How the CPG industry can benefit from automation

Consumer packaged goods (CPG) are items used daily by consumers that require routine replacement such as food, beverages, clothes, tobacco, makeup, and household products. While consumer demand for CPGs largely remains constant, this is also a highly competitive sector where consumers can easily switch their brand loyalty.

Getting the right product to the right place at the right time is critical for all manufacturing companies. For producers of CPG products, this is vital to ensuring continued success and profitability.  An integrated and automated organization is critical to reaching this goal.

We’ve put together a list of 3 ways in which the CPG industry can benefit from automation:

  1. Compliance

The Food and Drug Administration’s (FDA) website has an entire library dedicated to the regulations on the CPG industry.  Through automation CPG companies can ensure accurate reporting with real-time snapshots of the company’s operations.  Improving accuracy with reports also dramatically improves the auditing process with regulatory bodies such as the FDA.  

  1. Online sales

There is no doubt that online sales are booming for the CPG industry.  According to McKinsey, “as much as 30%, or $50 billion, of the CPG industry’s sales growth in the next five years will come from online.”   However, one area where traditional retailers have still done better with sales is through up-selling, cross sales, information selling, etc.  Through use of data analytics, manufacturers can now develop a strong digital business core to support those additional sales efforts.

  1. IoT

The CPG industry can harness the Internet of Things (IoT) technology to streamline their manufacturing process.  The IoT can be used to deliver better customer experiences by incorporating technology into products. For example, inexpensive sensors on perishable goods can measure temperatures and send a warning if products are not being stored in the correct conditions.  Implementing such a technology would not only ensure product quality, but would also be critical in preventing product loss, a major cost to the CPG industry.

In conclusion

Manufacturers of consumer packaged goods have a common goal: get the right product to the right place at the right time and in the right quantities. Automation throughout any CPG organization is critical to reaching this goal.  Automation is also a key for the building of an agile and effective enterprise.

For information on automating your CPG organization, reach out to Treehouse Technology Group today for a free 30-minute consultation.  

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