Midsize consumer packaged goods (CPG) companies are under pressure to innovate faster, scale efficiently, and meet evolving customer demands. But how can they stay competitive in a volatile market?
End-to-end integration in CPG is emerging as the key enabler of growth. By connecting data, processes, and technologies across the organization, companies can gain real-time visibility, streamline operations, and unlock new revenue opportunities.
A recent Oxford Economics survey of 175 CPG executives reveals that businesses prioritizing integration are outperforming their peers—and preparing for a tech-driven future.
Top Business Priorities for Midsize CPG Companies
According to the survey:
- 88% of CPG executives reported revenue growth over the past three years.
- The top five business priorities for the next two years are:
- Increasing market share (40%)
- Innovating products and services (39%)
- Attracting new customers (37%)
- Growing revenue (33%)
- Expanding into new markets (31%)
These goals signal a clear need for speed, scale, and differentiation. But achieving them requires tackling persistent supply chain fragility and operational inefficiencies head-on.
The Role of End-to-End Integration in CPG Growth
End-to-end integration in CPG connects critical functions—from supply chain and manufacturing to marketing and sales—into one seamless digital ecosystem. This connectivity enables:
- Real-time insights for faster decision-making
- Early identification of risks and disruptions
- Increased agility across the value chain
Surveyed executives say the top business areas that would benefit from improved data visibility are:
- Logistics and transportation
- Manufacturing and supply chain
- Channel and retail partner operations
As one CFO explained:
“We are entering new areas where we can increase our customer base.”
That level of expansion requires integrated tools that ensure products are delivered on time, data flows freely, and decisions are backed by evidence.
Digital Technologies Powering CPG Transformation
To succeed, CPG companies are investing in technologies that support integration and transformation:
- Supply chain and demand planning solutions
- Digital commerce platforms
- Sustainability tracking software
- Cloud ERP systems
Cloud ERP, in particular, supports agility and integration by offering:
- Optimized operations
- Enhanced customer experiences
- Improved process innovation
73% of surveyed companies have adopted cloud technologies—and many are preparing for the next big leap: AI.
Why AI and End-to-End Integration Go Hand-in-Hand
Artificial intelligence (AI) will reshape the CPG landscape. While only 13% of companies have deployed AI, nearly 46% plan to invest within the next year.
AI’s expected benefits in CPG include:
- More personalized products and services (81%)
- Smarter marketing and sales strategies (71%)
- Reduced manual tasks through automation
But to maximize AI’s impact, end-to-end integration in CPG is essential. Integrated systems enable AI tools to access the clean, connected data they need to generate value.
One Chief Sustainability Officer noted:
“We are personalizing the purchasing experience with data analytics and artificial intelligence.”
Sustainability: A Strategic Priority, Not a Side Project
While only 11% of companies cited sustainability as a top short-term priority, more than 50% plan to adopt sustainability software within the next 12 months.
Current and planned initiatives include:
- ESG data collection and reporting
- End-to-end supply chain transparency
- Emissions tracking
- Circular economy product design
Companies that lead on sustainability can differentiate themselves and better comply with rising global regulations.
As one procurement leader said:
“We will embrace sustainable manufacturing practices to meet growing consumer demand for eco-friendly products.”
3 Strategic Steps for Future-Ready CPG Companies
To stay competitive, midsize CPG businesses should take the following steps:
- Invest in End-to-End Integration in CPG
Break down data silos and unify processes across departments to gain real-time visibility and make faster, smarter decisions.
- Prepare for AI-Driven Innovation
Modernize IT infrastructure to support AI capabilities that drive personalization, automation, and predictive insights.
- Reprioritize Sustainability
Embed sustainability into core operations to meet consumer expectations, comply with regulations, and create long-term value.
Conclusion: Integration Is the Engine of CPG Growth
Growth in today’s CPG sector isn’t about doing more—it’s about working smarter. By embracing end-to-end integration in CPG, companies can unlock operational efficiency, enable innovation, and build a future-ready foundation.
Cloud technologies, AI, and sustainability are reshaping the industry—and integrated companies will be the ones to lead it.
Ready to take the next step? Contact your SAP partner today to learn how digital integration can fuel your business strategy.
