Top Digital Transformation Challenges for Consumer Goods Brands and How to Solve Them

Margins are tight. Customer expectations are higher than ever. Regulation rarely stands still. Yet many consumer goods organisations are still running on systems built for a very different operating model.

That gap explains why digital transformation in the consumer goods industry is no longer a long term ambition. It has become a day to day requirement. Even so, for many leadership teams it still feels like a high risk move. Cost, disruption and loss of control tend to dominate the conversation.

Most C-suite leaders, ecommerce teams and product owners are aligned on the end goal. Stronger visibility. Faster decision making. Systems that support growth rather than constrain it. The real difficulty is getting there without unsettling the business or undermining confidence along the way.

Here, we look at the most common digital transformation challenges facing consumer goods brands today and how to address them with a clear, structured and practical approach.

1. Legacy systems are slowing down progress

Over time, many organisations have added layers of customisations, bolt on tools, and manual processes to their core systems. What once solved a short term need now creates long term complexity. These legacy environments are hard to change, expensive to maintain, and risky to upgrade.

The impact is felt across the business. Decision-making slows because data is fragmented. Costs rise as teams rely on workarounds. Compliance becomes harder to manage as processes drift away from standard controls.

Addressing this starts with simplification. Rationalising applications, removing unnecessary customisations and moving towards a clean-core ERP approach allows organisations to modernise without carrying forward old complexity. The result is a more stable platform that supports change rather than resisting it.

2. Data silos limiting commercial insight

Consumer goods organisations generate vast amounts of data, but value is lost when that data sits in silos. Sales, marketing, ecommerce, supply chain, and finance teams often work from different numbers, leading to conflicting reports and hesitation at the leadership level.

When data cannot be trusted, forecasts become unreliable, and opportunities are missed. Personalisation efforts struggle, and leaders delay decisions while teams reconcile figures.

A more effective approach focuses on creating a single source of truth with clear data ownership. When analytics are embedded into everyday workflows, insight becomes part of how the business operates, not a separate exercise. Consistent, accessible data enables faster and more confident decision making.

3. Change management is being underestimated

Technology projects rarely fail because of the software itself. They fail when people are not brought along. In many transformations, communication around change starts too late and training is compressed to meet delivery deadlines.

The result is predictable. Users revert to old ways of working. Manual processes remain. The expected benefits take longer to show. Over time, this erodes confidence in the projects, even when the underlying technology is doing what it should.

Successful transformation treats change as a core workstream, not a side project. Involving users early, being clear about what is changing and why along with a delivery that is broken into manageable phases enables teams to adapt with confidence. When people feel supported, adoption improves and risk is reduced.

4. Compliance and regulatory demands are increasing in complexity

Consumer goods organisations operate in a regulatory environment that continues to evolve. Tax rules, reporting standards, and sustainability requirements differ across markets and change frequently. Managing this manually increases risk and effort.

Concerns around fines, audit exposure and reputational impact are common, particularly where controls depend on spreadsheets or offline checks. Compliance should be built into transformation from the outset, not added on afterwards.

Embedding controls directly into core systems makes compliance more consistent and easier to manage. Automating reporting and standardising processes, while allowing for local requirements, helps organisations remain compliant without slowing day to day operations.

5. Ecommerce integration remains a challenge

Ecommerce has grown rapidly but in many organisations it still sits outside the core ERP landscape. This disconnect causes issues with pricing consistency, inventory visibility and fulfilment accuracy.

Customers feel the impact through delays and errors. Internally, teams rely on manual order handling and work around stock imbalances. Over time, this increases operational effort and puts revenue at risk.

Integrating ecommerce with end to end processes such as order to cash and supply chain planning provides greater control and scalability. When digital channels are aligned with core operations, organisations can support growth without adding complexity.

6. Cost pressures are shaping transformation decisions

Cost is often the primary concern for senior decision makers. Large, multi-year projects can feel high risk, particularly when returns are uncertain and day to day operations still need to run.

In practice, delaying transformation often increases cost rather than containing it. Ageing systems are expensive to maintain, and inefficiencies build up over time.

A phased, outcome-led approach helps manage both risk and investment. By prioritising early, measurable improvements and avoiding unnecessary bespoke solutions, organisations can build momentum and demonstrate value sooner.

7. Sustainability is now a core consideration

Sustainability has moved firmly onto the board agenda. Regulators, customers and investors expect transparent, credible reporting. Yet many organisations still depend on manual processes and inconsistent data to meet these expectations.

When data cannot be trusted, sustainability reporting becomes time-consuming and carries risk. It also limits the organisation’s ability to act on insight related to waste, emissions and sourcing.

Embedding sustainability data into core systems changes this dynamic. Using consistent metrics and recognised frameworks allows sustainability to become part of day-to-day operations rather than a separate reporting exercise.

Moving forward with confidence

Digital transformation in the consumer goods industry is no longer optional. The organisations that succeed are those that simplify complexity, strengthen their foundations, and act with purpose.

The challenges are real. Legacy systems, compliance pressures, and cost constraints will not disappear. But standing still creates a greater risk. Delay leads to inefficiency, higher costs, and missed opportunities to grow sustainably.

The strongest projects start with clarity. When transformation is broken into manageable steps, teams stay engaged, risk remains controlled, and value becomes visible sooner.

If you are planning the next phase of your digital journey, focus on what will make the business stronger tomorrow. Build a foundation that supports growth and change without disrupting what works today.

The decisions you make now will shape how confidently your organisation operates in the years ahead.