As consumer demand becomes increasingly dynamic, CPG brands are struggling to bring new innovative products to market at speed. This is because the way brands make things is stuck in the 18th, 19th, 20th century, despite the technological innovations occurring across distribution, marketing, and sales.
Atelier is pioneering a new way of making things: Composable Manufacturing. This manufacturing method benefits CPG brands, consumers, manufacturers, and other supply chain partners.
Under centralised management, physical manufacturing resources from across the globe are aggregated into a cloud network and virtualised as shoppable manufacturing components that can be customised in real-time. This is executed by leveraging graph database technology, semantic enrichment, digital twins, and video game dynamics — technologies that have not yet been applied to the CPG manufacturing space.
Drive innovation in product development by harnessing transparent, traceable, and accurate manufacturing data from previously disparate datasets.
Unlock emergent efficiencies that foster antifragile supply chains, price competitiveness, and rapid development.
Enhance creative outcomes for product development at a reduced cost, increasing the competitive advantage for brands of all sizes.
Understand the true cost of NPD with exhaustive visibility into primary, secondary, and tertiary supply chains regarding financial, ecological, human, and ethical costs.
Improve consumer trust and loyalty through accurate and transparent ESG reporting and reliable product availability.
Atelier’s method of composable manufacturing will be a transformative force within CPG and beyond, finally aligning the product development and manufacturing landscape with today’s brands, consumers, investors, and manufacturers.
In an ever evolving and competitive market, consumer packaged goods (CPG) brands are constantly seeking innovative ways to differentiate their products, create unique value propositions for their customers, and overcome challenges with supply chains and inventory management. Simultaneously, consumer needs are becoming increasingly dynamic.
A 2022 survey by Accenture found that:
But whilst brands are able to efficiently identify changes in their consumers’ needs, their ability to respond to those changes with the necessary speed is limited to internal strategies like marketing or distribution. New product development, mass production, and supply chain management remains a linear and rigid process susceptible to bottlenecks and long lead times, limiting brands’ ability to bring new products to market at the pace set by dynamic consumer demand.
This method will revolutionise the way consumer brands develop, produce, and deliver unique products, enabling them to cater to the dynamic needs of today’s consumers.
Traditionally, CPG manufacturing consists of consecutive stages: product development, procurement of materials, production, packaging, and distribution. Each of these stages consist of a number of functions — from engineering and design to manufacturing and logistics — that are typically autonomous and geographically distributed around the world. So, to bring a single product to market requires the orchestration of fragmented manufacturing resources with heterogeneous priorities, capacities, and methods of communication.
End-to-end supply chains are fragile and unreliable, yet a critical component of a consumer business’ strategy. Several studies have shown that a company’s share price drops by 7-9% on average following the announcement of a supply chain disruption.
Composable manufacturing, on the other hand, virtualises physical manufacturing resources into a unified cloud network with centralised management that can be accessed by customers through a single interface. Customers receive access to manufacturing capabilities including components that can be combined in unique ways to compose novel product offerings. Built with a semantic approach to data through, knowledge graphs, digital twins, and data-driven design, composable manufacturing enables the rapid and efficient assembly of diverse product elements, allowing brands to:
This white paper discusses the core components of composable manufacturing, illustrating how Atelier is effectively implementing it in CPG beauty manufacturing and how this concept can be applied to the manufacture of all multi-component products . The key benefits that CPG beauty brands can reap from this innovative approach will be thoroughly examined, including enhanced product customisation, accelerated time-to-market, reduced environmental impact, and improved cost efficiency.
Section 1: Harnessing Manufacturing, Supply Chain, and Sustainability Data for Transformative Product Development.
