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ERP/E-COMMERCE CHANGING CONSUMER APPETITES
Laura Gilbank, business development manager at Columbus UK, explores the driving consumer and market forces behind the rapid transformation of the food sector, and suggests the digital solutions that will improve and innovate current processes
Demands for sustainable products, meat-free alternatives and seamless service for food deliveries all throw up their own challenges that businesses must navigate to stay competitive. Relying on legacy technology simply won’t provide the necessary level of agility and digital capabilities. The food market is, however, in excellent
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health, having shaken-off pandemic and supply chain disruption and embraced evolving consumer expectations. Indeed, the UK ‘food-to-go’ market alone is projected to reach £23 billion by 2025. Despite this strong position, changing
market conditions and consumer trends continue at a pace. As soon as food businesses have adjusted to, for example, increased regulations around allergen reporting, they’re faced with rising consumer demand for wider vegan or sustainable product ranges. In the near future, the success of food
businesses could be won or lost based on their ability to exploit technology that enables them to react to and tackle these fast-moving changes. Indeed, there are three key food
46 NOVEMBER 2022 | PROCESS & CONTROL
s food businesses move into the post- pandemic era, another storm is brewing in the form of major industry change.
industry trends expected to dominate the conversation well into 2023: 1. Food could be an inflation-busting growth
market – so agility and scalability will be key According to insights from the 2022 MCA
Food to Go Conference, the food-to-go market has demonstrated resilience to global disruption – rebounding 38% in 2021 post- pandemic. Looming inflation will no longer be an exception, as product ‘premiumisation’ where consumers are happy to spend more on what matters to them, and office working ‘food to go’ spending provide optimism. In fact, office worker spending is up 18%
despite visitation being down 40% since before the pandemic. Today’s consumers are buying food-to-go products on a less frequent basis, but they’re looking to ‘treat’ themselves more when they do. This opens new revenue streams for food businesses, with 34% of new products found on supermarket shelves now priced above £4 each – but where does technology come into the mix? Greater flexibility and scalability with sourcing
and distribution strategies, modern manufacturing operations and intelligent warehouse management are essential for food businesses to stay ahead of new supply chain trends. This is where digital solutions come in.
An ERP-CRM integration can improve
product forecasting and overall cost efficiency. If businesses can see data such as best-selling products, the quantities sold and whether that’s impacted by season and demand, this makes forecasting more accurate. This enable businesses to order the right amount of stock at the right time, improve overall cost efficiency and maximise the bottom line. With the right technology to support this process, businesses can better predict evolving customer demand and increase or decrease supply when needed, resulting in greater supply chain control. 2. Demonstrate your credentials from field
to fork to today’s ‘conscious consumers’ Food waste is responsible for 3.3 billion
tonnes of CO2 each year, with waste originating from the UK able to fill eight Wembley Stadiums. Waste reduction within the food industry has become a key focus area for consumers and governing bodies alike. The United Nations has set up a food waste reduction initiative target to half global food waste by 2030 and emerging food trends such as flexitarian diets and plant based diets are driving demand for food businesses to reduce their carbon footprint and overall supply chain waste. With 55% of consumers
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