In the world of food and beverage (F&B), technology fluctuates for one reason. Because business is changing. Why does business change? This is because consumer needs and preferences change.
All these fluctuations are creating a more complex F&B ecosystem, making it nearly impossible to design a perfect supply chain.
“A ‘perfect’ cost-driven supply chain is too fragile,” emphasizes Marc Simony, head of product strategy at TraceGains. “There will always be confusion. There will always be gridlock. Instead of trying to make your supply chain perfect, you should focus on making it easier to manage so you can minimize risk and operate despite disruptions.”
Move Over, new product development… There is a new way to innovate
As market competition intensifies, consumers become increasingly concerned about their health, and environmental, social, and governance (ESG) initiatives drive ideas, F&B companies have the following choices: Are long-established approaches to new product development here to stay, or is it time to try something new?
new Product Development: A General Approach
Historically, new product development has been driven by a single internal team working in a vacuum (with little or no input from third parties) to brainstorm, develop, and test new concepts.
Expensive and time-consuming Product Lifecycle Management (PLM) platforms are used to manage critical product data. designed by engineer for For engineers, these platforms are built to manipulate information, not connect users to real-time data, so they can make decisions based on valuable insights.
New product development has been handled this way for decades, but siled data management and a lack of agility have resulted in longer bench-to-sale times and missed opportunities to respond to trends and insights.
networked Product Development: An Innovative Approach
The future of F&B is not here new Product Development – That’s It networked Product development.
Today, new product development is a collaborative, integrated effort that moves in a complete 180-degree direction. F&B companies are collaborating with suppliers, third-party experts and even consumers to improve ideas and developments. This collaboration must be powered by connected data that accelerates, informs, and automates processes.
Because many PLM platforms cannot support timely collaboration, the foundation for networked product development is: A product innovation platform that goes far beyond formula and packaging data management.
Better, faster innovation through coordination and connection
From concept to production, the core of networked product development is coordination and connectivity. Drive automation over manual processes for faster, better innovation at every step, from recipe iteration to claim verification. As a result, this approach accelerates ideation, allowing F&B brands to get to market faster with more innovative and trend-responsive products.
Because networked product development is changing the way F&B businesses operate, it also changes the technologies needed to support product development. F&B companies need a product innovation platform to complement PLM.
Collaboration Priorities
Networked product development takes place in a multi-user environment that encourages the entire organization to participate in the process.
Instead of working in siled systems, brand partners, quality experts, regulatory experts and formulation experts should be able to work together on an integrated platform.
Ensure data flow
Network product development prioritizes strategic, organization-wide initiatives such as idea management, product strategy, sourcing and cost management, and overall supply chain transformation.
To enable collaboration and automation, the real-time data that supports these efforts must move seamlessly between different people, processes, and systems. These interconnected information flows allow users to track products throughout the innovation lifecycle, from design and development to production.
Test in a virtual environment
Instead of experimenting in real life, production innovation platforms can help F&B companies build and test recipes virtually using data provided by third parties and suppliers.
“There’s a lot less waste in the ideation process because you can come up with multiple versions of a recipe and do all of that before going to the bench,” says Simony.
From allergens and marketing claims to ingredient swaps, you can see how experimental formulations perform based on the products available, and you can do this without contacting suppliers or spending time actually manufacturing the product.
Once you’re sure your product is perfect, you can confidently connect with the suppliers you want to work with and take to the bench.
Improved sustainability
Access third-party data to perform and report on product life cycle analysis with the click of a button. “This allows us to speed up the decarbonization of our products by instantly revealing our carbon emissions and Scope 3 emissions,” explains Simony.
Instead of collecting external data, ESG information moves seamlessly through the business ecosystem, making work more efficient and risk-free.
Understand current and potential suppliers’ positions on ESG issues using real-time data on:
Supplier Sustainability Ranking Participating in initiatives such as CDP, UN Global Compact, and SBTI
emission measurements Detailed emissions analysis for scope 1, 2 and 3 emissions
Regional Impact Score Comparing the carbon intensity of different energy grids
Collaboration in product development equals resilience
However, a single disruption (such as an inability to contact a supplier or a shortage of a specific ingredient) can disrupt some F&B supply chains. But companies that drive collaboration and automation, and practice networked product development, are better prepared to address these disruptions.
“You may have to deal with more disruption today,” says Simony, “but with the right technology, you will be able to put in place the right relationships and strategies to keep innovation moving forward.”
To learn more about how to overcome the most common challenges in CPG, visit TraceGains.com.
