Industrial Automation Magazine India

Implementing digital transformation in the F&B industry can bring numerous benefits

Published on : Thursday 08-08-2024

Ajey Phatak, Head of Marketing and Business Development, Beckhoff Automation Pvt Ltd.

What are the most significant trends driving digitisation in the Food & Beverage industry?

The F&B industry is rapidly following the significant general industry trend of driving digitisation of supply chains, consumer interactions and digitisation of shop floors. The use of Automation & Robotics is getting higher attention as the product manufacturers are seeing and experiencing the direct benefits, e.g., higher efficiency and consistency, safety, customisation, etc. Software driven product transport technologies that are necessary for such results are achievable with new automation technology products like Beckhoff, which enable perfect customisation in sorting, packaging, cartoning, etc.

Use of IoT sensors or smart sensors is widely considered. Internet of Things (IoT) devices and sensors provide real-time data on equipment performance, environmental conditions, and product quality, helping manufacturers optimise operations.

Due to the advantages of data driven decision making, big data analytics is also on the agenda of the decision makers. The artificial intelligence (AI) and machine learning (ML) applications, which are very easily achieved with PC-based control systems, EtherCAT and TwinCAT software is also a trend.

What are the biggest challenges that Food & Beverage companies face when implementing digital transformation?

Implementing digital transformation in the F&B industry can bring numerous benefits, but it also comes with significant challenges. Some of the biggest challenges that F&B companies face is the high initial investment in infrastructure and high technology capital equipment. Cost of implementing new technologies such as IoT devices, automation systems, and advanced analytics tools can be substantial. This includes the expenses related to hardware, software, and training.

Smaller companies may struggle to allocate sufficient budget for digital transformation, especially when balancing it with ongoing operational costs.

The outlook of the management is also a big challenge for implementing high technology systems, automated systems and digitalisation in the manufacturing plants.

An industry survey of preferences has shown that the MNC companies have a value added approach and have high priority for technology driven manufacturing even though it costs high whereas Indian manufacturers still have a cost-based approach and not technology-based approach even though they see value and can afford it.

Digital transformation requires a cultural shift towards innovation and agility, which can be challenging in traditional organisations with established practices. Change management and organisational culture play a bigger role.

Integration with Legacy Systems is also a challenge. Many F&B companies rely on legacy systems that are not easily compatible with new digital technologies, leading to integration challenges. Legacy systems often result in data silos, making it difficult to achieve a unified view of operations and consumer insights.

As companies digitise, they become more vulnerable to cyber attacks and data breaches, which can compromise sensitive consumer information and operational data. So there are cybersecurity concerns, which can be addressed but it is a good reason to avoid a change. Resistance to change is another challenge.

The existing workforce may lack the necessary skills to operate and maintain digital systems, requiring significant investment in training and development.

Successful transformation depends on strong leadership and a clear vision from top management, which may be lacking in some organisations. Leadership commitment is also a big challenge.

In what ways is digitisation contributing to waste reduction in the Food & Beverage industry?

Yes, digitisation is significantly contributing to waste reduction in the F&B industry by improving efficiency, enhancing supply chain transparency, and enabling better decision-making, e.g., improved inventory management – demand forecasting, real time inventory management, enhanced supply chain efficiency, advanced packaging and logistic optimisation, smart farming or precision agriculture, predictive analytics, automated quality control, AI-driven vision inspection, etc. Consumer engagement and knowledge sharing about storage and disposal also helps reduce wastages.

How is data analytics being used to optimise supply chain management and inventory control in the Food & Beverage sector?

Data analytics can play a pivotal role in optimising supply chain management and inventory control in the F&B sector. Demand forecasting, predictive analytics, seasonal and event linked consumption analytics and consumer behavior analytics, etc., can help inventory and production optimisation.

Supply chain visibility and transparency can increase efficiency and brand equity.

How has digitisation impacted the operational efficiency and profitability of Food & Beverage businesses?

Digitisation has driven improvements in the following areas: enhanced operational efficiency. Automation and robotics has streamlined production processes, maintained consistent quality, packaging, and reduced cost of goods sold (COGS). IoT and real time monitoring has helped reduce machine down time, improved equipment maintenance, optimised processes, brought supply chain visibility, etc. Improved profitability has come due to cost reduction, efficient resource management and waste reduction; also increased revenue due to premiumisation in product pricing using smart and attractive packaging, faster time to market, quick response to market feedbacks and demands, efficient logistics, etc.

What role does digitisation play in enhancing food safety and quality assurance?

By leveraging advanced technologies such as IoT, blockchain, AI, ML and data analytics, companies can improve their ability to monitor, trace, and manage food quality and safety throughout the supply chain. Use of traceability and transparency, use of machine vision systems, artificial intelligence and machine learning can enhance and maintain product quality.

(The views expressed in interviews are personal, not necessarily of the organisations represented)

Ajey Phatak has been actively promoting Open Automation technology in India with Beckhoff for the past 15 years. He has made significant contributions to promoting and marketing PC-based automation technology in Indian industry since 2007, by using and learning digital marketing techniques.

A post graduate in Applied Electronics from Pune University and Management Graduate with over 30+ years experience in field of Technology Marketing, Concept Selling in Industrial Electronic products, Ajey was part of a team in pioneering efforts in the 1980s in promoting use of LEDs in industrial devices like alarm annunciators. Special efforts to promote electronic/digital overload relays (vs bimetal) for AC induction motor protection, and other technology products in the 80s/90s and established its sales in the Indian and international market.  

____________________________________________________________________________________________

For a deeper dive into the dynamic world of Industrial Automation and Robotic Process Automation (RPA), explore our comprehensive collection of articles and news covering cutting-edge technologies, robotics, PLC programming, SCADA systems, and the latest advancements in the Industrial Automation realm. Uncover valuable insights and stay abreast of industry trends by delving into the rest of our articles on Industrial Automation and RPA at www.industrialautomationindia.in