Key points
Over 6 million people in the UK have embraced Veganuary since its creation in 2014, which indicates a significant shift towards plant-based diets beyond the vegan community. This surge in interest can be attributed to heightened awareness surrounding environmental sustainability, animal welfare, and personal health, coupled with disruptions in traditional supply chains – but what knock-on impact is this having on process manufacturing?
Here, Chris Nichols, Microsoft Dynamics Consultant at Columbus UK, highlights why food manufacturers in particular will need to prioritise the development of resilient and digitally-integrated supply chains in order to cope with redefined food ecosystems.
‘Fake’ meat products have transitioned into the mainstream, with their quality and resemblance to real meat constantly improving. Greggs vegan sausage roll is just one high-profile example of how businesses are starting to cater for the plant-based alternatives market – and many more will follow.
The plant-based market is projected to comprise up to 7.7% of the global protein market by 2030, valued at over $162 billion compared to $29.4 billion in 2020. So, what implications will this have on the process manufacturing industry?
Growing demand of plant-based diets places heightened strain on already fragile food supply chains as consumers seek out more sustainable options and greater transparency in their food purchases.
The pressure is now on proactive manufacturers to embrace digital strategies that can match new consumer demands – and technologies such as AI, PowerBI, and food-specific ERP systems will be indispensable in catering to the evolving needs of this expanding plant-based market.
Real-time data guarantees rapid response times across every floor
Every year the volume of data produced within the food industry grows, and those adept at harnessing the appropriate data can swiftly navigate the market, make precise forecasts, and adapt their business strategies to align with the most recent plant-based trends.
But without the correct digital tools, it could take hours (or even days) for businesses to pull data together and by the time they’ve processed the information into an easy-to-read format, most of it will already be out-of-date. So how can manufacturers have real-time data at their fingertips?
PowerBI can help food companies collate and display information from a variety of data sources such as attributes, batches, products, and customers. This sophisticated technology provides a rapid information breakdown and enables easy access to understandable data, allowing food businesses to access relevant information in the event of a potential quality concern and quickly evaluate issues before they become a problem.
As pressure mounts on food manufacturers and distributors to provide high-quality plant-based food at increased volumes, AI can play a major role from the factory floor, all the way to the business strategy at the top floor.
For example, IoT devices can automatically collect data on machinery performance against how the equipment should be performing, saving teams valuable time as they won’t need to monitor performance manually.
But its capabilities don’t end there. AI can help manufacturers test whether there will be future consumer demand in new plant-based trends such as cultured meat and determine the impact on supply chains.
Food trends come and go but with the growth of plant-based foods businesses need to be ready to react quickly – and data analytics is the missing piece to introduce greater flexibility into supply chains.
The hidden cost of not automating impacts more than the bottom line
Trying to keep prices in line with the well-established meat industry has been a challenge for many plant-based leaders. Last year, 49% of UK consumers found switching to plant-based products more expensive than their non-plant-based counterparts.
Businesses that can keep base pricing consistent therefore will be able to gain a foothold in the market and build lasting customer relationship. But at what cost? Food prices are continuing to soar for food businesses, so how can businesses save money and at the same time remain profitable and protect margins?
Staffing costs will always make up a large part of spending. However, businesses can maximise existing staff output by automating simple tasks, which allows workers to focus on more critical actions and overcome concerns around labour shortages.
Tools such as QR code scanners can collect information quickly and remove the risk of human error, such as typos. Food-specific ERP solutions can also automate shift, production, and sanitation scheduling, which frees up staff to concentrate on proactive planning and continuous improvement that can lead to savings in the long run.
With the assistance of automation techniques, manufactures are able to effectively cope with new and existing demand, leading to suppliers being able to increase the variety of food they offer to vegan and vegetarian consumers – but also control their pricing accordingly.
However, this strategy hinges on the business’ ability to handle big data and how they can best utilise it with the help of technology that sits within their operations.
Food manufacturers need to set the ‘gold standard’ for supply chain traceability
In today's food-conscious consumer landscape, food traceability is an essential requirement for consumers that require an understanding of the origins and contents of their food. Especially when more than 60% of consumers read a product’s ingredient statement and nutritional panel when buying plant-based products.
To cater to this growing consumer base, food manufacturers need to be well-versed in vegan and vegetarian processes and be able to effectively track products in the “goods in” and “goods out” processes or risk breaking trust with their suppliers.
We’ve seen the damage to businesses when traceability processes breakdown – supermarket giants Tesco and Sainsbury’s both took a brand reputation hit back in 2018 when the Food Standards Agency (FSA) found traces of meat in their vegan and vegetarian ranges.
So how can companies avoid this scenario? It all comes down to transparency. Businesses need to provide consumers with the confidence that what they’ve bought has been made, transported, and created in a vegan or vegetarian friendly environment.
Manufacturers who use both meat and vegan products need to look at their production lines to ensure they can effectively tackle food supply chain challenges such as cross-contamination.
A food-specific ERP system with bi-directional and quality assurance (QA) functionality can step up to the plate to ensure manufacturers establish extensive quality and customer safety checks throughout the entire supply chain.
Lot tracking capabilities for instance, enable manufacturers to find out exactly where every ingredient and every piece of raw material came from.
Plant-based manufacturing embarks on a new digital frontier
The recent surge in plant-based diets represents a sustained lifestyle choice for millions of UK consumers. Over the last decade, movements such as Veganuary have gained global traction, which has prompted the food industry to develop meat alternative products.
This adjustment period has been particularly challenging for process manufacturing businesses who have had to contend with additional factors such as the Suez Canal and Red Sea disruptions. Fortunately, technology has been a lifeline for managing these pressures.
From the initial “goods in” to the final “goods out” stages, digital solutions such as specialised food ERPs and AI play a vital role in ensuring consistent product quality and safety throughout the entire supply chain – two factors that are integral to meeting new consumer expectations and will help businesses cater to every dietary preference.
