23 July 2020
According to research, 27% of companies feel that digital transformation is a matter of survival.
Digital transformation is often forced onto industries, thanks to trends that are shaping the market. The food industry is no different.
However, to stay ahead of the game, it’s essential that food industry companies don’t wait for digital transformation to take them by surprise. To position for successful adoption, it’s important that companies are aware of what trends are driving digital transformation within the sector, and what form DX is taking.
If your business is in the food and beverage industry, you must stay informed. No company wants to fall behind or implement technologies that are already out of date.
Keep reading to find out how recent trends are driving innovation and digital transformation within the F&B sector.
1. Mid supply chain needs for transparency increases the need for AI and IoT adoption
Consumers have tired of disingenuous practices in the food industry, such as misleading labeling, a need for heightened transparency practices has arisen.
This has filtered up the supply chain, affecting how producers label and produce their products. IoT and AI are pivotal technologies that upper and midchain suppliers can use to prove origin, handling, and ingredients.
One example of this is smart labels. Smart labels leverage IoT technology to track and monitor products through the supply chain.
2. AI to optimize food supply chains
According to reports, roughly 40% of food waste occurs within food supply chains. Apart from being wasteful, this high rate of product loss is extremely costly for B2B food companies.
This is another area where AI is seeing increasing opportunities for adoption. Through the use of AI-assisted analysis, food industry companies can analyze vast amounts of current data. This allows them to gauge market demand.
This on-the-ground leveraging of data is in sharp contrast to previous analytics methods. These strategies typically involved commissioned studies.
Nowadays, new trends in the food industry are increasingly born almost overnight. Because of this, previous models of trend analysis have become far too slow.
Without real-time data analysis, companies in the upper levels of food supply chains are not able to respond to trends in a timely manner. This causes unnecessary waste and inefficiencies through the supply chain. It also holds a significant opportunity cost.
There are many reasons why market research is important. In the food and beverage industry, market research is essential for reducing food waste. And with that, lost revenue.
3. Food quality management
To remain competitive, B2B companies within the food supply chain are being forced to focus on food quality management practices.
Food quality has become an increasing consumer focus. Naturally, this demand has influenced all levels of the food supply chain. From production to transportation and warehousing, companies operating in food supply chains have to ensure quality standards are being adhered to and exceeded.
For many food types, even if only one segment of the supply chain is lacking, this can compromise quality and safety.
Food safety is of paramount importance, as spoiled food can result in loss of life if ingested.
Foods safety and quality have always been important areas. However, consumer awareness and impact is increasing.
This has caused both upper and mid-level food supply chain companies to experience increased pressure around the preservation of food quality and safety.
One of the ways this pressure is sparking digital transformation is through the application of sensor technology. Sensor technology can monitor conditions such as temperature, and supply analytics and data. This feedback can be used to correct these conditions during storage and transportation.
4. Logistics and warehousing automation
Predictions show that blue-collar labor shortages are forecast to only but increase. Thanks to this, the food industry is turning towards automation.
It becomes increasingly difficult to fill transportation and warehousing vacancies. The outcome of this is predicted to be that food industry companies will implement an array of automation technologies. These include solutions such as driverless trucks and autonomous mobile warehouse robotics.
5. Expanding data sets spur demand for machine learning
As today’s companies begin to rely increasingly on data, they also need the ability to process and clean it.
Large companies in the food production industry are collecting escalating amounts of data at a rapid rate. Managing, storing, and working with this data can be both costly and involved. Machine learning is something that can assist companies in interpreting their data in meaningful ways.
For data sets that are large and dynamic, machine learning offers the ideal analyzing solution.
6. Digital marketing adoption is skyrocketing
Digital marketing has firmly established itself as a mainstay marketing method. Predictions state that digital marketing spending will rise to 49% of all global ad spending by 2021.
Some of the key trends taking place are a rise in SEO implementation and social media leveraging. Ad targeting and personalization are also becoming a growing trend.
Sales intelligence and prospecting solutions are becoming a mainstay. These applications are allowing businesses to optimize their marketing processes.
Does your food industry business need a boost?
Digital transformation is taking place right across the food supply chain. From AI to smart warehousing solutions in the food production industry, the F&B sector is teching up in response to the times.
Are you in the food industry and feel that your business needs a boost? If so, now is the time to leverage some of the digital transformation opportunities in the sector.
Not sure where to start? Begin by calling us. We offer consulting services for powering your business with data analysis, insight, and agility.
During this period of economic turbulence, it is doubly important that you capitalize on the resources you have. This will allow you to position your enterprise at the forefront of its sector. Data is one of the most valuable resources that a business can access, so don’t delay in putting yours to use.