It all adds up to a tenuous time for Consumer Packaged Goods (CPG) leaders —and a compelling need to rethink how and where they make the products that are the lifeblood of their business.
It’s a tricky time for Manufacturers. Technological advances, global trade tensions and market evolutions and, most recently, the COVID-19 pandemic, have accelerated the shift to digital, end to end, from consumer to supply chain and operations.
Based on Accenture’s recent Digital Maturity study of 600 global manufacturers, companies that have invested extensively in digital operations and scaled effectively have yielded higher returns, improved operating income and sustainability.
What progress have CPG manufacturers made towards making digital transformation in manufacturing a reality? Our global research suggests not nearly as much as they could have—or need to. In fact, our study reveals that the average digital maturity of CPG manufacturers throughout end to end operations overall is only 31 percent, on a scale up to 100% where all capabilities are deployed and rolled-out. The average maturity of other industries far outpaces that of enterprises in the consumer goods industry.
Now more than ever, CPG companies need to accelerate the digital transformation of their operations to “catch up” and become truly efficient, resilient and responsible. They need to look at their future from three different perspectives:
- Achieving the next level of efficiency embedding AI and analytics – moving towards autonomous and zero waste operations
- Reinventing the way they make things – moving towards Minimum Order Quantity (MOQ) of 1 and enabling circular models
- Augmenting their workforce, growing their capabilities and maximizing purposeful productivity – moving towards the next level of asset owners
I encourage you to attend the upcoming virtual Springboard on 19th January 2021 organised with The Consumer Goods Forum (CGF) where we’ll explore the key manufacturing trends that are forcing companies to entirely rethink their manufacturing and operations capabilities. We’ll also explore why so many CPG manufacturers are still working on proofs of concept or pilots and what they need to be doing to scale effectively and responsibly, to begin realizing digital’s massive promise, so they’re not left behind.
Accenture will provide insight on the expected returns and in what areas, investment requirements needed to truly drive transformation and win the race for Digital Operations. We will also share data driven facts and Voice of Customer from leading Consumer Goods Companies to help shape the narrative for the future of Manufacturing.
This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors.
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This blog was written and contributed by:
Senior Managing Director, Industry X, Digital Manufacturing and Operations