MARKET WATCH
5
Predictions to drive transformation
Phil Lewis
Unforeseen disruptions experienced in 2020 prompted F&B producers to future proof their businesses. Focusing on expediting time-to-market; food quality and safety; supply chain resilience and the creation of omni-channel models will place companies in the strongest position to embrace and capitalise on future opportunities. By Phil Lewis.
O
perational excellence is driving
the need to become more efficient and
supply chain outside of the four walls of the
successful outcomes across many
reduce food, water, and energy waste, only
factory and uses data from farm to fork to
of these initiatives, as firms look to
a limited amount of food processors claim
increase quality and productivity, reduce
optimise resource efficiency, whether people,
using IoT, with a staggering amount have no
food waste and minimise food safety risks.
energy or water. Precision is becoming
plans whatsoever.
In turn, this can turn challenges into a
imperative coupled to technologies such as
These findings could be explained by
competitive advantage.
IoT critical in minimising waste while
the fact that until now, we have seen some
maximising output.
experiments in isolated domains, such as
recognition and machine learning (ML) to
Other applications are using image
image recognition in inspection equipment, IoT
dynamically determine the quality of received
WHAT DOES THE FUTURE LOOK LIKE FOR FOOD PRODUCERS?
devices in farming or in production lines. Yet
ingredients and using that to determine the
there appear to be few examples of IoT being
purchase price. Something which would have
Prediction 1: Cloud… There’s little doubt
used widely to drive operations. For example,
a big impact on food safety would be the use
that cloud is set for huge growth as a means
production machines have sensors to capture
of IoT sensors to check whether equipment is
of creating robustness and agility. Frankly,
a lot of data like temperatures and other
clean, with the results triggering a cleaning
there is no other way when you look at what
quality parameters, but all data remains in
order to avoid contamination risks, which
the business is asking for. It’s crucial in fully
the machine and is lost and meaningless after
brings us on to the next big trend 2021 is likely
capturing data from IoT devices and the
the production run.
to see. Prediction 5: Transparency to the
extended supply chain. There’s little point in
Product recalls are one of the greatest
having temperature readings in a structured
financial risks food and beverage companies
consumer… Consumers want more in-depth
ERP database that sits safely within the
face. Yet research shows that no firms claim
information about products to help
company’s firewalls.
to be completely digital for track and trace
drive their purchasing decisions. It’s
and quality management. The good news is
important to demonstrate the efforts being
kind of technology at hand as a service
that in 2021 more food producers will have
generated into sustainability credentials to
instead of having to do a lengthy IT project
paved the way by having a digital platform in
consumers. We are seeing a growing number
to implement something that will not scale.
place to capture data and connect this to the
of retailers putting pressure on producers to
Cloud also represents an opportunity to
transactions in their ERP system.
provide information.
A big advantage of cloud is having this
implement changes faster opposed to having
Prediction 4: Data driven… A digital
to do technical migration projects which often
platform makes it possible to use IoT in a
be expanded to more product categories and
require teams to take a step backwards before
more holistic way. The first benefit of this
used to differentiate producers and prove the
being able to move forwards.
is that faster and more targeted recalls
sustainability of the supply chain. This means
will be possible, with the ability to identify
extended control of the supply chain from
producing companies have seen a huge
and analyse the root cause of the issue
farm to fork and identifying whether the crop
shift in demand, with home deliveries
immediately. The second is that data can be
is GMO-free, what kind of crop protection has
taking precedence over restaurants and
used to drive decisions and create a smarter
been applied, and other factors. •
supermarkets. This trend is unlikely to snap
company. A good example is having insight
back to pre-pandemic levels as consumers
into the inbound overseas shipments of crops,
have simply become more used to ordering
not only with regards to their estimated time
their food online. Being omni-channel makes
of arrival, but also the storage conditions
the business less vulnerable and able to take a
during transportation so that quality and
larger piece of the market.
use before dates can be predicted more
Prediction 2: Omni-channel… Food
Prediction 3: Industry 4.0 tech… Despite
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MARCH 2021 | FOOD REVIEW
accurately. This extends the control of the
In 2021 and beyond we will see that this will
About the author: Phil Lewis is Infor VP Solution Consulting for the EMEA.
Infor - www.infor.com.
