Smart manufacturing can shape the future of consumer-packaged goods manufacturing in Asia-Pacific

Adopting smart manufacturing integrated with facility production and back-end systems is, according to Marcelo Tarkieltaub, regional director of South East Asia at Rockwell Automation, important for the future of consumer-packaged goods manufacturing.

Asian consumers are set to double their spending on food by 2030, creating a US$8tn market, and delivering the world’s largest food and beverage market, according to a joint report by PWC, Temasek and Rabobank.

This presents an enormous opportunity for food processors and consumer-packaged goods (CPG) companies, which will in turn drive increased investment in capital equipment. Food manufacturers are of course faced with the challenge of doing more with less, compounded by workforce shortages and skills gaps. To thrive in this promising environment, embracing technology innovation becomes a necessity. Adopting smart manufacturing is important for the future of the food and beverage manufacturing industry, as well as for CPG manufacturers more broadly, to ensure products will be available and delivered as ordered, on time and meet quality standards.

The current landscape of CPG manufacturing

The CPG sector in South East Asia is undergoing significant changes, with the Consumer Goods market expected to poised to contribute about $322.70bn in sales in 2024.

CPG manufacturers however often grapple with persistent challenges in aligning with the expanding market. Adapting to the dynamic environment remains a hurdle, requiring strategic adjustments to meet evolving consumer demands and market trends.

A significant issue is the reliance on manual inventory tracking using different software and spreadsheets. This outdated method is time-consuming and prone to errors, reducing operational efficiency. The unpredictable nature of customer demand adds to the challenge. Having too much stock can lead to unsellable, outdated inventory, while having too little can prevent companies from fulfilling customer orders, damaging their reputation and trust.

Additionally, many companies have limited insight into customer demand and how well itis being met, a problem in a competitive market. A related challenge is the lack of awareness about new competitive products, making it hard to position products strategically.

To overcome these challenges, adopting smart manufacturing is essential for the future of food and beverage manufacturing and the CPG sector. Smart manufacturing helps ensure products are available, delivered on time, and meet quality standards.

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