Majority of Food Brands Still Rely on Email and Spreadsheets, Report Finds
Despite 82 percent of companies citing technology adoption as a top business priority, 69 percent still rely on manual systems.
A new report from TraceGains highlights that despite the increasing economic pressures, compliance challenges, and material shortages, many food and beverage brands are struggling to modernise their supply chains. This lack of modernisation puts them at a disadvantage as they face these escalating obstacles, potentially impacting efficiency and long-term sustainability.
The research indicates that 60 percent of food and beverage businesses are currently facing significant challenges in completing their digital transformation journey. These companies are facing challenges in advancing beyond the implementation phase, hindering their ability to fully integrate modern technologies and processes. The primary barriers include the complexity of integrating new systems with existing operations, resource constraints that limit their ability to invest in the necessary tools and expertise, and reliance on outdated consulting models that fail to provide the guidance and flexibility required in today’s fast-evolving market. As a result, many F&B companies are unable to unlock the full potential of digital solutions, which limits their ability to enhance efficiency, streamline operations, and respond to growing market pressures.
“The clock is ticking for food and beverage brands plagued by outdated ERP software and slow-moving consulting models that no longer serve the needs of today’s market. Our latest research confirms a shifting mindset from outdated playbooks to modern solutions capable of delivering impact right away and deployed in weeks, not months.” Says Paul Bradley, Senior Director of Product Marketing at TraceGains.
Almost one-third of businesses recognise that their operational methods are ‘inadequate and inefficient.’ Furthermore, 24 percent of leaders expressed their intent to prioritise technology investments to meet regulatory requirements. Additionally, 62 percent highlighted broader economic instability as a significant concern impacting their business strategy.
A notable shift in purchasing behaviour is occurring, with companies now placing greater emphasis on usability and fast deployment rather than traditional ROI metrics.
“The industry is facing continued disruption from multiple directions, and companies need the ability to undertake rapid change,” said Bradley. “Reacting to ingredient, processing and transport costs, managing material availability challenges, responding to regulatory shifts, fending off competitive threats and handling geopolitical factors all demand agility. Companies need to be able to reconfigure supply networks and reformulate and repackage products faster than ever before.”
About 57 percent of leaders identified process efficiency and the speed of implementation as their primary drivers for adopting new tools, whereas just 22 percent considered cost the most important factor.
