Process Mining for Consumer Goods

Manufacturing & Distribution

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Implementing Process Mining for the consumer goods sector

Food manufacturers, cosmetics producers, fashion and textile companies and many other manufacturers and distributors of consumer goods and durables are under great pressure to optimize their products and processes. Rising raw material costs and energy prices are exerting enormous cost pressure, while bottlenecks in supply chains are jeopardizing product availability. At the same time, customer expectations are also changing: The trend is moving towards personalized products and sustainable packaging, which increases complexity in production. Digitalization and, in particular, the advance of artificial intelligence are forcing companies to adapt their processes, which is proving difficult due to the shortage of skilled workers.

In view of the many challenges, process optimization methods are becoming increasingly important. Process Mining has proven to be particularly intuitive in the consumer goods sector in recent years - the method makes it possible to analyze, visualize and optimize business processes using digital traces in IT systems. By evaluating event logs, Process Mining creates transparency about the actual processes in companies and uncovers inefficiencies and bottlenecks. Consumer goods manufacturers can use Process Mining to optimize processes from product development to production and delivery based on data. In an industry that is under massive pressure to optimize due to fierce competition, Process Mining can make a decisive difference.

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Process Mining for manufacturers & distributors of consumer goods

Process Mining is based on the systematic analysis of digital traces that are created during the execution of business processes in IT systems. These event logs contain various pieces of information about the actual course of processes and depict not only the duration of the process but also the resources involved. Process Mining tools translate this data into intuitive visualizations and thus create an objective, fact-based picture of the actual process flows. The process comprises three approaches: Process Discovery, Conformance Checking and Process Enhancement. While process discovery is used to uncover processes, conformance checking compares these actual processes with defined target processes and identifies deviations. Process enhancement, on the other hand, uses additional process information such as throughput times or costs to identify specific potential for improvement. The technology is now used in a wide variety of different industries - Process Mining is suitable for production, for example, but Process Mining is also used by banks.

In the consumer goods industry, the use of Process Mining is associated with a wide range of benefits. The method creates transparency across cross-departmental processes and uncovers inefficiencies and bottlenecks - whether in product development, production or logistics. The objective findings enable fact-based decision-making and help to shorten throughput times, reduce costs and increase product quality. The use of Process Mining for consumer goods helps companies to continuously optimize processes and hold their own in a highly competitive industry.

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Why Process Mining is important for manufacturers & distributors of consumer goods

Numerous processes in the consumer goods industry are characterized by inefficiencies. For food manufacturers, for example, complicated quality assurance processes and strict hygiene requirements often lead to delays in production. Cosmetics companies struggle with long lead times in product development, and approval processes for new formulations can also drag on. In the textile industry, fluctuating raw material qualities and complicated supply chains pose challenges, while manufacturers of household appliances are confronted with inefficient maintenance and service processes.

Process Mining for consumer goods provides a remedy here: the method analyzes quality control processes and identifies unnecessary waiting times or redundant checks. In the area of product development, delays and coordination loops become visible so that release processes can be streamlined. Process Mining also uncovers optimization potential in warehousing, ranging from inventory optimization to efficient order picking.

Process Mining enables a detailed analysis of the entire value chain. In production planning, it supports the optimization of batch sizes and machine utilization. Various potentials can also be exploited in the manufacturing process thanks to production process analysis - by monitoring parts lists and analyzing throughput times, companies can plan their resources in a differentiated manner and deploy capacities where they are needed.

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Our Process Mining tools display for every step in realtime, where outliers currently occur, to correct them before they establish. Improve lead times, costs and quality. Reduce commercial risks through process optimization.

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Other useful use cases for Process Mining in the consumer goods sector

Process Mining offers companies in the consumer goods industry a wide range of options for optimizing their business processes. The technology enables a holistic analysis of the value chain so that companies can derive various optimization potentials.

Supply chain optimization

The efficient design of international supply chains poses major challenges for consumer goods manufacturers. Process Mining enables an end-to-end view of the supply chain and identifies delays and bottlenecks. The method optimizes ordering processes and contributes to the efficient design of supplier relationships. At the same time, the analysis of throughput times and waiting times reduces buffers and increases delivery reliability.

Increasing packaging efficiency

High material costs and growing sustainability requirements make an increase in packaging optimization a critical success factor. Process Mining takes a holistic view of packaging processes and uncovers waste and inefficient processes. The method enables the optimization of packaging sizes and materials based on actual process data.

Improving the demand forecast

Inaccurate sales forecasts lead to over- or understocking and have a negative impact on profitability. Process Mining links sales data with production and logistics processes so that precise predictions can be made regarding demand. It analyzes sales patterns and identifies factors that have an impact on demand. Data is integrated in real time, which refines forecasts and adapts them to market changes. Process Mining for consumer goods thus paves the way for demand-oriented production and optimal inventory management.

Market launch

The launch of a new product often drags on in the market, which is problematic given the high competitive pressure and short-lived customer preferences. Process Mining analyzes the entire product development process and identifies delays and unnecessary coordination loops that delay the launch. Optimizations include, for example, the acceleration of release processes, the shortening of development cycles and bottlenecks in communication between departments. The analysis of successful product launches establishes and standardizes best practices, which reduces time-to-market and increases the ability to innovate.

Customer feedback

Systematic customer feedback analysis is critical for manufacturers of consumer goods. Process Mining links customer feedback with internal processes and enables faster responses to quality problems. The technology analyzes complaint patterns and identifies their causes in the value chain.

Pricing strategy

In a market with low margins and high competition, pricing is of central importance. Process Mining enables pricing strategy optimization by tracking price changes and their impact on sales and margin in real time. The technology enables the identification of optimal price points by analyzing sales data and competitive information. By integrating cost information, price floors can be determined precisely - for more profitable pricing strategies and higher margins.

Distribution channels

The integration of different sales channels poses major challenges for consumer goods manufacturers. Process Mining creates transparency about channel performance and customer behavior in omnichannel sales. For example, conversion rates are identified and order process abandonment is analyzed. The analysis of customer interactions enables the optimal coordination of sales channels. This sales channel integration enables a seamless customer experience across all channels.

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Implementing Process Mining for distributors of consumer goods - with process.science

Would you like to implement Process Mining for the production or distribution of consumer goods? Implementation is particularly easy with process.science's Process Mining solutions. Our Process Mining tools are integrated directly into existing business intelligence platforms such as Microsoft Power BI and Qlik Sense - a complicated standalone solution is not necessary. Integration takes place with minimal effort and without interfering with your existing ERP systems, which eliminates the risk of system failures and does not affect ongoing operations. You don't have to worry about your data either - no information is transferred to process.science. The software can be implemented both on-premise and in common cloud environments such as Microsoft Azure, Amazon Web Services or Google Cloud Services. With process.science, you can gain an insight into your process efficiency in just a few steps.

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