Oct 10, 2023

One of the largest industries in the global economy, food and beverage production has seen constant changes in an ever-changing world. With these changes comes a constant challenge of handling the supply chain: in particular, the ability to track products throughout the process. This visibility can help companies within this industry collect asset data and work towards solutions towards less waste and more profitability.

Artificial intelligence (AI) is a newer technology that can help transform the food and beverage industry. Amidst some of the different ideas it has presented, such as developing new food products or creating new personal marketing campaigns, AI is being discussed as a solution for supply chain visibility within food and beverage production.

The question that needs to be asked then, is how does AI help?

Let’s first take a closer look into what problems are presented when it comes to food and beverage visibility within the supply chain.

Presenting the Problem: 3 Challenges in Visibility with Food and Beverage

Visibility challenges in the food and beverage industry can be incredibly difficult to navigate. Companies operating in this space have to deal with a wide range of issues that can make it difficult to maintain visibility and stay above the competition. As a result, these three problems arise for food and beverage companies:

1. Tracking and Managing Inventory – One of the biggest challenges in maintaining visibility in the food and beverage industry is supply chain management. With so many different suppliers, distributors, and retailers involved in the process, it can be difficult to keep track of where products are coming from and where they are going, all while meeting high consumer demands. This can be especially challenging in cases where certain ingredients or products are sourced from different countries or regions.

2. Rules and Regulations – Updated rules and regulations are also a major challenge for food and beverage companies. This includes everything from food safety to labeling requirements. It can be difficult to stay compliant and avoid penalties as a result. This is, in particular, true in cases where companies operate in multiple jurisdictions, as there are often different regulations and standards that need to be followed depending on where products are being sold.

3. New Technology – New technology, for which AI would be included, is also playing an increasingly important role in the food and beverage industry. These new emerging technologies also bring the need for companies to be able to adapt quickly to stay competitive. This can present harder challenges in cases where companies are dealing with legacy systems or outdated technology that can be difficult to replace. Training employees to handle new technology can also create problems with pre-existing workflows and cause downtime or costly mistakes.

So, how does AI step in and try to alleviate some of these challenges?

Creating the Solution: 5 Benefits of AI Implementation and Usage

The benefits of AI technology in food and beverage production are numerous and can ultimately lead to better solutions across the board. These include increased efficiency, reduced costs, improved accuracy, enhanced product quality, and increased safety. Here are five of the most important benefits of using AI when it comes to a company’s supply chain visibility:

1. Better Product Production – The production process needs to remain at a high level with food and beverage, and AI can help automate and facilitate this process. For example, AI can be used to calibrate machines and equipment to ensure that they are producing products that meet the required specifications. This is especially important in the food and beverage industry, where small variations in the production process can have a significant impact on the quality of the final product. By using AI to monitor and control these processes, manufacturers can reduce the risk of errors and ensure that their products are consistently of high quality. 
2. Elevate Resource Optimization – Manufacturers cannot afford to waste time or resources. By analyzing data from production processes, AI can identify areas where resources are being used inefficiently. This information can then be used to adjust the production process to reduce waste and improve efficiency. For example, AI can be used to optimize the use of water in food and beverage production, which can help to reduce costs and minimize the environmental impact of the production process. 
3. Improve Product Quality – The quality of products cannot be stressed more with food or beverage, and AI can help make sure products meet industry standards. For example, AI can be used to monitor the production process in real-time, identifying any potential issues before they become a problem. This can help to reduce the risk of contamination or other safety issues, which can have serious consequences for both consumers and manufacturers. AI can also be used to monitor the quality of raw materials and finished products, ensuring that they meet the required standards and are safe for consumption. 
4. Upgrade Production Efficiency – AI can automate certain tasks and processes and can help to reduce the time it takes to produce products. This in turn can help to increase productivity and reduce costs. For example, AI can be used to automate the packaging process, which can help to lower the time it takes to package products and better the accuracy of the packaging process. 
5. Boost Customer Experience – At the end of the day, consumer satisfaction is a major part of the supply chain. By analyzing data on customer preferences and behavior, AI can help manufacturers to develop products that better meet the needs and expectations of their customers. For example, AI can be used to develop personalized products that are tailored to individual customer preferences, which can help to improve customer loyalty and satisfaction.

Confidence is continuing to slowly rise in AI as it becomes a solution in the food and beverage industry. Creating solutions custom fit for each business is just one of the many things we do here at Heartland. What problems are you looking to solve for your team? Let’s learn together and start the conversation today.