Five ways emerging tech can help food and beverage manufacturers

The food and beverage manufacturing industry stands on the brink of a technological revolution, with innovations reshaping the way we develop and produce products. With the combination of artificial intelligence (AI) and automation, these advancements promise to enhance efficiency, support sustainable practices, and drive quality and food safety. However, as manufacturers embrace these technologies, they must also navigate the complex landscape of regulatory compliance and cybersecurity, ensuring that operations remain uninterrupted and that sensitive data is protected.

Today’s consumers are increasingly conscious of their environmental footprint and demand transparency from manufacturers. Here are five innovations companies are using to meet expectations and to stay ahead of the competition, while safeguarding their systems against potential threats.

1. Cybersecurity becoming an increasingly critical priority

In the rapidly evolving landscape of global politics and technology, cybersecurity is becoming a top priority for food and beverage businesses. The importance of robust cybersecurity measures is underscored by several attacks across various industries, including food and beverage, which have disrupted essential supply chains and highlighted vulnerabilities. The food and agriculture sector ranks as the seventh most targeted industry in the US, behind sectors like manufacturing and financial services. These incidents highlight the necessity for companies to prioritise cybersecurity, not only to prevent attacks, but also to ensure swift recovery and resilience in their operations after one has taken place. But despite its critical importance, cybersecurity is not always the primary focus for an industry that has traditionally focused on machinery and operational technology.

The critical nature of food supply to society has prompted the implementation of regulations aimed at bolstering cybersecurity measures, such as the Farm and Food Cybersecurity Act of 2024 in the US. For leading cloud service providers, security also remains a paramount concern. Their platforms underpin the growth strategies of numerous food and beverage brands, hosting everything from data platforms to enterprise resource planning (ERP) solutions.

As businesses navigate the complexities of today’s digital landscape, cybersecurity must be an integral part of their strategic agenda. By fostering a culture of resilience and leveraging advanced cloud technologies, organisations can better protect themselves against evolving threats. The ability to adapt quickly and maintain operational continuity will be key to thriving in this increasingly interconnected world.

2. Navigating the complex world of regulations

Navigating regulations has become more challenging than ever before. Companies are facing a deluge of new rules and standards, particularly in food safety, environmental sustainability and data privacy. As these regulations become more intricate, businesses need to develop robust strategies to ensure compliance and mitigate risks.

Environmental regulations, such as the European Union’s Corporate Sustainability Reporting Directive (CSRD), require companies to disclose extensive data on their environmental and social impacts. This involves reporting on emissions, water usage and other sustainability metrics. The burden of compliance is significant, adding administrative complexity and requiring companies to gather and analyse vast amounts of data. For many organisations, this means implementing processes to collect and validate information from diverse sources, including suppliers and external databases.

Data privacy regulations add another layer of complexity, with different regions enforcing distinct rules. While the General Data Protection Regulation (GDPR) sets the standard in Europe, other areas, such as the US, have their own state-specific laws. This regional variability complicates compliance efforts concerning customer data, as companies must navigate a patchwork of regulations that can differ significantly in scope and implementation timelines.

Central to navigating these regulatory challenges is the effective management of data. Businesses must not only collect accurate data but also ensure its proper validation and reporting. Advanced cloud technology solutions, including data analytics, play a crucial role in helping companies manage these tasks efficiently. By leveraging the right tools, organisations can gain insights into their operations and, at the same time, make informed decisions that align with regulatory requirements as they continue to evolve.

3. The strategic imperative of reducing waste

Reducing waste in the form of resources, time and materials is another key area of focus for companies striving to enhance efficiency and become more sustainable. However, addressing it across the entire supply chain is often seen as being too complex. Companies with the vision and ability to execute, with the objective to reduce waste from farm to table, are positioned to become more profitable and competitive.

Reducing waste can be achieved using smart technologies like process mining, enterprise process automation and AI. These technologies will drive the next leap in waste reduction by being able to identify bottlenecks, increase process efficiency by automating routine tasks, and optimise resource use. Combined, these technologies represent a significant opportunity to generate productivity gains.

The leaders who embrace these changes are likely to pull ahead, setting new benchmarks for productivity and resource management.

4. Enhancing decision-making with AI

In an age where data has become an increasingly valuable currency, leveraging AI to enhance decision-making processes is an opportunity that cannot be ignored. AI technologies, ranging from machine learning to generative AI, are transforming how businesses understand data and make informed decisions.

Why? Because AI can process vast amounts of information in real time, providing insights that would be impossible to achieve manually. For example, AI-driven yield optimisation has revolutionised production processes in the dairy industry. Where companies once relied on ad hoc manual spreadsheet analysis of a few parameters, AI now evaluates dozens of factors in real time, enabling continuous process improvements and increased yields. On the sales side, AI is being employed for product and price recommendations, enhancing customer engagement and driving revenue. Generative AI, a more recent development, opens new possibilities in creative fields for product descriptions based on ingredient information and quick translations into multiple languages to support multinational marketing efforts.

A common misconception is that AI is only accessible to large corporations with vast resources. This is not the case. AI technologies are increasingly available to mid-sized and smaller organisations. Modern AI platforms are designed to be user-friendly, allowing non-technical users to harness the power of AI without extensive training. This democratisation of AI means that businesses of all sizes can benefit from enhanced decision-making capabilities, driving innovation and growth.

AI is redefining how businesses approach decision-making, offering unprecedented opportunities. By leveraging AI, food and beverage companies can gain deeper insights and stay ahead in a rapidly changing world.

5. Evaluating TCO and simplifying the application landscape

In the pursuit of technological transformation, evaluating the total cost of ownership (TCO) and simplifying the application landscape are critical steps for businesses. As companies navigate the complexities of digital transformation, understanding these concepts can lead to more efficient operations and a clearer path to innovation.

It is often the case that as businesses grow, their application landscape can become cluttered with disparate systems. Various departments purchase software solutions independently, leading to a complex and difficult-to-manage IT environment. Simplifying this landscape is essential for reducing TCO and improving operational efficiency.

Consolidating to a holistic cloud-based platform with a comprehensive range of integrated applications drives several compelling benefits. Cloud solutions offer improved scalability, redundancy and security. Additionally, the cloud facilitates continuous innovation, allowing companies to rapidly deploy new capabilities and stay competitive in a dynamic market.

In conclusion, evaluating TCO and simplifying the application landscape are essential components of successful digital transformation. By leveraging cloud technology and focusing on strategic integration, businesses can enhance efficiency, reduce costs and foster a culture of continuous innovation.