Tag Archives: AI

Tatiana Bravo, INTURN
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Looking Ahead: The Digital Supply Chain and Fast-Moving Consumer Goods

By Tatiana Bravo
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Tatiana Bravo, INTURN

The global supply chain is changing. The fast-moving supply chains that power many of the world’s top businesses are being transformed before our very eyes, as companies all over the globe compete to beat their competitors through digitalization.

What we’re now seeing is the emergence of a digital supply chain, with processes powered by innovative and exciting new ideas turned into software.

As we look ahead to the coming months and years, we can expect to see incredible changes affecting the supply chains of all manner of businesses. In fact, we’d go so far as to say that any business that’s serious about competing on the global stage will have no choice but to embrace these innovations and go digital.

So, what exactly can we expect to see from the digital supply chain in the near future, and how might these changes affect fast-moving consumer goods?

Advanced Analytics

The potential of analytics is incredible, particularly when you look at supply chains.

Recent years have seen data rise to the forefront of many business leaders’ concerns. Increasing numbers of companies have started to pick up on the impact that informative data can have on their strategies, and ultimately their chances of ongoing success in the marketplace.

The supply chain is no exception to this rule. As the power of analytical software improves, businesses will be clamoring to gain access to, and make use of, the huge amount of data that’s now available.

We’re likely to see those managing data put under increasing amounts of pressure to use that data effectively, helping to inform decisions that impact supply chain processes and limit wastage. This data will also be invaluable in determining the real impact of critical supply chain decisions and informing future strategies.

The Emergence of AI
AI is the next big thing in business, and it’s set to transform the way the digital supply chain works. Artificial intelligence is now emerging as a hugely powerful tool, capable of helping businesses to make the right decisions for their supply chains.

As the potential of AI improves, we can expect to see its impact felt more widely throughout global supply chains. Look out for AI being used to inform businesses on changing customer preferences, disruptions in supply chains, increasing costs and other obstacles to product delivery. Artificial intelligence will predict future problems before they occur, giving business owners plenty of time to steer clear of potential pitfalls and keep things moving.

AI will also prove invaluable when it comes to anticipating the purchasing habits of existing customers and establishing the value of new leads and potential purchasers. If used effectively, this information could have a dramatic impact on the success of a wide range of different businesses—particularly those focused on fast-moving consumer goods.

Automation of Supply Chain Tasks

Automation itself isn’t a new idea, but the way it’s being used in digital supply chains is.

In the coming months and years, we’re likely to see automation transform the way supply chains work. The automation of processes will help businesses to cut costs, improve efficiency and eliminate any skills gaps by which they may be affected.

Supply chain tasks are being automated with the help of something called robotic process automation, or RPA. This form of automation is even smarter than traditional automated processes.

Informed by software bots or AI, RPA is a significant step forward in the world of digital supply chains. It’s highly scalable, incredibly effective and, importantly, it’s been proven to be hugely reliable. So, even businesses dedicated to the very highest standards of quality are now beginning to automate processes using RPA.

Climate Change Challenges

Climate change continues to be a hot topic in the news, and supply chains are likely to feel the impact of these concerns.

Consumers’ purchasing habits are increasingly led by environmental considerations. It’s therefore important that companies consider the environmental impact of their supply chain processes and provide visibility on these, for those who have an interest.

It’s expected that issues surrounding sustainability will become ever more critical in the future. Inevitably, supply chains will be impacted. Companies making use of digitalization will be best placed to prepare for the challenges of sustainability, reducing waste and making speedy adjustments to their processes as and when required.

A Shift in Transportation

The digitalization of supply chain processes has given ecommerce companies and online retailers the edge over traditional high street retailers. And this has led to a shift towards online shopping, which shows no sign of waning. As we continue into 2020 and beyond, we can expect to see more and more consumers choosing to shop online, and that’s going to have a knock-on effect on the transportation of goods.

Experts are predicting a transportation crunch, when demand begins to outstrip the availability of transport for online goods. This is likely to lead to a shift in how goods are transported, which could well align with changes to logistics designed to improve sustainability and reduce the carbon footprint of products.

Changes in Trade Agreements

Changes in trade agreements between many of the world’s leading economies are likely to impact supply chains in the future. With Brexit looming and trade issues between the United States and China continuing, it’s important that companies remain aware of how political decisions might affect the way they work.

Digital supply chains provide enhanced flexibility for companies, enabling organizations to quickly adapt to changes that could be outside of their control. So, companies that continue to provide a fast and reliable service despite changing trade agreements could well gain an edge over less efficient competitors as time goes on.

Companies making full use of digitalization will be best placed to make the most of new opportunities, and avoid supply chain disruption as a result of changing trade agreements.

