By: Allaster Sibanda - Digital Transformation Consultant, Industrial Software at Schneider Electric 

There is a race to capture the most value from digital and AI.  And whilst many industries are adopting quickly, there are some – often due to the very nature of their business – that are lagging behind. 

According to McKinsey’s report, What it takes to rewire a CPG company to outcompete in digital and AI  many CPG companies struggle with digital adoption, but those that successfully integrate AI and digital tools can see a 6-10% revenue and a 3-5% EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation)  growth over a few years.

At Schneider Electric, we do recognise that in order for CPG organisations to truly embark on a digital journey there needs to be an understanding of company’s unique context, operations and people. It is also this understanding that lends itself to a holistic approach, which emphasises alignment and cohesion between people, process and systems.

Turning uncertainty into opportunity

When we conduct digital assessments in the CPG space, we focus on uncovering current capabilities, identifying gaps, and highlighting opportunities. Many businesses understand that digital transformation is necessary but often lack clarity on where or how to begin. 

Unfortunately, this uncertainty stems from limited budgets, a shortage of digital skills, or simply a lack of a clear roadmap.  And this is where we can help.  Our digital assessments provide a detailed, stepwise strategy tailored to each organisation’s operational pain points. 

The outcome? A clear, actionable digital transformation roadmap, complete with timelines, costs, expected savings, and use cases prioritised by business impact. We also help businesses leverage operational expenditure (OpEx) savings to fund digital initiatives, reducing the reliance on upfront capital investment and increasing project feasibility.

CPG business enablers assessed

1. Asset management

We begin with an in-depth review of asset maintenance strategies and asset information management. It is important to have a clear picture of the age, condition, and performance history of maintainable equipment. This enables businesses to move from reactive maintenance to proactive planning, reducing downtime and financial loss.

2. Operational excellence

Next is simplifying and optimising production processes through digitisation and automation. Access to real-time data allows for timely, data-driven decisions, process adjustments, and performance improvements which, in turn, ensure production runs as efficiently and cost-effectively as possible.

3. Quality and traceability

In the CPG industry, quality is non-negotiable. Products must comply with stringent health and safety regulations. Our assessments evaluate process data visibility, staff competency, and traceability mechanisms. 

With the right data and systems in place, businesses can identify when a process goes out of specification, trace faulty batches, and conduct efficient recalls, therefore, protecting both consumers and brand reputation.

4. Sustainability

At Schneider Electric, we examine the environmental impact of operations, focusing on energy, water, air quality, and gas usage. This is particularly relevant in regions with energy constraint; our approach helps customers reduce emissions, improve energy efficiency, and monitor environmental outputs down to the product level. 

This granular visibility links directly to cost-of-production insights and financial planning.

5. Cybersecurity

Digital transformation inevitably introduces new vulnerabilities. Schneider Electric’s assessments identify weak points in systems, outdated software, and insufficient cybersecurity protocols. We evaluate staff readiness, company policies, and training to ensure systems are protected against growing cyber threats.

6. Change Management

Technology alone cannot drive transformation. Our final enabler focuses on people, ensuring organisations have change champions, training plans, and the right culture to support new digital tools and processes. 

Understanding internal barriers is crucial to ensuring sustained adoption and long-term success.

How we deliver these assessments

1. Site-level interviews

We engage both frontline workers and management. Operational teams help us understand current challenges, while leadership provides insight into strategic goals and investment readiness. This dual perspective allows us to map current operations against desired future states.

2. Data collection and analysis
We gather quantitative data on assets, equipment efficiency, process history, and utility usage. This data enables us to calculate overall equipment effectiveness (OEE), identify bottlenecks, and assess energy or resource inefficiencies. 

The goal isn’t to replace existing systems or equipment, but to advise on best practices and optimise current investment, regardless of brand or provider.

At the end of the assessment, we deliver a comprehensive roadmap that outlines:

• Key operational gaps and opportunities
• A prioritised set of digital use cases.
• Estimated costs and savings.
• Suggested funding mechanisms (e.g., through OpEx savings).
• A clear implementation timeline.