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Author's profile photo Andreas Sailer

Industry 4.0 for Consumer Products Industry Part 1

An industry Ripe for Disruption

The consumer products landscape is undergoing radical change. For many years, large consumer products companies with well known brands could reliably grow revenue by increasing market share in their existing markets while expanding into new markets.
But this long run of sustained growth has come to an end. So what is driving the change?
Today’s consumers have so many options from product to channel to delivery that they expect to be provided with choices that are best for them. This changing dynamic puts increasing pressure on consumer products companies to understand and engage with consumers on an individual level.

Today, Consumer Products Manufacturers need to be able to respond to volatile demand, uncertain supply, and constrained capacity. But as we look beyond the recent Covid-19 pandemic, CPG companies must also be able to respond to demanding consumers that will look for individualized and sustainable products.

If anything, this volatility has strongly highlighted the need for Digital Transformation and Industry 4.0.

The Consumer Products company needs an agile and resilient supply chain and manufacturing processes to help manage and mitigate supply chain disruptions in the tough times and maximize business opportunities in the good times.

It´s all about opportunity:  SAP’s Strategy for Industry 4.0 is “Industry 4.Now”

This is about opportunity, not just urgency. It’s about committing your organization to a
new way of working that positions you to lead. And that’s where SAP can help.
We can work with you to move digitalization and Industry 4.0 from factory-focused
initiatives to a companywide, competition-beating business strategy.

SAP’s Industry 4.0 approach addresses three business priorities with a leading strategy:
Move digitalization and Industry 4.0 from factory-focused initiatives to a companywide,
competition-beating business strategy. Combine manufacturing automation with
enterprise business execution.

SAP wants to help enable CPG customers to drive Industry 4.0 initiatives where value can be achieved soon. 4 scenarios to provide flexibility to start:

  • Intelligent Product
    Manage the complexity of individualized products through flexible and seamless engineering and manufacturing processes
  • Intelligent Factory
    Automated manufacturing, leveraging smart machines, and real time data to run autonomous and fast
  • Intelligent Assets
    Evolve from reactive asset management to proactive data driven asset performance
  • Empowered People
    The connected and informed worker and manager

For more information, visit the Industry 4.0 landing page at sap.com

In part 2 of my blog post, I  will be focusing on the first strategic Industry 4.0 theme:
The Intelligent Product.

Read all blog posts of this series:

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