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Digital transformation in the food industry

Published Mar 20, 2023
Orange juice bottles on a conveyor belt in a production hall.

Summary: Digital Transformation has fundamentally reshaped the food industry. Especially since the COVID-19 pandemic, flexible digital processes have become indispensable – enabling location-independent collaboration and stabilizing workflows. They help food companies work efficiently and respond to changing consumer habits such as the rise of online shopping. With effective ERP strategies, businesses can secure and strengthen their position in the food retail sector.

In this article:

Digital Transformation in the food industry

Digital processes have been shaping the food industry for many years. But the topic became truly prominent with the onset of the COVID-19 pandemic. When, almost overnight in 2020, remote work became mandatory, supply chains collapsed, and entire workforces were out of action, companies had to react quickly. Only those who were flexible enough to adapt remained operational. The solution lay in digital processes – independent of location and designed to keep workflows running anywhere.

At the same time, consumer habits shifted. More and more people began ordering food online. Buying behavior has steadily moved toward digital channels in recent years. While traditional retail always involved intermediaries, purchases now often happen directly between manufacturer and consumer. As a result, providers are increasingly expected to build engaging online shops that meet new customer expectations.

Sustainability as a driver of change

Another strong trend in the food sector is sustainability. Consumers are questioning the origins of products and placing higher value on clean, transparent ingredients. For food manufacturers, this creates pressure to bring innovative products to market that reflect these values. Waiting too long is risky – competitors will seize the opportunity.

Digital technologies provide insights and data that were previously unavailable. Companies use them as a foundation to modernize production environments and optimize collaboration between people, machines, and processes.

Digital Transformation brings deep change to nearly every area of the food industry. But one aspect stands out: efficient and transparent batch management. In a sector that is constantly evolving, end-to-end product traceability is not only a regulatory requirement – it is also a decisive competitive advantage.

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Security with indulgence: This creates traceability!

Traceability is the key to safe food production. Those who fail to guarantee it risk recalls, which can cause reputational damage and penalties. Our tips reveal how you can avoid these risks.

The food industry will stay digital

Given the speed at which circumstances change, the question inevitably arises: will the new mechanisms remain, or will they soon be a thing of the past? The answer: while trends in the food industry evolve – and no one can predict what will be “in” tomorrow – the digital structures established in recent years are here to stay.

Why? Because they are solid, embedded, and indispensable. One example: during the lockdown, countless retailers launched online shops that were – and still are – heavily used. Shutting them down again? Out of the question. After all, the competition never sleeps. Those who think ahead invest in a well-designed digital transformation strategy – securing long-term benefits and a future-proof position in the market.

Food industry: key technologies for digital transformation

From small tools to complete software systems – there are many ways to establish digital processes in food companies. At the heart of it all are key technologies. Typical examples include:

Cloud computing

Working in the cloud is an essential part of digital transformation in the food industry. It forms the foundation for innovative technologies such as machine learning and big data. At the same time, it allows companies to access data regardless of location and respond flexibly from anywhere.

Another benefit: scalability. Food companies that rely on cloud computing are not tied to rigid structures. More users today, fewer tomorrow? No problem – the cloud adapts to your needs.


Robotics

Robots provide enormous value in food production. They take over repetitive or hazardous tasks, making everyday work easier for employees. Collaborative robots, or “cobots,” even work hand in hand with people – combining the best of both worlds.

At the same time, food companies can also rely on software robots through robotic process automation (RPA), which automates manual administrative tasks efficiently.


Industry 4.0

More efficient processes, data-driven decision-making, and the ability to anticipate consumer preferences – that’s what Industry 4.0 enables. It supports manufacturing and offers huge potential, especially in industrial-scale food production.

The digital opportunities of Industry 4.0 include:

  • Internet of Things (IoT)
    Everyday objects equipped with intelligent sensors transmit data. This enables companies to quickly identify maintenance needs in food production machinery, gather market insights (for example, when coffee machines send usage data back to the manufacturer), or even reorder milk automatically when the fridge detects an empty shelf.
  • Big Data
    The foundation of IoT is big data. This technology allows food manufacturers to store, filter, process, and analyze large volumes of data. The insights reveal patterns and optimization potential – for example, in production processes.
  • Artificial intelligence (AI)
    Smart algorithms handle tasks that were once only possible for humans. AI is already being used for disease diagnostics, facial recognition, recipe control in food production, and customer interaction through chatbots.
  • 3D printing
    Additive manufacturing makes it possible to create flexible objects layer by layer. The 3D printer applies thin sheets of plastic or metal to build three-dimensional bodies. The food industry is increasingly experimenting with 3D printing. Products such as marzipan and chocolate are already being printed, and development continues with more complex foods such as pizzas.
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Guide to digital success in the food industry

We show you how to identify the processes in your food company that are best suited for Digital Transformation.

The benefits of Digital Transformation in the food industry

1. Increased revenue

With access to more data and a stronger basis for analysis, you can identify current trends in the food industry more effectively. Marketing activities become more targeted, sales strategies hit the mark – the perfect foundation for boosting revenue.

