Matthew Iniger, CIFT’s Program Manager, is part of this Ohio MEP
Key takeaways:
- The food industry is digitizing rapidly, driven by advanced sensor technology and data collection capabilities, enabling manufacturers to better understand their ingredients, products and operations.
- Five major themes are reshaping the industry: supply chain flexibility (managing more SKUs/ingredients), digitization, autonomous systems/automation, increased consumer awareness of food sourcing/sustainability, and the need for operational sustainability.
- While new technologies offer significant benefits (24/7 operation, better accuracy, predictive analytics), they also present challenges, including high capital investment and the need for specialized skills in data analysis and programming.
In the past, data collection in the food industry has been limited for many food manufacturers for a variety of reasons — they may not have the skills or resources to collect and analyze the data, they may not know where to start, or they may be laser-focused on getting their products to their customers. With the ongoing improvement of sensor technology and its accessibility to manufacturers of all sizes, adaptation of the food industry is inevitable. Using these technologies, food companies are now able to better understand their ingredients, products and operations.
D Center for Innovative Food Technology (CIFT) And JobsOhio recently launched a survey State of the Food Industry. The findings highlighted five themes that significantly affect the food industry and make technological transformation in the industry more relevant.
Flexibility in supply chain
Supply chain disruptions have forced food processors to adjust quickly, improve risk management, and explore new channels for both suppliers and customers. Supply chain disruption is not new in this industry. We have seen an increase in supply chain challenges as consumers require food processors to source additional stock keeping units (SKUs) for their products.
Food processors often need to be able to handle 200 ingredients for 60 SKUs even when a large portion of their revenue is derived from other primary products. A higher SKU count and replenishment material introduces new, potential risks to the environment such as traceability issues, processing requirements or challenges related to storage.
A commitment to addressing this challenge has resulted in solutions that allow rapid adaptation to new supply constraints, real-time location tracking and alternative input sourcing through AI-driven algorithms.
Digitization of food industry
As manufacturing becomes more digitized, manufacturers need to understand what technology exists and how it can be incorporated into their operations to accommodate industry requirements for increased transparency and security. These changes are not only driven by compliance requirements, but they are also driven by retailers requiring their vendors to be able to participate in digital supply networks that help mitigate compliance concerns.
The more investment is made in measuring raw materials and finished products, the easier it will be to improve efficiency. For example, the shelf life of a product can be significantly optimized by accurately measuring water content in real-time.
Collecting information from activities will help develop consistency in approach and reduce reliance on specialized knowledge of key individuals.
Autonomous Systems in the Age of Industry 4.0
Autonomous systems are poised to revolutionize the food industry. They offer significant benefits, such as driving productivity improvements, enabling 24/7 operations, reducing labor costs, increasing operational uptime, reducing equipment wear and tear, and increasing accuracy and consistency.
Advances in sensor technology have enabled some food manufacturers to integrate artificial intelligence. These data acquisition systems can accurately profile complex biological materials and products, allowing manufacturers to automate processes and gain valuable insights from predictive data analysis, a practice that has long been used in other sectors.
While automation offers many benefits, it also comes with challenges. Automation typically requires substantial capital investment and the acquisition of advanced skills in data analytics and programming, both of which are in high demand across all sectors. Plus, you’ll need to budget time to complete onboarding your employees, which can delay your return on investment while your employees are trained to use the technology.
Food consumption awareness
Consumers who are more conscious of their food consumption are looking for a wider array of more transparent healthy options and processes. They look for brands that demonstrate their commitment to reducing their environmental footprint. To meet this need, food manufacturers can provide consumers with information that further explains how a product is sourced, made accessible through mechanisms such as QR codes and website sections dedicated to environmental impact.
Consumers also want increased personalization and convenience for shopping, purchasing and delivery. This trend has led to developments such as offering additional channels for product distribution such as direct-to-consumer, enhancing order processes such as shipping and packaging, and adding methods to enhance customer engagement such as customization options.
Operational stability
The food industry is expected to face stricter regulations on emissions, resource use and waste. Fortunately, advanced technology is making it possible to manage assets more efficiently.
Many food companies now have the potential to make substantial improvements by optimizing their waste streams and tracking progress in this area.
The most successful companies are those that optimize their resources while identifying the most advantageous opportunities for improvement while solving problems and practicing cost reduction. For example, is the food being stored in a way that keeps it fresh as long as possible?
Technology-enabled transformation
The food industry is undergoing a significant change driven by technological advancements. Flexibility in the supply chain and digitization of the food industry are reshaping how businesses operate. Autonomous systems are poised to revolutionize the industry, with AI and advanced sensor technology enabling automation and insightful predictive data analysis. As the industry anticipates stricter regulations on emissions, resource use and waste, these advanced technologies will play a critical role in managing resources more efficiently, ensuring compliance and sustainability.
Matt Iniger was with CIFT, which is part of this Ohio MEPFor three years, and during that time has worked with hundreds of companies providing a variety of engineering solutions required for unique situations. He directs CIFT’s Advanced Technology Program in Automation and Robotics. Matt also supports the product development team on certain projects, both benchtop work and production scale-up.
