Why Digital Transformation in the Food & Beverage Industry Is Imperative
The food and beverage industry underwent rapid changes during and after the covid lockdown to cope up with the increasing demand and supply bottlenecks. The preference of the new-age customers have gradually shifted towards health-first foods as the fitness awareness took centre-stage after the global pandemic.
The food industry is no stranger to innovation. From molecular gastronomy to plant-based meats, chefs and entrepreneurs are always pushing boundaries to create new taste experiences. However, the digital transformation of the food industry has been more gradual, with many businesses still relying on traditional practices.
Food companies have embraced digital transformation in a more aggressive manner compared to the rest of the industry not only to tackle covid disruption but also to meet rapidly growing demand. Digital technology can transform the food and beverage industry by improving operational efficiency, enhancing customer experience, and increasing transparency. It can automate processes, optimize supply chain management, and provide data insights for better decision-making.
Digital technology also allows for personalized marketing and convenient ordering and delivery options. Here are some of the top trends in digital transformation that are shaping up the new food industry business.
Cloud: Food companies were one of the first to migrate to cloud in order to be more efficient and meet the growing business demand.
AI: Food companies used artificial intelligence to understand the customer behaviour and requirements better and also helped them reduce food wastage.
Omnichannel: Food companies understood the importance of online and social media presence to engage with customers directly and there was a shift from restaurants to retail customers.
Sustainability: The modern-day customers were eager to know more about the quality of food they buy and consume, this forced the food companies to offer supply chain visibility using IoT.
Why Is Digital Transformation Critical for Success in the Food Industry?
More Accurate and Immediate Data Collection
The underlying principle of digital transformation is to replace outdated analog processes with fully integrated and digital processes. Modern Food industry ERP platforms integrated with smart sensors, scales, meters and thermometers that automatically monitored product quality throughout the lifecycle and thus reducing errors and avoiding data loss.
Safer Products and Procedures
The 2020 pandemic has forced both the customers and the regulators to focus more on safety and hygiene of foods they consume. With digital transformation the food industry is able to automatically track expiration management, perform automated compliance checks, isolate and fast track recall process, etc. This has ensured not only safe food products but also safer employee working conditions.
Greater Efficiency and Profitability
The primary reason why any business opt for digital transformation is to increase their efficiency and operating margins. Digital transformation provided the much needed information for the food companies that helped them identify areas that they can improve on.
The importance of digital technology in the food and beverage industry extends to all parts of the production process.
Equipment supply and integration
Digital transformation enabled the food industry to integrate and fully connect with their manufacturing process and equipment. This helped them to reduce downtime, increase productivity and optimize asset usage.
Food processing
Digital transformation in food processing not only increases efficiency but also reduces energy usage and improves overall product quality which is the need of the hour.
Filling and packaging
When the food industry connected and automated production and packaging assembly lines using software, their efficiency went up and the production cost got reduced. Digital transformation in the packaging process also enabled them to scale up quickly. Read more
