Keywords: Consumer Packaged Goods, CPG, Formulation & Recipe Management, Packaging Design, SIMATIC IT, Brand Management.
Siemens PLM recently briefed ARC Advisory Group on its solutions for the consumer packaged goods (CPG) industry. In an industry where consumers often participate in product innovation, CPG product suppliers and retail companies alike face some unique challenges. Innovation is a necessity for brand name manufacturers as they continue to penetrate emerging markets with a wide range of social and cultural norms. The many different products and product variations required to effectively target these markets also adds to the complexity of the new product development process for global brands in the CPG industry.
According to company representatives, Siemens PLM's goal is to assuage this complex process and provide solutions for specific areas within the CPG product lifecycle. To this end, Siemens PLM offers an end-to-end solution designed to guide the manufacturing process from idea to shelf. These solutions extend from the concept and packaging design phase via the company's PLM and other engineering design products, down to the manufacturing floor with solutions provided by Siemens' SIMATIC IT manufacturing execution system (MES) solution set.
In this manner, Siemens can help CPG companies leverage their data to collaborate more effectively to help ensure regulatory compliance, enable and manage innovation, and streamline brand planning.
The CPG Industry Presents Unique Challenges for Manufacturers and for PLM
All manufacturers have been forced to devise new solutions and strategies to meet the demands and opportunities of the global economy. This is particularly relevant in the CPG industry, which can capitalize on the tremendous opportunities unlocked by globalization and the emergence of middle class consumers in China, India, and other developing nations. However, CPG companies now face challenges as unique and diverse as its new customer base. While unprecedented global interconnectedness and growth in developing nations have created a new class of consumers for CPG manufacturers to target, they simply cannot apply a "cookie-cutter" approach to global marketing and product development. Ingredients and packaging must be flexible and adaptable to meet the preferences of specific regions and demographics, while at the same time accommodate distinct national or even local regulatory compliance issues.
Facing these new requirements, the CPG industry relies more than ever on PLM solutions, with industry leaders seeing the technology as an important driver of innovation that will enable companies to manage business growth and stay ahead of competition. In this era of the smart consumer equipped with product information and customer reviews, any lapse in brand integrity could be magnified many times over, compromising the brand. To avoid this, all levels of the enterprise must be able to communicate effectively and collaborate. According to company representatives, Siemens PLM recognizes this challenge, providing an organized and accessible platform to house product information so manufacturers can meet customer requirements.
One Integrated Platform Supports the CPG Product Lifecycle
Siemens provides one integrated platform for solutions that support the CPG industry and believes this model can most effectively enable CPG companies to deliver their respective brands. Siemens' end-to-end solution is designed to enable CPG companies manage the product development process from concept to product launch. This includes formulation and recipe management, package design, labeling and artwork management, testing, regulatory and compliance management, quality assurance, specification management, and brand management.
Siemens Solution Set Supports CPG Product Lifecycle
Additionally, Siemens' integrated CPG platform provides critical solutions to help ensure brand integrity, brand innovation and execution, and consistent brand compliance and sustainability. Users can access and manage all these solution domains on the Teamcenter collaborative PLM platform. This also provides supplier relationship management, merchandise line planning and allocation, and other modules like integrated workflow and reporting and analytics.
Siemens PLM designed its integrated CPG platform to provide complete product information from formulation and ingredients, CAD models for container and package design, test and simulation models, specifications, design and technical briefs, and packaging assembly design, to "voice of the consumer." The CPG integrated platform involves several Siemens PLM brands such as NX for CAD design and product test, Teamcenter for the collaborative PLM platform, and Tecnomatix for manufacturing and virtual production systems design and simulation. Additionally, Siemens SIMATIC IT provides solutions for production execution and specification management and is fully integrated into the CPG development process.
The CPG industry has unique requirements, which are constantly evolving as technology advances and differentiated products continue to target increasingly smaller audiences. PLM solution are becoming crucial for the success of product development and delivery, serving as a platform for innovation across all domains of the CPG lifecycle. Siemens PLM provides a solution to manage innovation and effectively integrate the development design, and manufacture of consumer products and all of the information associated with the end-to-end process. For PLM, it is essential that the voice of the customer echoes throughout a targeted solution set for CPG, as consumers continue to push the cutting edge in this dynamic market.
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