Security Concerns

While businesses are beginning to realize the potential of the data that’s now available to them, consumers too are opening their eyes to the data that they share with the world. And this increased awareness has led to consumers being newly concerned about the data they reveal, and how secure that data is once it’s been shared.

Companies looking to make full use of the digitalization of supply chain processes will be incredibly reliant on data to maximize their efficiency. For this reason, it will be vital that companies establish trust with their existing customers and new prospects.

Security measures should therefore be top of the agenda for forward-thinking businesses. Companies that fall foul of security breaches and data losses are unlikely to be trusted with consumers’ data going forward, and this could have a detrimental impact on the efficiency of their digital supply chains in the future.

Digitalization is sweeping through the supply chains of companies all over the planet, and its potential is mind boggling. The automation of supply chain processes has already transformed the way supply chains are managed, massively increasing the speed and efficiency of a huge number of different companies.

In the future, we’re likely to see further improvements to digital supply chains, as companies begin to make better use of artificial intelligence and robotics. Look out for supply chains managed by AI-powered software and RPA, and get ready for astounding productivity from early adopters of these exciting new technologies.

Lab grown meat

How Plant-Based Foods Are Changing the Supply Chain

By Maria Fontanazza
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Lab grown meat

The plant-based meat market is anticipated to be worth more than $320 million in the next five years, according to a report released last summer by Global Market Insights. As the popularity of meat-alternative products continues to rise, new challenges are being introduced to supply chain management. Joe Scioscia, vice president of sales at VAI explains some of these hurdles and proposes how technology can help.

Food Safety Tech: Is the growing popularity of plant-based foods introducing hazards or challenges to the supply chain?

Joe Scioscia, VAI
“The growing popularity of plant-based foods has presented a new set of challenges for the supply chain,” says Joe Scioscia of VAI.

Joe Scioscia: The growing popularity of plant-based foods has presented a new set of challenges for the supply chain, especially considering many of these organic items are being introduced by traditionally non-organic retailers. Impossible Foods received FDA approval for its plant-based burger in 2019, showing just how new the plant-based movement is to the industry.

Obviously, the organic supply chain and produce suppliers have long followed regulations for handling produce, such as temperature controls, cargo tracking, and supply and demand planning software, so the produce could be tracked from farm to table and in the case of a recall, be traced back to the source. But for meat alternatives that are combining multiple plant-based ingredients, organizations in the supply chain who are handling these products
have new food safety concerns. Considerations on how to store and process meat alternatives, how to treat each ingredient in the product and, most importantly, how to determine temperature controls or the source of contamination are all discussions the food industry is currently having.

FST: How are plant-based foods changing the dynamic of the supply chain from a food safety perspective?

Scioscia: The food supply chain has changed dramatically in recent years to become more complex, with food items traveling farther than ever before, containing more ingredients and required to follow stricter regulations. Many of the changes to the supply chain are for the better—organic and plant-based alternatives offer health benefits for consumers and are a move towards a more sustainable future. But the reality is that the supply chain isn’t quite there yet. Suppliers, retailers and producers at every part of the supply chain need to work together to ensure transparency and food safety compliance—including for plant-based products. Foodborne illnesses are still a real threat to the safety of consumers, and these same consumers are demanding transparency into the source of their food and sustainable practices from brands. All of these considerations are what’s making this next era of the food industry more complicated than ever before.

Because food safety compliance is always top of mind in the food industry to keep consumers safe, this new and complex supply chain has required companies to rely heavily on technology solutions to ensure plant-based products are equally as safe to consume as non-organic alternatives. These same solutions are also helping supply chains become more transparent for customers and streamline food processes to build a more sustainable future.

FST: What technologies can food companies and retailers use to better manage the supply chain risk while supporting the increased consumer demand for meat alternatives?

Scioscia: Utilizing a centralized software system is one tool many food suppliers and distributors can use to better visualize, trace and process products in the supply chain—including for plant-based alternatives. Having access to a central platform for business data to track assets and ensure food safety regulations are being met allows for companies to optimize processes and cut unnecessary costs along the way.

Heading into 2020, many organizations in the food supply chain are also looking at new applications like IoT, automation, and blockchain as ways to curb food safety issues. The FDA has taken steps to pilot blockchain and AI programs to better track drugs and food products, in conjunction with major food brands and technology companies. Other organizations are following suit with their own programs and many are looking at these solutions to improve their food tracking efforts. It’s clear technology has the most potential to make it easier on the industry to comply with food safety regulations while meeting customer demands for plant-based alternatives and organic options—all the while building a sustainable supply chain for the future.