By Stephen Tagg, Global Application Sales Manager Software, Markem-Imaje
For all the progress made around Industry 4.0, many manufacturers still face a very practical problem: the factory is not as connected as it appears.
Enterprise systems have become more advanced. Production planning, procurement, warehousing and quality systems are increasingly digital. Investment in automation, AI and analytics continues to grow. Grand View Research, for example, estimates that the US smart manufacturing market will grow at a CAGR of 13.1% from 2025 to 2030.
Yet in many FMCG manufacturing sites, the connection between information technology (IT) and operational technology (OT) remains incomplete. McKinsey research shows that while most industrial companies are implementing digital and analytics solutions, only about one in five report high levels of success, with fragmented data landscapes and complex legacy infrastructure among the main barriers to building robust, secure architecture across IT and OT systems.
Deloitte points to a similar gap at the factory level: although 80% of surveyed US manufacturers believed smart factories would transform production and become a main driver of competition, only 5% had fully converted at least one factory to “smart” status, leaving 95% yet to fully unlock the value of connecting the factory floor to ERP systems and real-time data strategy.
That leaves a significant gap between the digital vision and operational reality. The question for manufacturers is not whether they have invested in technology. It is whether information can move reliably between business systems, production equipment and the people running the line.
Industry 4.0 has a blind spot
When manufacturers discuss digital transformation, the focus often falls on robotics, AI, predictive maintenance and advanced analytics. These are important areas, but they all depend on one thing: accurate, connected, real-time data.
This is where many factories still struggle.
Production orders may sit in an Enterprise Resource Planning (ERP) system. Manufacturing data may be managed through a Manufacturing Execution System (MES). Inventory and warehousing may be controlled through a Warehouse Management System (WMS). But the final stages of production — where products are coded, labelled, verified and prepared for distribution — often still involve manual steps, isolated systems or disconnected equipment.
Operators may still be selecting messages manually, entering batch numbers, changing date codes or transferring information between systems. These tasks may seem small, but across multiple shifts, product changeovers, lines and sites, they create risk.
An incorrect code or label can lead to rework, downtime, rejected goods, compliance issues or even a product recall. According to the UK Food Hygiene Certificate Registry’s 2026 Facts Report, allergen-related labelling errors remain the leading cause of UK food recalls, accounting for 23% of events in 2024. It also makes traceability harder, because the business may not have a reliable, real-time view of what was produced, when, where and under which conditions.
In an environment where manufacturers are under pressure to improve productivity, reduce waste, strengthen traceability and respond to labour shortages, disconnected data is not a minor inconvenience. It is a barrier to performance.
Automation without integration creates faster silos
Many FMCG producers have invested heavily in automation to increase throughput and reduce manual handling. But automation alone does not guarantee a smarter factory.
A line can be fast and still be disconnected. A machine can be automated and still rely on manual data entry. In fact, manual entry is responsible for approximately 20% of production mistakes1, including incorrect packaging and printing errors. A factory can have advanced enterprise software and still lack reliable communication with equipment on the production floor.
Without integration, manufacturers risk creating faster silos: equipment that performs efficiently in isolation, but does not share enough information to support wider operational intelligence.
The cost of those silos can be high. It appears in duplicated data entry, avoidable coding errors, longer changeovers, production stoppages, poor visibility and slower decision-making. It also places additional pressure on operators, who are expected to make the right decision quickly, often while switching between systems that were not designed to work together.
For manufacturers operating across multiple sites, the challenge becomes even greater.
Maintaining consistent coding standards, approved messages, production data and verification processes across factories is difficult if every line or site operates differently.
The final metres of production matter
The end of the production line is sometimes treated as a practical necessity rather than a strategic source of data. That view is becoming outdated.
Every batch number, date code, lot code, item number and pallet label carries operational value. When that information is connected to enterprise systems, it becomes part of the factory’s data backbone. It can support traceability, compliance, inventory accuracy, quality control and faster response to issues.
This is particularly important in FMCG, where high product volumes, short production runs and frequent changeovers increase the risk of error. It is also increasingly relevant as manufacturers prepare for evolving retailer, regulatory and traceability requirements, including initiatives such as GS1 Sunrise 2027. The point, however, is broader than any single initiative. Manufacturers need connected production environments because the market now demands faster, more transparent and more resilient operations.
The opportunity is not simply to introduce another software platform. It is to create a connected flow of information between enterprise systems, production equipment and operators.
In practical terms, this means production data should be pulled automatically from approved sources. Operators should not need to re-enter information that already exists elsewhere in the business. Coding and labelling systems should receive the correct job data in real time. Vision and verification systems should confirm that the right information has been applied before products leave the line. Production events should be reported back to business systems, creating a clear and accurate operational record.
This is what IT/OT convergence looks like when it becomes operational rather than theoretical.
What good IT/OT convergence looks like
Best-practice IT/OT integration is not about connecting everything for the sake of it. It is about connecting the right systems in ways that reduce risk and improve performance.
For FMCG manufacturers, this typically means linking ERP, MES and WMS environments with the equipment and software used in packaging, coding, labelling and verification. It means creating a single, reliable source of production information. It means reducing manual intervention wherever possible. And it means giving operators simple, accurate information at the point of use.
When done well, the benefits are measurable.
Connected packaging automation can reduce the cost of manual data entry and message data maintenance by up to 90%. It can cut changeover duration by 50%, saving hundreds of hours each year. It can support 100% compliant finished products and reduce coding errors, helping manufacturers cut up to 15% from total running costs1.
These are not abstract digital transformation benefits. They are operational improvements that production teams can recognise immediately: less rework, fewer mistakes, faster changeovers, better traceability and greater confidence that the right product has the right information at the right time.
One example of this approach is Markem-Imaje’s CoLOS® 7 software platform, which has been designed to connect coding and packaging operations with enterprise systems.
Rather than treating coding as a standalone task, CoLOS® enables real-time communication between ERP, MES and WMS environments and the equipment involved in packaging operations. It supports multi-site, multi-line and multi-printer environments from a single platform, helping manufacturers centralise message design, automate data exchange and reduce manual intervention.
According to Markem-Imaje, CoLOS® 7 can support up to a 20% reduction in manual coding errors, real-time ERP, MES and WMS synchronisation and 100% inline verification through its Vision and Verification module.
The platform illustrates a wider industry point: one of the most overlooked layers of digital manufacturing is the coding and identification infrastructure at the end of the line.
Customer examples show the practical value of this approach. Paola Peronne, Product Manager at Italian food manufacturer Fiorentini, has described how “everything is governed by CoLOS® Software, which integrates perfectly with all the systems.”
Similarly, Nicola Berghem, Head of Maintenance at Italian wine producer Mezzacorona, has highlighted the role of accurate labelling in traceability, stating: “The correct label on the correct pallet ensures perfect and safe traceability.” These examples demonstrate how connected production systems can reduce errors, improve compliance and create a more reliable operational record.
Closing the gap
The future of manufacturing will not be defined only by more machines, more automation or more software. It will be defined by how well information moves across the factory.
For many manufacturers, the biggest opportunity is not to start again, but to connect what they already have: enterprise systems, production equipment, coding infrastructure, verification tools and operators.
That is where the 80% gap matters. If most manufacturers have not yet fully connected enterprise systems with the factory floor, then significant value remains untapped.
Factories that close this gap will gain more than efficiency. They will gain better visibility, stronger traceability, fewer errors, faster decision-making and a more resilient production environment.
For years, coding and labelling were seen as the final steps in production.
Increasingly, they are becoming the first step in creating trustworthy manufacturing data.
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