How PZ Cussons is driving digital manufacturing with AI and just-in-time production

During a visit to PZ Cussons‘ Agecroft site in Greater Manchester, The Manufacturer spoke with Chief Supply Chain Officer, Steve Noble, about the company’s digital manufacturing journey, AI ambitions, just-in-time operations and long-term sustainability strategy.

Manufacturing household brands at Agecroft

Carex, the UK’s number one hand wash, Original Source’s brightly coloured and invigoratingly scented shower gels, Imperial Leather’s iconic foaming bubble bath and, more recently, the Childs Farm range for babies and children. These are just some of the household names manufactured by PZ Cussons at its Agecroft site near Greater Manchester.

The business was founded by two Georges, Paterson and Zochonis, in Sierra Leone in 1884, trading under Paterson Zochonis (PZ). “The separate Cussons company was originally started by Thomas Cussons in 1909, above his father’s chemist shop, and much later, the two companies joined together in 1975,” explained Steve Noble, Chief Supply Chain Officer & Executive Committee Member at PZ Cussons.

“With our head office in Manchester and our factory in Salford, we currently have around 2,000 employees in total around the group. Our operations have expanded and we now have a major presence in Nigeria, Kenya, Ghana, Indonesia, Australia and, in the US, we have a partnership with The Emerson Group for St.Tropez and Childs Farm.

Meeting demand for personalised products

Keeping up with the wants, needs and demands of the market is vital for a consumer goods business, and as Steve highlighted: “The biggest trend we’re currently seeing is customisation. Consumers no longer want the same product in the same packaging every time. They’re looking for offerings that are more personalised and tailored to their individual needs.”

In turn, this means the marketing and R&D teams at PZ Cussons are constantly striving to meet the variable needs of consumers. “Within our manufacturing operations we have to be flexible and adapt so we’re able to deliver what our customers need,” he added.

How just-in-time manufacturing works at Agecroft

The disruption and subsequent supply chain vulnerabilities exposed so starkly by the COVID-19 pandemic saw many manufacturers shift from streamlined just-in time production models, to a more pragmatic just-in-case strategy. This was predominantly to mitigate against any further unforeseen challenges and to ensure on-site inventory levels could guarantee continued production if supply chain routes once again became bottlenecked or ground to a halt.

However, PZ Cussons has remained a committed just-in-time manufacturer. This does mean that the business has a small window for conversion. “Every four hours, empty bottles and packaging arrive on-site, so finished products must be dispatched promptly to maintain capacity and keep production flowing,” explained Steve.

From raw materials to automated production lines

The business holds all its major materials on-site and has a fully automated system that takes those raw materials and mixes them into the bulk product. “This is the formula which is found in our shower gels, handwash and other similar products,” he said.

The empty bottles are then filled on automated lines, with robots deployed on palletising and getting the end product ready for shipment.

“At the end of the line we hold about four hours’ worth of stock, meaning everything operates on a tight schedule and has to be processed on time. This makes us extremely efficient,” added Steve.

From automation to digital manufacturing

The Agecroft site in Salford has always been automated however, it has now turned its attention to digitising the factory.

Putting real-time data into the hands of frontline teams

The more the business can integrate data feeds and pass that information down to its factory line leaders, the more autonomy the business will have to run its lines effectively. “Our current focus is driving digitisation throughout the factory and putting the right information into the hands of frontline workers, so they can make informed decisions and help drive the business forward,” explained Steve.

He added that one of the biggest challenges on the digitisation journey has been around education. As a business that’s been on the same site for 20 years, PZ has built up a loyal workforce where many have records of long service. “Many of the staff here are used to seeing automation within the factory, but as we bring in new digitisation, we need to make sure people are on board,” he said.

Balancing upskilling with new talent

The business has had to consider a balancing act of how it can bring its current workforce up to speed with newer digital technologies while also encouraging new talent – perhaps digital natives who already possess the required skillset – to also join the business. “At PZ Cussons we have an apprentice programme that allows us to bring new people into the business with a new level of digital knowledge,” added Steve.

