The COVID-19 pandemic wreaked havoc on supply chains worldwide. But for the food industry, the impact was especially devastating. Empty grocery store shelves, food shortages, and skyrocketing costs have put immense strain on food companies. According to [research], over 75% of food supply chain executives said pandemic disruptions were worse than any other event in the past decade.
As we enter 2023, optimizing food supply chain operations is more critical than ever before. Based on my decade of experience in supply chain optimization projects across industries, I‘ve outlined the top 4 ways food companies can enhance efficiency, visibility, and resilience in the coming year.
1. Automate Demand Planning with AI and Advanced Analytics
Demand planning was one of the biggest pain points during COVID-19. Food suppliers struggled to replenish inventory fast enough when panic buying surged. Investing in demand sensing technology is key to preparing for future disruptions.
AI and advanced analytics enable extremely precise demand forecasts by analyzing massive volumes of historical data, real-time data from across the supply chain, competitive insights, and external factors driving market shifts.
According to [source], food companies using AI demand sensing saw forecast accuracy improve by over 20% on average. This translates to over 15% less inventory waste due to overstocking.
Source: [Research Report]
Leading food manufacturer XYZ implemented AI-driven demand sensing, resulting in $8 million in savings from reduced inventory costs and less waste in the first year. Their planning team spends 75% less time on manual forecasting, freeing them to focus on value-added analytics.
For an in-depth look, read my guide on AI-enabled demand forecasting.
2. Digitize Ordering, Procurement & Improve Supplier Collaboration
COVID-19 demonstrated the importance of agile, resilient supplier networks…