Businesses are using data analytics more and more to improve operational effectiveness
Published on : Tuesday 03-09-2024
Anubhav Agarwal, Managing Director & CEO, BN Group.
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What are the most significant trends driving digitalisation in the Food & Beverage industry?
Digital transformation is a necessity and the food and beverage industry has adopted technology at a rapid pace. Several trends such as deploying technology solutions to make supply chains more transparent to driving compliance through digital solutions are making headwinds in this space. Further, with an increased focus of consumers on health-first solutions, peers in the space are making significant investments to innovate and cater to these growing demands.
Lastly, data-driven decision-making is going to be the future. Businesses are using data analytics more and more to improve operational effectiveness, better understand customer preferences, and forecast demand. This trend is here to stay and would help in targeting customers in a better way.
What are the biggest challenges that Food & Beverage companies face when implementing digital transformation?
In a world dominated by smart technology, the Internet of Things (IoT), and automation, it should come as no surprise to us that food companies have stepped up their digital transformation efforts. A high initial investment is one of the biggest challenges during digital transformation initiatives. Many businesses report difficulties in integrating new digital tools with their existing infrastructure, leading to delays and increased costs. The industry requires a workforce skilled in digital technologies and data analytics. However, many employees in the sector lack the necessary digital skills, highlighting a need for extensive training and development programs. These challenges can be overcome by taking necessary steps in the right direction.
In what ways is digitalisation contributing to waste reduction in the Food & Beverage industry?
Yes, digitalisation is significantly contributing to waste reduction through improved demand forecasting. By utilising data analytics, companies can more accurately predict consumer demand, reducing overproduction and minimising food waste. Real-time inventory management is another area where digitalisation is making a difference. Companies using sensors to monitor inventory levels report significant reductions in waste due to better stock management. These sensors help ensure that products are stored under optimal conditions and are used before their expiration dates. Enhanced supply chain visibility allows companies to quickly identify and address issues such as delays or improper handling, reducing waste during transportation and storage.
How is data analytics being used to optimise supply chain management and inventory control in the Food & Beverage sector?
Data is becoming increasingly important to modern businesses in the ever-changing world of commerce. It plays a crucial role in decision-making, and data gives organisations the ability to discover a wealth of information. Demand forecasting can be enhanced by data analytics, which can also help reduce excess inventory and match production schedules with market demand. The real-time visibility helps identify operational inefficiencies and bottlenecks, enabling prompt corrective actions and ensuring timely delivery and reduced spoilage.
Data analytics also enhances inventory management by analysing historical data and trends. Companies can optimise stock levels, reducing holding costs and minimising the risk of stockouts. This leads to more efficient inventory control and cost savings. Businesses that use predictive analytics in their supply chain have an advantage over competitors who rely on conventional forecasting techniques because they can better adapt to changes in the market and client needs.
How has digitisation impacted the operational efficiency and profitability of Food & Beverage businesses?
Digitisation has been driving substantial improvements in operational efficiency and profitability. We've seen how digital technologies optimise processes, enhance customer experiences, and boost our bottom line.
Enhanced supply chain management through IoT and AI enables real-time tracking of inventory and predictive analytics, reducing waste and stockouts. The adoption of predictive maintenance has also played a significant role. By anticipating equipment failures and scheduling timely maintenance, companies have reduced maintenance costs and increased equipment lifespan, contributing to higher operational efficiency.
According to the Invest India portal, the implementation of the PLI scheme is likely to facilitate the expansion of food processing capacity by nearly INR 30,000 crore and it will create additional direct and indirect employment opportunities for about 2.5 lakh people by the years 2026-27.
On the profitability front, digital marketing and e-commerce platforms have expanded market reach and improved customer engagement. Businesses that have invested in digital marketing report increased online sales. I think personalised marketing strategies, driven by data analytics, have improved customer retention and boosted sales revenue.
What role does digitalisation play in enhancing food safety and quality assurance?
Again, real-time monitoring systems, which are a very important factor, have improved the ability to maintain optimal conditions during production, storage and transportation, ensuring the safety and quality of food products. Traceability solutions, such as blockchain technology, have changed food safety. These solutions provide a transparent and permanent record of the product journey, enabling quick identification and isolation of contamination sources, ensuring swift and effective recall procedures. Data analytics is also pivotal in predictive quality control.
Digitalisation also ensures compliance with regulatory standards. Automated documentation and reporting systems streamline the compliance process, reducing the risk of human error and ensuring accurate record-keeping systems.
Anubhav Agarwal is a driven and enterprising young entrepreneur hailing from a prestigious business family with interests in timber, construction, and real estate. From a tender age, he immersed himself in the family business, learning invaluable skills under the guidance of his father. In 2011, Mr Agarwal was struck by a visionary idea that could positively impact the lives of millions of people, leading to the inception of BN Agritech.
As an ambitious businessman with a focus on serving the masses, he ventured into the edible oil segment, building a national presence and expanding the brand's reach over time. His acute business acumen, combined with a profound understanding of products and customer preferences, paved the way for this remarkable growth, which has now positioned the company on a global trajectory.
At the core of his vision lies a commitment to providing healthy and quality products to customers worldwide. His unwavering dedication centres around transforming the BN Group into a globally acclaimed and trusted brand in the FMCG industry.
Mr Agarwal's academic achievements include an MBA, and he is a loving family man with a spouse and two children. During his leisure time, he indulges in reading, exploring new places through travel, and fostering meaningful connections with people.
As an accomplished corporate leader, Anubhav Agarwal embodies the spirit of entrepreneurship, driving innovation, and making a positive impact on society while embracing a future that holds limitless possibilities for BN Agritech and the BN Group.
About BN group
BN Group is a versatile conglomerate with diversified interests in the FMCG, Edible Oil, and Speciality Chemical sectors. As a prominent player in the Edible Oil segment since 2011, we have established ourselves as one of the leading manufacturers of indigenous vegetable cooking oils. Our vision is to expand into various FMCG categories while continuing to maintain a strong presence in the FMCG/Edible Oil Sector. Additionally, we are actively diversifying into the Speciality Chemical Business.
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