Digital Transformation Journey in Food & Beverage, and Consumer Packaged Goods Manufacturing

In the ever-evolving landscape of food & beverage (F&B), and consumer packaged goods (CPG) manufacturing, embracing digitalization has become imperative for achieving corporate goals. This blog delves into key insights in the journey of digital transformation within the in Food & Beverage (F&B), and Consumer Packaged Goods (CPG) Manufacturing industry.

Digital transformation can be defined as the evolutionary process of integrating digital technologies and solutions across the people, process, and technology within an organization to make the business smarter, more flexible, and more profitable.

As F&B and CPG manufacturers grapple with challenges like environmental, social, and governance (ESG) concerns, and labor shortages, digitization becomes an ever-pressing need. At a high-level, many senior leaders, including those in the C-Suite, recognize that digitalization can be a tool to overcome these challenges, however, they can sometimes struggle with the value equation of such efforts.

For most organizations, the primary objective of digital transformation is to attain enterprise visibility to manufacturing data, enabling businesses to swiftly adapt for optimizations and efficiencies ultimately improving profitability. Therefore, it is crucial to have a clear understanding of the desired outcomes before embarking on this journey.

Developing and maintaining a collaborative culture is key ingredient in any digital transformation efforts. It acts as a catalyst for employee engagement, retention, and empowerment, contributing to the success, or failure, of any digital transformation efforts. Key tactics include continuous training for operators, promoting a culture of shared learning, and employing collaboration tools like handheld devices and software such as Microsoft Teams for seamless communication across all levels. Empowering employees involves enabling them to build their solutions, supported by software tools.

Effective communication from change management leaders is crucial to foster a collaborative environment to avoid operational silos and point solutions that only address specific challenges in isolation. Therefore, the change management team at each site plays a critical role in delivering the desired outcomes.

At the onset, a small team is recommended to determine the value of the digital transformation project initially. However, this journey requires both bottom-up and top-down cross-functional engagement, alignment, and support. For example, getting to consensus on standard operating procedures, starting with defining standard work, is essential for success. Continuous improvement should be emphasized, involving every person in the organization as an owner of specific processes or equipment. Therefore cross-functional teams will play a pivotal role in implementing plant-level change management.

Communication across multiple sites can ensure a transparent flow of learnings and results. Enabling this transparent flow of learning and results supports upskilling of all levels, from shop floor workers to managers, which enables a successful digital transformation journey. Mentorship and implementing a buddy system for new employees can also drive employee engagement and knowledge sharing.

Operators' knowledge is invaluable for driving the efficiency gains identified through the digital transformation journey. Establish baselines early, and legacy knowledge should be collected and preserved for the success of digital transformation projects.

Success hinges on showcasing operational gains resulting from changes. Ownership and decision-making power should be advocated for hourly employees, supervisors, and leaders alike. Also recognize the importance of recognizing the staff efforts through the transformation, emphasizing the importance of rewards beyond salaries.

Historically, companies hesitated to embrace cloud technologies and discouraged mobile phone usage on the plant floor due to security concerns. However, the shift towards confidence in hyperscaler companies and the adoption of technologies like 5G demonstrate the manufacturing industry's acknowledgment of the potential benefits of these advancements.

Furthermore, cloud-based software solutions such as Proficy Smart Factory – Cloud MES can support faster turnaround for security patches without reduction in performance due to updates — all managed at scale. Authorized employees can securely access data whenever and wherever they need to make informed decisions about production operations, enabling enhanced data-driven decision making from a single factory through a multinational organization with factories around the globe.

“Unlike an on-prem solution, a cloud-native solution will scale and descale as you need it to support your organization’s operations, so you don’t have to spend more than necessary to secure high performance.” -Colin Henry, Sr. Product Manager of Proficy Smart Factory Cloud, Proficy Software & Solutions at GE Vernova

Furthermore, it is imperative to have real-time tracking of metrics, both quantitative and qualitative. The ability to implement machine learning and artificial intelligence with industrial analytics solutions such as Proficy CSense, enables organizations to make faster decisions based on data for increased efficiency and productivity.

In Conclusion
The digital transformation journey in the F&B and CPG manufacturing industry is complex but holds the promise of enhanced efficiency, collaboration, and profitability. Embracing the digital future is not just a leap of faith; it's a strategic move toward staying competitive in a rapidly evolving market.