It is widely accepted that visibility is one of the key challenges in building resilient supply chains, with the majority of a company’s knowledge of their supply chain extending as far as their first-tier supplier. And, because of the way many raw materials are produced and traded, many of these first-tier suppliers lack accurate provenance data on their inputs. This weakens the authority of sustainability reporting methods, such as life cycle assessments (LCAs) and Greenhouse Gas Protocols (GHGP). These tools are effective for reassuring consumers and investors, but they are not accurate representations of a products’ environmental impact. Sustainability and eco-friendliness:
Composable manufacturing surfaces and aggregates previously disparate manufacturing datasets, producing the same degree of supply chain visibility as vertically integrated supply chains formed by only a small number of large businesses, like Zara or Shein. This increases competitive advantage amongst consumer brands by making strategic data accessible at a lower cost.
1.1 The impact of Manufacturing, Supply Chain, and Sustainability data visibility
Making end-to-end manufacturing and supply chain data visible for brands and manufacturers can significantly enhance product development processes, driving innovation and differentiation. Valuable insights drawn from this data can produce:
1.2 Composable Manufacturing and Data-Driven Transformation
Composable manufacturing catalyses data-driven transformation, integrating manufacturing, supply chain, and sustainability data into the product development process. Composable manufacturing facilitates data-driven innovation in the following areas:
1.3 Capitalising on Data Synergies
The combination of exhaustive data in manufacturing, supply chain, and sustainability domains creates synergies that can unlock new creative outcomes for CPG brands and their product development efforts. These data sources can be integrated and analysed to produce novel product outcomes that drive innovation, such as:
Section 2: Leveraging Manufacturing Data Networks for Emergent Efficiencies
The comprehensive mapping of manufacturing capability data and its dynamic, real-time representation as a network can yield emergent efficiencies for CPG brands. In a networked model, customers can access distributed manufacturing capabilities that have been virtualised under a unified data structure. Product components from multiple manufacturing resources can be configured in an optimised manner through a single portal, increasing the strategic advantage for brands during new product development, mass production, and scalability. This is particularly powerful for independent CPG brands in beauty, as scalability remains a challenge despite strong consumer interest.
As information exchange is critical to the efficient collaboration between manufacturing resources, manufacturing networks enable the instantaneous transaction of complex and granular information between all nodes within a network. Currently, these exchanges take place through message-based transactions that are limited by language barriers, time zones, government regulations (i.e., censorship), and channels (i.e., email or social messaging apps). Within a networked model, accurate and detailed manufacturing data can be exchanged anywhere, anytime.
2.1 Building Antifragile Supply Chains
In an increasingly interconnected and unpredictable global market, the ability to create antifragile supply chains is essential for business resilience. Mapping manufacturing capability to data networks can build antifragile supply chains by facilitating:
2.2 Enhancing Price Competitiveness
Achieving price competitiveness is crucial for CPG brands seeking to differentiate themselves in a crowded market. The dynamic access to manufacturing capability data networks can lead to more competitive pricing strategies by:
2.3 Accelerating Development and Manufacturing Efficiencies
The real-time access to manufacturing capability data networks can also drive rapid development and manufacturing efficiencies, contributing to more robust CPG businesses. Data networks can streamline product development and manufacturing processes through:
Section 3: Leveraging Knowledge Graphs and Semantic Enrichment for Manufacturing Data Interoperability and Integration
One of the most significant challenges in networked manufacturing resources is the interoperability and integration of disparate manufacturing data. Stakeholder misalignment and the lack of interoperability standards have been previously credited with the failure of the large-scale implementation of networked manufacturing. However, under centralised management, manufacturing resources can be integrated and made interoperable as stakeholders are aligned. The knowledge graph presents an ideal solution for managing these complex, disparate manufacturing data sources because it is designed to capture the intricate relationships between vast amounts of data across environments.
