The Food Industry is rapidly changing due to its volatile nature. Leaders & innovators in the food sector weigh in on the key trends driving change toward a better and more sustainable food future. Reading this article, your company will be better prepared for the years ahead if you have a good grasp of these shifts in thinking and best practices.
Here are the top five emerging trends that will have a significant impact on the food sector in the near future, as well as the facts that support them. We'll also look at some of the other ramifications of these developments, as well as how Enterprise Resource Planning (ERP) Solutions are adapting to meet changing demands.
1. Supply Chains Must Become More Resistant
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Future global disruptions were rated as the main threat to the food industry over the next five years, indicating that business leaders understand the gravity of unexpected, dramatic transformations like the COVID- pandemic.
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The transportation delays and shutdowns, which either severely slowed or completely halted operations, demonstrate that the industry needs to be better prepared in the event that another pandemic of this magnitude occurs.
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Businesses will also be looking for ways to have more control over the transportation of their resources and products, as one of the top three risk mitigation objectives is building an Agri-food supply chain. Industry executives are eager to rebuild existing supply chains that are better and stronger than ever before.
2. Businesses are Taking Sustainability Seriously
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Leaders chose sustainability as the most important trend in the food business to focus on in the coming year. This reflects a more serious commitment to environmental stewardship and waste reduction in the sector.
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The second-most-selected answer, putting more focus on sustainability activities, is similarly considered as a risk mitigation approach. This reflects the possible negative effects of excessive waste on profit margins, as well as the growing desire of businesses to actively reduce their operations' environmental implications.
3. Big Data & the Internet of Things (IoT) will be adopted quickly
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Technologies like big data and analytics will have the largest impact on organizations over the next five years. Companies have to use tools like ERP in our industry-specific system for actionable insights.
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Meanwhile, IoT devices such as smart sensors, scales, and thermometers help in data collecting, automating the process, and importing readings into the system in real-time for a current picture of performance.
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Notably, several of today's most talked-about technologies, such as artificial intelligence (AI) and blockchain, were ranked lower on the list of innovations that will have an influence on organizations.
4. Spending on Enterprise Software is Increasing
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It's evident that food and beverage companies are serious about their digital transformations. The average predicted gain was slightly under 8%, demonstrating the importance of investing in a food ERP system or another technology platform.
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While some obstacles to more rapid modernization exist, such as a lack of visibility across operations and a lack of awareness of solutions, overcoming these obstacles and establishing a solid digital foundation is increasingly seen as a necessity for remaining agile, confident, and competitive in the dynamic and fast-paced markets of the food and beverage industry.
5. Consumers' Demand for Traceability & Food Safety are on Rising
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Customers' growing need for openness in food manufacturing operations, as well as increased knowledge of public health concerns, are the factors behind increasing the people’s choice of food safety and traceability as the top risk mitigation priority.
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Recalls may damage a company's bottom line as well as its brand reputation, and numerous high-profile occurrences last year demonstrated how far-reaching the consequences of a recall can be. That’s why, Food and beverage firms are searching for instruments that can provide complete, bidirectional traceability from one end to the other of the supply chain.
With so many concerns to address and increased demands for Sustainability, Traceability & Compliance- not to mention the push to increase profitability- a single cross-functional platform to manage all areas of your food and beverage business's operations is a must.
Therefore, an industry-specific ERP solution is crucial for preparedness & empowerment. Even if you already have such a system in place, it's important to evaluate its fit with your needs and examine how your company could achieve greater outcomes with more specialized features and its integrations with other cutting-edge technologies.
