BusinessFood & Nutrition

How Is Technology Changing the Food Supply Chain Industry?

Technology is changing just about every aspect of how Americans live their lives, and the way they eat is no exception. In the food industry, supply chain efficiency is of the utmost importance when it comes to both profitability and consumer safety. When just one link in that chain gets broken, it can cause a negative ripple effect that extends all the way to end consumers.

The good news for farmers, processors, vendors, and consumers is that more modern food manufacturers than ever are starting to embrace advancements in supply chain technology. Read on to find out how technology is changing the industry for the better.

Building a More Robust Network

It used to be the case that every link in the supply chain operated independently. Now, though, modern software solutions have made it possible to manage the movement of food products across the entire supply chain. 

Supply chain management (SCM) software facilitates communication between different parties and makes it possible to reduce waste, fill gaps in demand, and manage the physical movement of goods not just on-site but across the globe. Businesses and organizations operating within the food supply chain industry can learn more about appropriate SCM solutions at

Adopting Cloud-Based Communication Strategies

Until recently, representatives from each organization within a supply chain had to meet for in-person meetings whenever they wanted to make changes that would impact everyone’s business operations. Cloud-based communication reduces reliance on in-person meetings and makes it possible to layout guidelines for the different processes required to ensure proper supply chain management.

Unlike conference calls or even Zoom meetings, cloud-based communication allows business partners to engage in real-time data exchanges. The ability to share accurate and up-to-date data with all the businesses playing a role in a supply chain makes it possible to mitigate problems quickly and make more informed decisions.

Taking Advantage of Predictive Analytics

Predictive analytics technologies offer a more accurate view of how the actions of just one link in the supply chain could affect everyone’s bottom line in the future. Predictive analytics can be used to make decisions about everything from how much it will cost to transport produce to how often food processing equipment needs to be maintained.

It provides more accurate inventory forecasts and makes it possible to streamline every step of a supply chain’s processes.

Understanding Changing Consumer Preferences

Modern supply chains are far more complex than those of centuries past. It used to be the case that an end-consumer could go to town and purchase ingredients directly from a farmer. While there are still farmers’ markets that operate on this much simpler model, the vast majority of Americans’ diets consist of more processed goods purchased from grocery stores or restaurants, not farm-fresh produce.

Supply chain management technology allows farmers, manufacturers, vendors, and others to better understand ad account for changing consumer preferences. In some cases, that might mean sourcing more plant-based foods to accommodate a growing consumer desire to eat more ethically. In others, it could mean increasing the production of specialty foods in response to more robust employment prospects and increased spending.

Keep Up With the Times

Technology is changing fast. No matter where a company falls on the supply chain, industry leaders know how essential it is to keep up with the changing times. Right now, that means paying attention to trends like data-driven decision making, cloud-based communication, and more robust supply chain management. 

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