While a large portion of the world’s population does not have adequate food for daily survival, it’s a sad reality that one-third of the food produced gets wasted. This wastage does not just consist of trash from the end consumer but includes discard from inefficiencies within the logistics operations of the food and beverage supply chain.
Nonetheless, the food and beverage supply chain is looking at technology adoption to improve efficiency, plug the wastage problem, and bolster profit margins. The perishable nature of a segment of food produce and their short shelf lives have made it challenging for the food and beverage supply chain to ensure optimal handling, timely transportation, and effective storage.
However, guaranteeing safe and fresh food delivery is paramount. The food and beverage supply chains must ensure the raw materials are harvested appropriately, transported safely and efficiently, processed properly, packaged according to government guidelines, and delivered to the customers. It can be a lot, but it becomes much easier with the right technology solutions and logistics partners.
This article explores how technology advancements and solutions transform the industry and address long-standing challenges, especially for reefer transport and logistics.
Persistent Challenges in The Food and Beverage Supply Chain
The delicate nature of perishables pushes the food and beverage supply chain to navigate challenges and nuances. Here are some of the commonly witnessed challenges in the industry:
Inherent Perishability
Food and beverages are inherently perishable, making it difficult for supply chains to manage them properly. Poor management and lack of streamlined processes lead to significant waste. To combat this, the supply chain has to meet certain conditions, such as precise timing and temperature conditions during food transportation.
Vast Network of Suppliers
While supplier consolidation is a highly effective strategy for managing suppliers in many supply chains, in delicate operations such as food and beverage, maintaining a vast network of suppliers, distributors, and retailers can enhance the business's resilience and flexibility. However, more suppliers and distributors often bring about complexities in the logistics operations that will expose the supply chain to errors and inefficiencies.
Adhering to Strict and Varying Global Regulations
The regulations guiding food and beverage supply chain operations can be vast and quite strict, especially for global supply chains. However, these rules are there to protect consumers and businesses. Nonetheless, navigating them can be problematic.
Demand Fluctuations
Food and beverage supply chains may find seasonality and trends challenging to manage, mainly because of fluctuations in demand. This forces adjustments, making these supply chains reevaluate all the planning and inventory management structures already in place.
Technological Innovations Enhancing Efficiency
Several supply chains in the food and beverage industries have to find a way to manage the nuances of their operations. However, technological advancements have made that much easier in the modern landscape. So, what are these technological advancements?
Real-Time Solutions
Technology has allowed for real-time monitoring of trailers and freight throughout the logistics process. That means more businesses and supply chains can remotely monitor and adjust the temperature of the containers or trailers transporting the food items. These are particularly helpful in reefer transportation and cold chain logistics. Some of the technology solutions that have made this possible are IoT devices and telematics.
Artificial Intelligence and Machine Learning
The issues in demand fluctuations can be palpable, and it is difficult for many supply chains to predict these fluctuations properly. However, with AI and machine learning, they can predict and draw out solutions or plans in real time that will help them manage these fluctuations. The AI and machine learning solutions will leverage and analyze historical data and current market dynamics in real time to offer predictions, optimize route planning, and effectively manage inventory.
Advanced Analytics
Technology solutions empower the food and beverage supply chains to analyze operations and other aspects of the supply chain effectively. This way, the supply chain has access to quality data it can leverage to improve decision-making, reduce waste, and anticipate market trends.
Automated Systems and Robotics
Human error can be a problem in the food and beverage supply chain, particularly because certain product segments are perishable. With automation and robotics, the supply chain can avoid delays and human errors that could lead to more costs. Automation could enhance the speed of the entire operation, from sorting and packing to transportation workflows.
Partnering With A Technology Forward Logistics Provider
A conscious adoption of technology solutions can optimize logistics operations to drastically reduce inefficiencies within the ecosystem, especially in segments involving excessive human intervention. However, this is only possible with the right technology solutions and by choosing the right tech-forward partners.
Continental Logistics leverages cutting-edge technology to provide unparalleled services to food and beverage shippers. We utilize state-of-the-art equipment and processes, such as expedited trucking, to ensure your products reach their destination under optimal conditions and on time. Our extensive experience and expertise uniquely position us to effectively manage the complexities and nuances of the food and beverage supply chain.
Contact Continental Logistics today to experience the difference.
