Weekly Business Insights 03/25/2024
11 Technologies Driving the Smart Factory Revolution. IBM Collaborates with SAP To Develop New AI Solutions for the Consumer Packaged Goods and Retail Industries. AI in Packaging Market Outlook from 2024 to 2034.
11 Technologies Driving the Smart Factory Revolution
The digital revolution in CPG manufacturing is happening now. In today's fast-paced business landscape, consumer packaged goods (CPG) brands are constantly striving to increase worker productivity and manufacturing flexibility to keep up with consumer demands, as well as to stay ahead of the competition.
One way brands are finding success is by automating manual processes and then layering a variety of software applications on top that can contextualize data to gain visibility into what’s happening on the plant floor. As more CPGs tap into these digital technologies, they are transforming traditional facilities into smart plants: efficient, data-driven centers of manufacturing excellence.
CPGs have varieties of digital factory software tools at their fingertips. These serve as a big-picture tool that integrates continuous optimization and fosters a connected worker culture of operational excellence.
IBM Collaborates with SAP To Develop New AI Solutions for the Consumer Packaged Goods and Retail Industries
IBM today announced its collaboration with SAP to develop solutions to help clients in the consumer packaged goods and retail industries enhance their supply chain, finance operations, sales and services using generative AI.
With a shared legacy of technology expertise and the completed work of embedding IBM watsonx, an enterprise-ready AI and data platform and AI assistants, into SAP solutions, IBM is working with SAP to create new generative and traditional AI solutions to be focused on addressing the complexities of the direct store delivery business process and product portfolio management. IBM Consulting and SAP are already working with CPG clients worldwide to gather detailed requirements to create secured and scalable AI solutions that can be integrated with the SAP Direct Distribution® solution.
The goal of the new solutions to be developed will be to help CPG companies, wholesale distributors and retailers more efficiently manage store-level assortments, improve product distribution and drive incremental revenue.
"Global and regional consumer industry organizations must manage various commerce applications and need advanced insights to provide proactive recommendations that help improve operations and meet customer expectations "With SAP, we are looking to build on the long-standing work of incorporating AI into SAP solutions that can help enterprise clients achieve further business value." IBM Consulting plans to build these solutions on SAP Business Technology Platform® (SAP BTP) and will integrate watsonx through APIs. Warehouse planners, frontline delivery associates and client representatives can have an enriched user experience by using watsonx Assistant to create chatbots using IBM's conversational search capabilities.
AI in Packaging Market Outlook from 2024 to 2034
The global AI in packaging market is estimated to be worth US$ 1,790.8 million in 2024.The artificial intelligence (AI) in packaging market is expected to reach US$23,415.2 million by 2034. It is projected to surge at a CAGR of 29.3% in the forecast period 2024 to 2034.
The AI in packaging industry is expected to see continued growth in the adoption of AI due to its significant value and benefits, Increasing demand for smart and connected packaging and a growing emphasis on sustainability presents opportunities for AI-driven innovations, Integrating AI with computer vision and machine learning is expected to enhance the accuracy and efficiency of inspection processes in packaging industry, AI systems analyze images and detect defects in packaging materials, ensuring only high-quality products reach the market, AI algorithms create personalized packaging designs by analyzing consumer preferences, market trends, and product data, recommending materials and structures that align with branding and customer needs, AI can enhance packaging solutions like active monitoring systems, temperature-sensitive labels, and interactive experiences, improving product safety, traceability, and consumer engagement.
AI-powered vision technologies are increasingly used in packaging operations for quality control and inspection, ensuring higher standards and reducing waste by quickly identifying flaws or discrepancies, AI algorithms are being utilized to enhance packaging design for various purposes, such as product protection, material consumption reduction, and shelf appeal improvement, by analyzing consumer preferences, environmental variables, and material attributes, The rise of direct-to-consumer and e-commerce has led to a surge in the demand for customized packaging, with AI-driven solutions enabling tailored designs, messaging, and branding for specific customer segments.