How Digitalization is Driving Efficiency in Consumer Goods Production

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Digitalization in Consumer Goods Production

How Digitalization is Driving Efficiency in Consumer Goods Production

At the recent Hannover Messe Fair, Neil Smith, Segment President of Consumer-Packaged Goods at Schneider Electric, shared detailed insights into the company’s strategic focus and innovations within the Consumer-Packaged Goods (CPG) sector. His discussion with Greg Orloff from IIoT World highlighted significant trends, challenges, and Schneider Electric’s approach to sustainability and digitalization in the CPG industry.

Defining CPG at Schneider Electric

Neil Smith defines CPG at Schneider Electric as encompassing three principal industries: household and personal care, food and beverage in all its forms, and life sciences. At Hannover Messe, Schneider’s booth was predominantly oriented towards life sciences, showcasing their latest technologies and solutions tailored for this industry.

Key Trends in the Consumer-Packaged Goods Industry

Neil identifies several major trends impacting the CPG sectors:

  • Decarbonization and Sustainability: These are at the forefront of considerations for many CPG companies, driving substantial investments.
  • Increasing Complexity in Manufacturing: The shift from mass production to personalization, heightened regulations, and premiumization increase complexity in manufacturing processes. This change is evident in the life sciences sector, where there is a movement towards producing personalized medications, known as “batch of one” productions.

Schneider Electric’s Role in Digitalization and Sustainability

Neil discusses how digital technologies play a crucial role in addressing these industry trends:

  • Strategic Digitization: Schneider Electric engages with companies to identify critical digital transformation areas, enhancing operational efficiency and sustainability.
  • Unified Operations Center: At the event, Schneider showcased their Unified Operations Center, which integrates various operational aspects, such as energy management and production metrics, into a single real-time monitoring system. This integration aids in smarter, faster decision-making across different levels of the organization.

Overcoming Industry Challenges

The integration of new technologies and strategies is challenging. Smith noted that organizational silos within companies often hinder the effective implementation of new solutions. However, if repurposed or better integrated, many existing technologies in facilities can significantly improve efficiency and sustainability outcomes.

Schneider Electric’s Outreach to SMEs

Highlighting the importance of supply chains in sustainability efforts, Smith explained Schneider Electric’s Energized program, which helps small to medium enterprises (SMEs) within their supply chains to decarbonize. This initiative supports Schneider’s large clients by reducing their indirect carbon footprint and fosters broader industry improvements across various sectors, including semiconductors and mining.

Why Manufacturers Should Watch This Video

Manufacturers and industry professionals should watch this interview for several reasons:

  1. Understanding Industry Transformation: Gain insights into the current trends transforming the CPG industry and how major players like Schneider Electric are addressing these changes.
  2. Strategies for Sustainability: Learn about the strategic integration of sustainability practices within business operations, which is crucial for future-proofing businesses.
  3. Digital Transformation Examples: Discover real-world applications of digital technologies that enhance operational efficiency and decision-making.
  4. Innovative Business Practices: Explore how Schneider Electric helps SMEs in their supply chain embrace sustainability, offering a model that can be replicated across industries.

This discussion provides valuable perspectives on managing the complexities of modern manufacturing and highlights the role of sustainability and digital technologies in shaping the future of the CPG industry.

The interview was recorded by Greg Orloff during the Hannover Messe 2024. This summary was created based on the video transcript with the assistance of It was edited by the IIoT World team.

Sponsored by Schneider Electric