{"id":1350,"date":"2026-04-22T07:13:45","date_gmt":"2026-04-22T11:13:45","guid":{"rendered":"https:\/\/blogs.sw.siemens.com\/digital-logistics\/?p=1350"},"modified":"2026-04-22T07:13:50","modified_gmt":"2026-04-22T11:13:50","slug":"always-a-product-on-the-shelf-engineering-resilience-in-cpg-supply-chains","status":"publish","type":"post","link":"https:\/\/blogs.sw.siemens.com\/digital-logistics\/2026\/04\/22\/always-a-product-on-the-shelf-engineering-resilience-in-cpg-supply-chains\/","title":{"rendered":"Always a product on the shelf: Engineering resilience in CPG supply chains"},"content":{"rendered":"\n

At Hannover Messe 2026, Volker Albrecht, CEO of Siemens Digital Logistics<\/a>, addressed a challenge that defines today\u2019s consumer packaged goods (CPG) industry: keeping the promise that every product is always available. It sounds simple. In reality, it has become one of the most complex operational challenges companies face.<\/p>\n\n\n\n

In a world shaped by geopolitical uncertainty, climate disruption and rapidly shifting consumer demand, product availability is no longer just an operational metric \u2013 it is a strategic differentiator. As Albrecht emphasized, the cost of failure is significant. Billions are lost each year due to out-of-stocks, while supply chain disruptions continue to erode profitability over time. The issue is not episodic; it is systemic.<\/p>\n\n\n\n

From disruption to control<\/strong><\/h2>\n\n\n\n

The modern supply chain is no longer a linear process \u2013 it is a dynamic, interconnected network. Every node, from raw material sourcing to final delivery, introduces dependencies and potential risks. A single disruption can cascade across continents, ultimately resulting in an empty shelf thousands of kilometers away.<\/p>\n\n\n\n

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To illustrate this complexity, Albrecht pointed to the global journey of soybeans. From farms in Brazil \u2013 the partner country of Hannover Messe in 2026 \u2013 to processing facilities and retail shelves worldwide, the path involves multiple transport modes, geographies and stakeholders. Each step introduces variability. Managing this complexity is not simply about logistics \u2013 it is about gaining control over an increasingly fragmented system.<\/p>\n\n\n\n

This is where connected supply chains become essential. By integrating logistics, production planning and real-time data visibility, companies can shift from reactive problem-solving to proactive orchestration.<\/p>\n<\/div>

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Turning visibility into performance<\/strong><\/h2>\n\n\n\n

Albrecht highlighted several real-world examples demonstrating how end-to-end transparency translates into measurable business impact.<\/p>\n\n\n\n

In the case of PepsiCo<\/a>, increasing demand for Gatorade created pressure across a complex network of factories, mixing centers and distribution routes. Rather than addressing bottlenecks in isolation, Siemens enabled a holistic view of the entire production network. By leveraging digital twin technology and advanced planning capabilities with Supply Chain Suite<\/a> from Siemens Digital Logistics, PepsiCo increased production capacity by over 20% while reducing capital expenditure by up to 15%. Planning cycles that once took months were compressed into days.<\/p>\n\n\n\n

A similar approach was applied with the Radeberger Gruppe<\/a> in Germany. By building a digital twin of the supply network based on the Supply Chain Suite, Siemens helped optimize both production and logistics across 11 factories. The result was a double-digit increase in available capacity, alongside improved delivery efficiency and optimized return flows for reusable bottles \u2013 demonstrating how transparency enables smarter decision-making across the entire value chain.<\/p>\n\n\n\n

For BSH Hausger\u00e4te<\/a>, the focus was on scalability. Across dozens of factories, a reusable digital model of the logistics network enabled faster scenario analysis, reducing simulation time by more than 50%. This allowed the company to respond more quickly to changing conditions while continuously improving operational efficiency.<\/p>\n\n\n\n

Connecting logistics end-to-end<\/strong><\/h2>\n\n\n\n

Beyond production, logistics plays a critical role in ensuring product availability. Thanakorn Vegetable Oil Products<\/a> in Thailand faced challenges with fragmented, manual logistics processes across inbound and outbound operations. By implementing a connected, data-driven approach based on the logistics platform AX4<\/a>, Siemens helped increase operational efficiency by 15%, reduce freight costs by 25% and improve visibility by 61%.<\/p>\n\n\n\n

These results highlight a key principle: visibility alone is not enough. It must be actionable. When logistics, production and planning are connected, companies can make faster, more informed decisions \u2013 and execute them with confidence.<\/p>\n\n\n

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