Editor’s note: This story is part of a series highlighting takeaways from a March 25 event hosted by Supply Chain Dive, Manufacturing Dive and Food Dive. Register here to watch the replay on demand.
Scenario planning, visibility and traceability are foundational capabilities for food supply chains — an industry that depends on product quality and shelf life, experts said during a panel session at the Food Manufacturing Summit.
And with data quality being the “single biggest, most important thing” in food manufacturing, technology can help mitigate supply chain issues through demand planning, network models and other strategic tools, Mihir Tamhankar, principal at Kearney, said during the panel.
“This is not just about visibility into your own supply chain,” Dheera Anand, partner at Bain & Co., said. “You want to have upstream and downstream integration, and technologies being used to help with that end-to-end orchestration as well.”
Here are four technology tools food manufacturing brands are implementing for demand planning and inventory optimization.
1. Digital twins
Digital twin technology is an area that Tamhankar sees several food manufacturers investing in.
Digital twins simulate the end-to-end supply chain network to analyze disruptions in real-time and help mitigate and adapt to challenges accordingly. For example, large-scale network models that serve as the backbones of planning and strategic decisions are ripe candidates for simulations, Tamhankar said.
2. RFID
Visibility is crucial for food supply chains, Anand said. For instance, capabilities like radio-frequency identification, or RFID, as well as sensors, can not only provide visibility into available stock, but also help locate where inventory is and track its shelf life status.
“What kind of technology enablement you want to have, and really being able to see real life, real-time shelf life tracking, and being able to make faster decisions on how to route your products, especially for items that are close to obsolescence or expiration,” Anand said.
3. Cold chain
Cold chain investments can help maintain and extend the shelf life and quality of goods, such as fresh produce or protein, Anand said during the panel. Investing in cold chain capabilities can also help transport and store those goods safely.
4. Planning systems
Food manufacturers are investing in “stronger and more robust” planning systems, according to Tamhankar. A stronger planning layer can help manage inventory decisions in real-time.
