Manufacturers of consumer packaged goods are increasingly utilizing analytics to anticipate customer demand and optimize their processes. According to a report from ABI Research, “Industry 4.0 in the Consumer-Packaged Goods Market,” overall, digital factory revenue will approach $24 billion in 2030, with spending by CPGs on data and analytics services forecast to reach $4 billion in 2030, up from $500 million in 2021.
“Plant managers walk a tightrope every day. Too little production leads to shortages and lost revenue opportunities; too much production means that perishable products go to waste,” explains Michael Larner, Industrial and Manufacturing Principal Analyst at ABI Research. “Digital threads across the supply chain are essential.”
Production planning is challenging without information from retailers’ point of sales systems, the report notes. CPG manufacturers need to work with retailers, distributors, and supply chain partners to share sales information through the supply chain, from the farmer to the checkout line. “While creating digital threads across the supply chain will take time, in the short term, CPG manufacturers need to ensure that their production plans are informed by as much relevant data as possible,” Larner points out.