Unlike smaller businesses, big household name manufacturers struggle less with talent, and PZ Cussons considers itself one of the lucky ones.

“We have our manufacturing capabilities and longevity in Salford on our side. For us, it’s vital that the people coming into the business have the right skills, which means we are selective about who we bring in as apprentices,” said Steve.

The business recently hired an operations manager who has built a strong relationship with Manchester Metropolitan University which has helped the business bring in a new level of digital technology. “His experience with 3D printing and other diverse areas has opened our eyes as to how we run the site here and how we could begin to do things differently,” he explained.

Investing in robotics and new production capabilities

One key investment for the Agecroft site has been keeping each machine up to specification. “This is a 20 year old, automated factory. If we do not keep the robots and production lines functioning as required we will not be able to operate on the efficiencies that make us competitive in the markets,” explained Steve. To this end the company is about to embark on a major robotic upgrade to its key production lines.

PZ Cussons is focusing on introducing new technologies, including digital printing and advanced digital systems. While the site has traditionally specialised in producing thin liquid products, the business is expanding its capabilities to manufacture emulsions and other formulations, broadening the range of products it can offer to its customers.

Using AI for predictive maintenance and factory planning

In terms of AI, the business currently uses predictive maintenance; tracking its machinery using condition-based monitoring. “This allows us to see any deviation in performance which we are able to act upon immediately, carry out preventative maintenance and avoid downtime,” said Steve.

The business is also turning its attention to supply chain planning, with AI playing a central role in improving demand forecasting. “The goal is to create more efficient factory planning, driving higher overall equipment effectiveness (OEE) and increasing production capacity,” he added.

Building flexibility into the supply chain

By nature, a just-in-time site which is operating to tight timescales has to be quite rigid in its operations. Therefore, over the last ten years PZ Cussons has focused on incorporating flexibility and resilience at its site. “To do this, we’ve localised the business. We still have our operations globally, but we focused ourselves here on the UK market. This allows us to adapt quickly to changes – from global pandemics to the cost of living crisis,” said Steve.

The business is able to directly communicate with its marketing and commercial teams to react to the current customer climate, allowing the factory floor to react and perform in near real time.

Driving sustainability at a carbon neutral factory

The Agecroft site is carbon neutral, primarily focusing on Scope 1 and 2 emissions. “We are looking at what changes we can make: minimising our waste and energy usage, and putting systems in place to track this,” said Steve.

Increasing recycled PET and reducing virgin plastic

The business is also increasing the amount of recycled PET (rPET) used in products such as Original Source and Carex, helping to reduce virgin plastic use while supporting a more circular recycling system.

Helping shape the future of sustainable packaging

PZ Cussons recently joined the UK Packaging Pact to help shape the future of sustainable packaging. By becoming involved early, the business aims to play an active role in driving industry-wide change.

“The group will do a great job of improving recyclability across the industry and strengthening recycling infrastructure,” said Steve. “Being part of the UK Packaging Pact allows us to stay at the cutting edge of developments which is why we wanted to join from the very beginning.”

What’s next for PZ Cussons?

Looking at the next five years, PZ Cussons wants to continue to drive and grow its most loved brands, locally. “In the UK it’s Carex, in Nigeria its Stella, in Indonesia it’s Cousins Baby and in Australia, it’s Morning Fresh, each unique to their own markets,” explained Steve.

It’s also his belief that the continued success of the business will come from its three major pillars: locally-loved brands, go-to-market capabilities and manufacturing scale.

“The business has incredible commercial teams who forge our relationships with customers and strive to understand our consumers in key markets. That’s on top of the Agecroft site having great scale and production capabilities, adding to our competitive advantage.” he said. “When you combine those three pillars, it gives us real strength to win.”

Further reading

• Made Smarter – Digital transformation support for manufacturers — Resources and support for manufacturers adopting digital technologies, automation and data-driven systems.
• The Digital Catapult – AI and digital innovation insights — Insights into emerging digital technologies and how AI can be developed and applied across industry.
• WRAP – Sustainable packaging and circular economy resources — Guidance and research covering recycled materials, packaging, waste reduction and the transition to a circular economy.