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July 12, 2017
The digital revolution is among us and the food industry is beginning to see the impact. With the help of the internet of things (IoT), food processors, suppliers and retailers alike are uncovering opportunities for operational and monetary growth in their businesses. With 90% of companies investing in big data solutions, managers have the ability to make critical business decisions that lead to benefits including:
With 90% of companies investing in big data solutions, keeping up with industry is key. Utilizing digital analysis platform technology can help ensure sustainable, profitable growth for the entire supply chain. This kind of technology can provide insight into equipment performance, predictive maintenance needs and real-time inventory tracking. Products like CogniPRO Link™, featured at foodpro 2017 in Sydney, Australia, not only help identify inefficiencies within the production line but also provide real-time actionable solutions.
With global food loss at a staggering 1.3 billion tons per year, the food supply chain is beginning to utilize sensor technology to track temperature readings throughout the supply chain, increasing food safety and reducing retail shrink. Similar IoT technology can also be used to store product data and automate food quality reporting.
The 2011 Food Safety Modernization Act, put into place by the Food and Drug Administration of the United States, has created a catalyst for global change in the food industry. Focusing on compliance, prevention and the complexities of the global supply chain, this law has steered the food industry toward an even more proactive mindset when it comes to food safety.
Similarly, the Food Standards Australia New Zealand is a set of regulations to help “reduce foodborne illness by strengthening food safety and traceability throughout the food supply chain, from paddock to plate.” This local organization is responsible for developing and reviewing food standards including labelling, composition and contaminants.
The use of real-time temperature tracking sensors can help companies closely monitor food safety data points, ensuring efficient cold chain management. Through this technology, the supply chain can work together to become compliant with local and global regulations such as those described above. By using automated Hazard Analysis and Critical Control Points (HACCP) checklists during production, manufacturing and transporting processes, companies have access to consistent, meaningful data that empower them to implement food safety solutions.
Consumers expect transparency from the companies that they buy from — especially in the food industry. Implementing transparency and traceability along the global supply chain will help food companies win business by driving consumer trust and loyalty. Although domestic and international regulations can increase the complexity of the global food supply chain, IoT technologies can make it easy for both consumers and companies to track products.
Transparency also has added benefits that can create advantages for companies such as cost savings, improved inventory management and faster lead times.
IoT is powerful and can connect the supply chain to real-time product data, creating endless opportunities for the food industry. Companies can reap the benefits by finding and solving inefficiencies in the supply chain, meeting and exceeding food safety regulations, and providing transparency to consumers. What benefits have you seen due to IoT in the food industry?
Emile Chammas is SVP, Chief Transformation & Manufacturing/Supply Chain Officer for Sealed Air. Emile leads the global procurement and manufacturing organizations with a focus on SEE Operational Excellence across the company. He also serves as Chief Transformation Officer, reflecting his company-wide leadership of the Reinvent SEE strategy, and oversees the global IT organization.