Legacy Systems Face Unwelcome Feedback in TraceGains Survey Results
** Food and Beverage Brands Struggle with Digital Transformation **
Despite worries over economic uncertainty (62%), a majority of food and beverage companies are facing difficulties transitioning to modern digital processes, according to a survey by TraceGains.
The study reveals that 69% of these brands continue to rely on outdated manual practices, emphasizing complexity (40%) as the main reason for the delay. In addition, 55% of the surveyed companies admitted to falling short or being partially automated and optimized.
Just 6% report having "fully integrated" digital solutions, while a staggering 60% admit they are still midway through the implementation process. Furthermore, 29% acknowledge that their current management methods are inadequate and inefficient, causing internal challenges.
When asked about their concerns, 62% of food and beverage leaders cited broader economic issues, while 23% pointed to ingredient and material availability problems and their impact on innovation and new product development. Moreover, regulatory concerns were also mentioned, with 24% indicating they would accelerate the purchase of new technology if it were necessary to meet a mandate.
Despite these hurdles, 82% of companies consider implementing new technology a top business priority, outpacing other strategic initiatives. To speed up digital transformation, 57% prioritize improved process efficiency and the ease and speed of implementation. Additionally, 52% would likely invest in new technology if it provided immediate operational improvements, placing it above return on investment (34%) and overall cost (22%). However, for 40% of respondents, perceived complexity and implementation challenges proved the biggest barriers to adopting new tools, overshadowing even cost concerns.
In terms of solutions for digital transformation, some key areas include automation, artificial intelligence, blockchain technology, augmented reality, advanced fast-food technology, and emphasizing speed and simplicity over traditional ROI metrics. These strategies aim to improve operational efficiency, enhance consumer engagement, provide tamper-proof product tracking, and streamline workflows to better meet changing market demands.
- The food and beverage industry, like other businesses, is prioritizing digital transformation, with 82% considering new technology implementation a top business priority.
- To facilitate this transformation, many companies in the food and beverage sector are exploring solutions such as automation, artificial intelligence, blockchain technology, augmented reality, and advanced fast-food technology, focusing on efficiency, consumer engagement, and simplified workflows.
