The Role and Impact of Technological Advancements in Supply Chain
From the desk of Mr. Siddhaarth Suri, Head – growth (sourcing)
Supply chain management is the heart of any business. It is a diverse business process
that oversees multiple functions like procurement, warehousing, inventory, logistics,
and delivery. When it comes to the fresh food industry, its importance increases multifolds.
Right from the point when fresh produce is ready for sale, the clock starts ticking.
Typically, fresh produce spends, on average, half its shelf life in transit. That is where
technology plays a crucial role. It addresses the significant challenges of high food
wastage, time spent in delivery and logistics, and keeping the quality intact. It is always
a race against time!
Digitization, Automation, and Artificial Intelligence have a significant role in supply
chain management. This blog highlights areas where technology had the highest
impact on the SCM cycle.
Smart Warehousing
Technological advancements in the fresh food industry would ensure product safety
and reliability while reducing wastage and improving accuracy. The automated
temperature control packhouses, controlled atmosphere rooms, and quality
management systems have taken warehousing to the next level.
Intelligence and Insights
In today’s world, data is the key. The increased visibility can help in improving the shelf
life of the product. Data analytics and intelligence can help enterprises develop in-depth insights into what is causing food wastage and loss. ERPs can help in Labelling,
Production Scheduling, Lot Tracking & Monitoring, and Billing. The advent of
technology and automation has made the industry more agile.
Temperature Control Technologies
The fresh food industry runs on health and safety. No manufacturer or retailer would
like to get involved in safety issues because of ineffective supply chain management.
Technologies like atmosphere control warehouses, RFID tags, real-time GPS tracking,
and passive monitoring can help in reducing wastages and loss.
Reduced Operating Costs
The cost of operations defines the health of any business as it impacts the bottom line.
Automation of the supply chain can expedite the speed to market for the product.
Logistics and Travel
The more time a fruit spends traveling, the less likely it is to be in its original state. In
addition, consumers look for products with maximum shelf life remaining. Technology
can assist here. It can help improve trackability, visibility, and delivery management.
Lot-based tracking can help in identifying the number of days remaining for expiry.
Reducing touchpoints with the help of technology can help in expediting the
operations.
To conclude, digitization has made in-roads in every industry. With the pace at which
technology is moving, those who do not adopt it right now might fade away in the
future. With trends like metaverse coming into play, it will be interesting to see how
the industry will change its business models and operations.
