For the past few decades, the food and beverage industry is constantly growing and in constant flux due to ever-changing trends in consumer behavior and government regulations. This creates significant challenges in inventory management, supply chain, and compliance with regulatory norms for food safety and quality.
Inventory management is an important part of this industry and managing the inventory is critical for a business to succeed. But, inventory management is not easy due to the perishability of the products, consumers’ shift towards healthier (minimally processed, whole grain) and organic products (without preservatives and additives). Allergies and intolerance for particular ingredients are other major problems faced by the industry when it comes to managing inventory. Consumers are sensitive to particular ingredients so it is necessary to adopt storage methods that help in minimizing cross-contamination.
According to The Food Industry Association (FMI), by 2022 consumers could be spending $100 Billion a year on online grocery. Also, food manufacturers and retailers are admittedly not prepared to meet the needs of digitally engaged food shoppers. In the past decade, we have seen a rise in online grocery shopping (with recent innovative ideas like meal kit delivery).
When it comes to regulations, the food and beverage industry is one of the strictest. Businesses need to be constantly vigilant to comply with the periodical changes in the FDA rules. A major step was taken during the Food Safety and Modernization Act (FSMA) 2011, to ensure the food supply (for humans as well as animals) is safe by shifting the focus to preventing the contamination of the food rather than responding to it.
There is a growing demand from consumers and regulators to label the ingredients, allergens in detail. Due to this, there is a need to track product ingredients throughout the value chain. Growing environmental and ethical concerns has forced suppliers to go for environment-friendly packaging materials and ethical treatment of animals.