3.1 Advantages of knowledge graphs for Manufacturing Data
The unique capabilities of knowledge graphs make them particularly well-suited for addressing the challenges of integrating and managing disparate manufacturing data sources. The key benefits of this technology include:
3.2 Solving Interoperability Challenges
The knowledge graph can effectively address the interoperability challenges that arise when working with disparate manufacturing data sources. Graph databases can facilitate seamless data integration and interoperability, such as:
3.3 Impacts of the knowledge graph for Brands
Overcoming interoperability and integration challenges through graph database technologies enables brands of all sizes to navigate complex, disparate datasets, unlocking valuable insights to drive product innovation. Some of the advantages for brands include:
Section 4: Enhancing Creative Outcomes in Product Development through Composable and Shoppable Digital Twins
A key to revolutionising the NPD and manufacturing process via composable manufacturing is ensuring that customers are able to access this networked manufacturing data with ease, sophistication, and accuracy. This is achieved by making the physical output of these networked manufacturing resources composable and shoppable; not only are they virtualised as data points within a network, but these resources are then visualised as shoppable digital twins. Customers see exact 3D representations of the manufacturing resources within the network without needing the physical product manufactured first, enabling real time customisation. This reduces development times, minimises errors in sampling, reduces waste during NPD, and improves brand user NPS.
4.1 Transforming Product Development with Digital Twins for Creative Outcomes
Utilising digital twins enables a more efficient and accurate product development process. These benefits include:
4.2 The Power of Composability and Shopability
A comprehensive network of manufacturing resources that are composable and shoppable enable CPG brands to develop complex and unique products from the same network. This output offers brands billions of product combinations without spending the resources traditionally required to develop unique products. The advantages of this customer experience include:
4.3 Impact on Product Development, Sampling, and Brand User NPS
The flow on effect for the aforementioned advantages positively impacts product development times, sampling errors, and brand user NPS. These impacts include:
Section 5: Composing the Future - Atelier’s Comprehensive Mapping of the Beauty Manufacturing Landscape
As Atelier moves forward, its ambitious goal of mapping the entire beauty manufacturing landscape, including primary, secondary, and tertiary supply chains, will provide users with an exhaustive understanding of the true cost of their products. This section of the white paper will paint a vivid picture of this future and discuss its potential impact on the world, as well as the massive financial outcomes and network effects it will create for Atelier.
5.1: A Source of Truth for the Beauty Industry
In this envisioned future, Atelier will provide users with unparalleled insights into the financial, ecological, human, and ethical costs of the products they create. This transparency will empower consumers with a source of truth regarding the products they use, enabling them to make more informed purchasing decisions. The implications of this comprehensive visibility include:
5.2: Global Impact and the Path to a Better World
By offering exhaustive visibility into the beauty manufacturing landscape, Atelier has the potential to reshape the industry into a more functional and sustainable organism, leading to a better world. The wide-ranging impact of this future includes:
5.3: Financial Outcomes, Defensibility, and Network Effects
As Atelier realises its vision of mapping the entire beauty manufacturing landscape, the platform will experience significant financial growth, strong defensibility, and powerful network effects. The key drivers of this success include:
The future of Atelier promises a more transparent, sustainable, and ethical beauty industry that empowers consumers and fosters responsible practices. By achieving its ambitious vision, Atelier will not only create a better world but also secure its position as a market leader, experiencing substantial financial success and powerful network effects that will drive its continued growth and innovation.
Conclusion: Unleashing the Power of Composable Manufacturing for a Sustainable and Innovative Future
Throughout this white paper, we have explored the potential of composable manufacturing to revolutionise product development and manufacturing for CPG brands. By leveraging cutting-edge technologies, data-driven insights, and a comprehensive understanding of the manufacturing landscape, composable manufacturing will unlock new creative outcomes, streamline product development, and pave the way for a more sustainable and ethical industry.
In doing so, we have examined the key components that enable this transformation, including:
By embracing composable manufacturing, CPG brands can position themselves at the forefront of industry innovation, creating differentiated products that appeal to increasingly conscious and discerning consumers with dynamic needs. Adopting composable manufacturing will contribute to a more sustainable and ethical beauty industry, promoting responsible practices that minimise environmental impact, ensure fair labour conditions, and empower consumers with transparent information about the products they use. As such, composable manufacturing represents a transformative force within the CPG beauty sector and beyond, promising to reshape the product development landscape and create a brighter, more sustainable future for brands, consumers, and those involved in supply chains.