2. High-quality products

Strict quality checks during production can be a huge time drain when manual steps are required. Digital technologies support quality assurance, highlight areas for improvement, and provide security – resulting in products of the highest quality.

3. Full control during recalls

Quality is everything in the food industry. Still, mistakes can happen, and product recalls may be necessary. Frustrating enough – but with digital traceability, the process becomes simple and transparent. You stay in control, with all the information you need at your fingertips.

4. Work from anywhere

If files are stored locally in binders or on laptops, working on the go is nearly impossible. Cloud storage enables online access to all data from anywhere. Present to a customer on short notice, check an invoice, or monitor production progress – all in real time.

5. Less waste

Digital control makes processes simpler, clearer, and above all, more efficient. This creates enormous potential for supply chains and production planning. You can order raw materials just in time without overstocking and align production volumes with actual demand. Especially for fresh goods like baked products, this reduces waste significantly.

6. Happier customers

Developing innovative products is key to long-term customer loyalty. With digital support, you can strengthen research and development, respond to current trends and customer needs, and focus on creative tasks. The result: more satisfied customers.

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The right ERP for food companies

Optimize your processes in the food industry with our industry ERP, Yaveon 365 – your key to successful Digital Transformation.

Examples of successful Digital Transformation in the food industry

Automated workflows seamlessly connected

The secret behind automated processes lies in workflows. They trigger each next step automatically, making tasks such as displaying goods receipts for production available with just one click. The real value unfolds when these steps are connected and trigger further processes – for example, when invoice data from a document management system is integrated with the ERP system.

Digital food tracking across the entire value chain

A digital value chain allows every stage of the food process to be mapped – from product development and production to delivery and customer feedback. Each step can be tracked and documented transparently.

Digital value chain

From ordering raw materials to issuing electronic invoices – Digital Transformation offers food companies enormous opportunities across the supply chain. Real-time data, reduced workload, clear visibility, and complete traceability are as helpful as the ability to archive information securely for audits.

Digital planning

When production planning is digital, it provides a much clearer overview. Why? Because data is stored centrally and accessed uniformly. This creates the basis for more accurate demand planning and maximally efficient workflows. The result: cost-efficient processes, smooth scheduling of delivery volumes, and real-time inventory visibility.

Digital twin

A digital twin is a virtual representation of a real object – from a single component to an entire production plant. It is created to run tests and simulate improvements virtually before applying them to the real-world product.

Productivity and energy efficiency in food processing

Digital technologies are used to make processes more efficient. This not only accelerates production and improves outcomes but also reduces energy consumption and helps companies save resources.

Filling and packaging

Data generated by digital tools helps optimize filling and packaging processes. By combining production lines with packaging processes, using equipment more efficiently, and identifying unnecessary packaging waste, companies can achieve significant improvements.

Digital technologies are also finding their way into other industries, offering a wide range of use cases for process optimization. For example, in the medical technology sector, similar tools are used – but with entirely different potential and application scenarios.

How Yaveon 365 supports Digital Transformation in the food industry

The opportunities sound promising – and they are. Food companies should not overlook them. But how can you make the most of digital potential? The answer: with the right software. Enterprise Resource Planning provides the ideal foundation to take the possibilities of manufacturing to the next – digital – level. To stay ahead, companies need ERP that fits their industry.

Our solution comes with features tailored to the specific challenges of the food industry, giving you greater security, smoother workflows, and more time:

  • Develop creative product ideas with peace of mind – research and development functions, including formula management, free up capacity for innovation.
  • Simplify lot tracking – handle what used to be time-consuming and frustrating digitally, clearly, and efficiently.
  • Ensure quality with less effort – digital quality controls help deliver premium products while reducing workload.
  • Streamline warehouse and logistics management – integrated functionality improves performance, lowers costs, and increases process efficiency.

Unlock your digital potential – and become a digital frontrunner in the food industry with Yaveon 365!

Will the future of the food industry be digital?

Digital processes are firmly established – and no longer imaginable without them. So what does the future hold? The food industry is evolving, and the chances are extremely high that the path forward will remain digital – only at a higher level. Digital Transformation in the food industry is an ongoing process. Some foreseeable trends include:

  • Connecting consumer experiences seamlessly across all channels
  • Accelerated e-commerce continuing to grow in importance
  • Maximum transparency for both customers and suppliers
  • Optimized supply chains driven by new developments
  • Artificial intelligence and related technologies gaining momentum and becoming firmly established
  • Step by step, innovations and enhancements are enriching the market. For manufacturing companies in particular, these new processes create opportunities – and serve as a bridge to a successful future.

Those who want to stay ahead cannot afford to hesitate. Digital progress is the way forward. Intimidating? No need. You already have more in place than you think – digital foundations are firmly rooted. Nurture them consistently, and you will reap a flourishing success that competitors can only envy.

Autor Stefan Klammler

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