Challenges and Breakthroughs in the CPG Manufacturing Industry
Modular and Reconfigurable Systems, Advanced Automation, and Mechatronic Solutions Address Critical Operational Issues
By Krupa Ravichandraan, Solutions Architect with Bosch Rexroth
The high demand and frequent replenishment of consumer packaged goods (CPG) require manufacturers to constantly evolve, considering long-term but flexible quality solutions to enhance the efficient output of products into the market. The CPG manufacturing industry faces a number of challenges, such as data utilization inefficiencies, shortages of skilled labor, and frequent machinery upgrades. These issues, if not addressed, can impact future productivity and profit.
Innovative breakthroughs in technology are available to manage these key issues. Forging collaborative relationships with manufacturing technology partners to develop solutions for companies’ unique needs will ensure they stay ahead in an ever-shifting and demanding CPG landscape.
Challenges in CPG Manufacturing
A significant challenge in CPG manufacturing is the inefficient utilization of data. Many manufacturers collect extensive data from their machinery, often from many plants across multiple continents, but struggle to use it effectively for decision-making. Product processes can become limited due to the ineffective use of data. This can result in missed opportunities for optimization and cost savings.
Industry-wide labor shortages also pose a critical problem. Since the pandemic, high turnover rates have created a scarcity of skilled labor and technicians, leading to inefficiencies in operations. Frequent investment in hiring and training new employees to handle machinery disrupts production and negatively impacts company earnings and product output. In general, manufacturers upgrade their machines every three to five years, in part due to consumer trends and market requirements, but also because machines become aged and outdated. When operators and technicians transition out at a faster pace, the loss of knowledge in machine operation can lower the speed of productivity.
The frequent need for machinery upgrades does not only affect worker training and retraining. Investing in new machines at a pace of three to five years can increase capital expenditures. The market’s demand to continually increase efficiency and shifting consumer trends creates a need to upgrade equipment. However, this can cause interruptions and slowdowns that hinder product yields and increase operating costs.
Breakthroughs in CPG Manufacturing
Innovations in packaging machinery manufacturing make it possible to overcome these challenges. Modular and reconfigurable production systems are one notable advancement. Instead of upgrading machines every handful of years, existing equipment can be repurposed to manufacture a new product or a new packaging format, thereby reducing production downtime.
Packaging machinery manufacturers are working on advancing their machine hardware to achieve modularity and simplicity of design to help CPG manufacturers. Modularity can be implemented at the component level within a machine sub-assembly, at the sub-assembly level within a larger assembly, or at the large-assembly level within a packaging machine. Modularity allows for the addition or removal of components to meet changing production needs without significant capital investments. This makes it possible for manufacturers to extend the lifespan of their machinery, adapt quickly to market changes, and reduce costs associated with frequent equipment purchases. This flexibility in production helps manufacturers quickly adapt to changing market demands.
Automation technologies, such as a high-speed smart conveyance system, employ electromagnetic technology to achieve high speed, accurate position, and more modularity in a minimum space. Advancements are currently underway within the CPG machinery industry to integrate open control architecture into their technology. This offers a solution that will improve the reconfigurability of production floors and their footprint.
Innovations like high-speed smart conveyance systems and ctrlX open, flexible automation architectures address the challenges of floor space, reconfigurability, labor shortages and data utilization by automating processes that previously required intervention by workers and providing real-time data for better decision-making. As a result, manufacturers can maintain high production efficiency and quality even with a limited workforce. Automation technologies will ensure a long-term benefit and create a market better for companies.
CPG machinery manufacturers have also made advancements in technology designed to optimize data collection and management strategies. Automated electromagnetic motion solutions and sophisticated open architecture platforms can enhance operational efficiency and improve decision-making while collecting and exchanging information. Companies with manual processes and operators used for highly repetitive tasks will want to upgrade their equipment so they can advance to automation to reallocate their operators for high skilled tasks, and efficiently manage production data to make good decisions and better compete in the market. Electromagnetic motion solutions create smart, efficient systems that will improve performance, reliability, and functionality. It is an investment that will help companies further enhance operational efficiency in the future.
Collaborative development between manufacturers and technology providers is another critical breakthrough in CPG manufacturing. To maintain a competitive edge in the market, it is crucial for manufacturers and technology providers to collaborate in an industry that is consistently evolving. A partnership fosters the development of tailored solutions that address specific operational challenges faced by companies when keeping up with market demand.
Standard solutions do not optimize output given the unique needs of each individual CPG manufacturer. The development of a new packaging technology, based on patented innovations by leading technology providers, demonstrates the power of collaboration. Strategic collaboration has created new packaging technology that enhances the reconfigurability of production floors and reduces machinery footprints. This is exemplary of how partnerships can lead to innovations that allow manufacturers to maintain flexibility and efficiency in production.
Forward-Looking Strategies in the CPG Industry
Successful integration of groundbreaking technologies and strategic collaborations positions CPG manufacturers to better compete and thrive in an often-shifting industry landscape. Adaptability is required to confront the challenges of skilled labor shortages, data management inefficiencies, and frequent machinery upgrades. Innovative technologies and collaborative strategies make it possible to meet, even exceed, high demand, achieving sustained growth.
Breakthroughs such as modular and reconfigurable systems, advanced automation, and mechatronic solutions demonstrate how technology advancements can address critical operational issues. These technologies extend the lifespan of existing machinery, reducing incidences of downtime in production. They further manage the issue of skilled labor shortages by incorporating automation into production processes. Finally, enhanced data collection and management strategies provide real-time insights that will improve decision-making.
A key breakthrough is the formation of strategic collaborations between companies and technology providers. Collaborative development creates innovative technology solutions that optimize operational efficiency. These partnerships give companies a competitive edge in a dynamic market.
Capitalizing on these advancements ensures companies’ position as leaders in the CPG industry.
About the Author
Krupa Ravichandraan is a Solutions Architect with the Consumer Packaged Goods team at Bosch Rexroth. Learn more at www.boschrexroth.com.