Taking the Next Step: CPG Digital Transformation

For nearly a decade, Consumer Packaged Goods (CPG) companies have focused on ways to take advantage of IT/OT convergence, IIoT platforms and other digital technologies to improve operations. No doubt, digital transformation holds great promise for driving speed-to-market, manufacturing agility – and lower costs.

But what success have companies achieved to date? What have they learned – and what challenges and opportunities still await in their digital transformation journey?

These are the questions we posed at our recent Food & Beverage Forum held during Automation Fair. I had the privilege of moderating the discussion featuring representatives from Kraft Heinz and AB-InBev. Here are some key insights I took away from the event.

The “Experiment Phase” Is Over

Like many CPG companies, our panelists began evaluating digital transformation years ago, and are now ramping up investment in related technologies. For many still early in their transformational journey, the primary question is how to get started with the systems and data they already have in place.

As Scott Ingles, head of international OT and automation at Kraft Heinz explained: “We sat down and evaluated the major pillars of our organization: quality, safety and production. And we looked at what we needed to do, what data we have today, and what data we still need to close gaps.”  

For Charles Tisdell, global director of connected brewery IIOT & automation, tech supply, AB-InBev, transforming how people work is first and foremost. In other words, as Tisdell said: “Once we have transformed our work processes, what are the data gaps – and other gaps we must close – to automate those processes.”

Panelists agree it’s time to move away from proof-of-concepts – and toward real use cases focused on KPIs and ROIs that are tangible, measurable and visible. A “micro-engagement” strategy is one way to achieve that goal.

“A micro engagement isn’t a proof-of-concept – it’s something we can build on,” Tisdell explained. “There will always be an end goal in mind, but the idea is to start small and then build to achieve that objective.”

And first impressions count. A “grassroots start” and successful implementation is one of the best ways to create buzz and help build momentum.

Readying the Workforce for Culture Change

When it comes to digital transformation, companies across the CPG spectrum have discovered that the technology is often the easy part. Getting both users and the support team committed to the success of that new technology is the challenge.

Our panelists offered the following advice to engage the workforce:

• Ensure the site is prepared for new technology – and that its arrival does not disrupt other critical ongoing objectives.
  
• Understand the workforce requirements and deploy additional personnel as needed. Remember you cannot rely solely on workers already responsible for day-to-day operations.
• Groom champions at the site that have experience with the new technology – and are already engaged. Those champions are key to getting other workers on board.
  
• Keep in mind that as technology is changing, new roles are emerging. This can be especially difficult to manage.
  

“This is an area where we need some work,” Tisdell said. “When you interview a person, you are looking for a certain profile. But if you bring in a new technology and a worker no longer fits the profile – how do you transform that worker?”

Emerging technologies provide some solutions. For example, more CPG companies are exploring augmented reality (AR) platforms to capture and share expertise – and effectively upskill workers.

In addition, the panelists anticipate that new roles will emerge. Specifically, data scientists focused on process optimization will become critical members of operations and maintenance teams.

Standards & Infrastructure: The Foundation for Ongoing Success

For most companies, a successful digital implementation at one facility is just part of the equation. To reap the most value from any investment, solutions must be easily scaled and deployed across multiple sites.

“It goes back to infrastructure – and standards are part of that infrastructure,” said Ingles. “If you’re applying standard solutions, scale-up in your plants becomes straightforward. But if your infrastructure is weak, digital will struggle.”

A well-managed data system is also a critical component of the infrastructure.

“The concept of the ’data lake’ is changing,” Tisdell said. “Every system must include responsibility for the governance and quality of the data generated. So by the time the data reaches the data lake, it’s already quality data that’s ready to be used.”

And with a well-managed data system, data sharing can be more strategic, too.

“Source the data once and use it multiple times,” Tisdell continued. “That’s how you get speed-to-market.”