On the other hand, this task is significantly simplified when companies turn to digital solutions such as those provided by Siemens and Atos, which can assist CPG manufacturers in successfully managing risks and digitally transforming their manufacturing businesses.
This guide advises CPG executives on how to effectively manage change drivers and why establishing a closed-loop manufacturing environment has benefited many CPG companies.
CPG manufacturers need to ensure product quality is high while remaining profitable
Energy and raw material prices are rising and volatile, posing challenges for CPG manufacturers. Companies cannot pass on those costs to customers through higher prices without losing customers to a competitor. To meet consumers' demand for safe, high-quality products while remaining profitable and competitive, businesses must find alternative solutions to this problem, such as creating more efficient manufacturing processes and cutting costs where possible without sacrificing product quality. Ignoring these elements can have a negative impact on a company's reputation, margins, and market share.
CPG sustainability in supply chains
Customers are paying more attention to their favorite CPG brands' commitment to sustainability and environmental health now more than ever. And their concerns go beyond the policies and practices of the manufacturers themselves. CPG brands are increasingly expected to strive for sustainability in a holistic manner, which includes considering the environmental impact of their materials and supply chain.
To reduce their overall carbon and energy footprints, CPG manufacturers must examine all aspects of their operations and implement the necessary measures.
Closed loop manufacturing process in CPG
Whether you've begun your digitalization journey, are laying the groundwork, or are just plotting your course, one thing is certain: if you want to remain a manufacturing leader in the next decade, you must take it. Closed-loop manufacturing is the foundation of this digitalization journey.
Atos and Siemens' digital twin approach assists CPG companies in closing the manufacturing loop. Businesses must integrate product design, planning/scheduling, and execution without employing silo processes that impede transparency and progress.