care, as well as food and beverage, delivering a panoramic view of the CPG landscape. The study probes crucial dimensions including the intricate equilibrium between quality and profitability, the transformative power of process automation, the embrace of smart manufacturing paradigms, and the indispensable role of technology in risk management, product quality enhancement, competitive prowess, and unbroken business operations.

Key Highlights

  • 2023 witnesses a remarkable 52% of CPG manufacturers grappling with inflation as the primary external challenge.
  • On average, CPG entities earmark slightly over 20% of their operational budget for robust technology investments.
  • Leading the technology investments charge are cloud solutions (45%), supply chain planning (42%), and cybersecurity fortifications (41%).
  • Harnessing software for operational streamlining, 57% of businesses embrace process automation, while 63% adeptly deploy software for elevated corporate data tracking.
  • In response to the persistent labor gap, a robust 48% of CPG leaders are steering their efforts toward intensified process automation.
  • Significantly, 90% of CPG manufacturers anticipate a sustained or augmented workforce as a direct outcome of technology adoption. Within this group, 38% envision rechanneling their existing workforce, and 29% foresee the imperative to expand their teams due to tech integration.
  • Smart manufacturing initiatives emerge as the cornerstone for 31% of CPG manufacturers, aiding in adeptly navigating the challenges posed by the Covid-19 pandemic and adroitly adapting to dynamic market shifts. Furthermore, 28% of respondents affirm that smart manufacturing bolsters their cybersecurity resilience.
  • A resounding 95% of CPG manufacturers have embraced robust environmental, social, and governance (ESG) initiatives. Impressively, 44% actively position themselves as sustainability champions, harnessing ESG endeavors as a strategic differentiator in the competitive milieu.

This study resoundingly underscores the pivotal role technology plays in mitigating multifaceted challenges confronting CPG leaders. By adroitly leveraging technology, both internal and external risks are being effectively managed, heralding a transformative shift within the industry. Lee Coffey, Strategic Marketing Manager for consumer packaged goods at Rockwell Automation, underscores the imperative of agility, innovation, and the embrace of novel operational paradigms to navigate the complex landscape. Coffey comments, “The CPG industry has confronted an intricate tapestry of challenges in the past year, including supply chain upheavals, workforce scarcities, and inflationary pressures, collectively exerting a profound impact on businesses. Effectively acclimating to these changes necessitates nimbleness, innovation, and a proactive stance towards new methodologies, ensuring not just survival but thriving amidst these uncertain times.”

On the digital transformation wave, the platform created by GrowinCo. proposes a new tool to help professionals in the CPG industry accelerate processes in a more assertive way. With users in more than 10 countries GrowinCo. has earned acclaim as the premier “Airbnb of industries.” Furthermore, the startup is spearheading the creation of Artificial Intelligence capabilities to rapidly pair projects with the most fitting suppliers within its expansive network, accomplishing this feat in mere seconds. These efforts collectively revolve around streamlining tasks and presenting optimal solutions for enhanced efficiency. Visit https://growinco.com/en/demo-request to know more about and request a demo!

The full report can be downloaded at Rockwell Automation website

Photo: Image by DCStudio on Freepik

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