The food and beverage logistics industry, already one of the most crucial segments within global supply chains, continues to evolve with emerging technologies designed to accommodate improving living standards. Consumers demand fresher and higher-quality products requiring special care, such as refrigerated transportation.
As retailers take steps to meet customer expectations, their food and beverage logistics segment becomes a lynchpin to business growth while playing a key role in ensuring better food safety and minimizing waste.
For instance, a deli meat company recently recalled 7 million pounds of meat, including liverwurst and ham products, because of suspected listeria contamination. This problem highlights the crucial role food and beverage logistics plays in safeguarding public health, preserving product freshness, and enhancing cost savings.
As the F&B industry continues to evolve, new trends are emerging. This article delves into some of the major trends that are reshaping the food and beverage logistics landscape.
Beyond meeting ever-rising expectations, shippers rely on food and beverage logistics to help them navigate a dynamic marketplace rife with internal and external pressures. Adapting to current trends and staying a step ahead whenever possible is crucial for success. Here are some of the trends shaping the future of F&B logistics.
Volatility and unpredictability are standard in today's logistics and supply chain operations. Climate change, geopolitical crises, and economic fluctuations are just a few of the influences that trigger disruptions across vital processes and operations in getting food and beverages from vendors to customers.
Amid the threat of constant disruption, shippers must prioritize resilience and agility to avoid or mitigate product shortages, price volatility, quality and safety concerns, increased costs, and operational inefficiencies. The following tactics and tools can help shippers build agility and resilience across their food and beverage supply chains:
Technology plays a major role in F&B logistics operations. Artificial Intelligence, the Internet of Things, and robotics enable shippers to leverage data to streamline the entire food and beverage logistics process, enhance visibility, and increase throughput.
With digitization, food and beverage shippers can do so much more with less, even while navigating the industry's challenges, such as inherent perishability and the litany of regulations that guide it.
Warehousing, sorting, and transportation are key elements of food and beverage logistics. With automation, many of their processes can become way more efficient. Here is how:
As sustainability continues to become a main feature for businesses across the globe, F&B shippers are held to much higher standards. This is primarily due of the increasing amount of waste and its environmental impact. For instance, food loss and waste account for at least 10% of total greenhouse gas emissions.
Food and beverage logistics also amounts to about 19% of the food system's total emissions. But beyond the regulatory bodies pushing for more sustainability initiatives, businesses also have to worry about customers. A significant number of them won’t patronize businesses without a trackable sustainable initiative, which puts the top line of businesses refusing to take it seriously at considerable risk.
Unfortunately, the nature of food and beverage products means there will be challenges in inventory management. For instance, each product must be preserved and allocated while considering special requirements such as temperature and shelf life.
These challenges call for the application of a dynamic inventory system and predictive solutions that will give retailers more control over the entire inventory operation. Here are some ways these systems accomplish these:
The FDA and Food Safety and Inspection Service (FSIS) are the major federal agencies that monitor food and beverage products and ensure their safety. The FSIS focuses on ensuring the safety of meat, poultry, and egg products, while the FDA focuses on farmed products and everything else.
However, there have been a record number of recalls in recent years, with 2023 alone seeing as many food recalls as the last five years before that combined. Such recalls can be very expensive, potentially leading companies to bankruptcy.
This is why ensuring product safety is critical. Businesses and their logistics operations have to take extra care to ensure that the food reaches consumers in the safest way possible. Although that can lead to more expenses, it beats the financial and opportunity costs of a recall.
In a world where external events like natural disasters and geopolitical tensions are increasingly disrupting supply chain operations, it is evident that, despite their best efforts, many suppliers may struggle to meet expectations due to these external pressures. The answer to this is diversification. By diversifying suppliers and sourcing strategies, F&B businesses can mitigate risks and keep the supply chain flowing, even in uncontrollable situations.
Sustained collaboration with suppliers will ensure they are as invested in the process as the retailer. This evokes a sense of loyalty and priority services from the suppliers. Collaboration fosters strong relationships, resulting in a consistent track record and transaction volumes, demonstrating to the supplier that your business is a valuable and preferred partner.
Here are three strategies for ensuring continuous supply amidst global uncertainties:
Customer expectations are ever-evolving, and so are the businesses that rush to cater to demand. Retailers are adjusting their logistics operations to be customer-centric, and one way of doing that is by investing in logtech solutions. Today, technology is leveraged to shorten delivery times, improve tracking and communication, and implement flexible delivery options.
The Continental Logistics Advantage in F&B Logistics
Continental Logistics is more than just another third-party logistics (3PL) provider. We deliver tailored solutions that align perfectly with the unique demands of your food and beverage logistics and supply chain operations. Our expertise goes beyond transportation, extending deep into the industries we serve, ensuring that we understand and support every aspect of your business.
We utilize advanced technologies such as telematics, IoT, GPS, and TMS, seamlessly integrating them with your existing tech stack to ensure optimal performance across your entire F&B supply chain. With Continental Logistics, say goodbye to issues such as chargebacks, rejected loads, and product waste. Connect with us today.
