Digital transformation is an imperative, continuous and irreversible trend due to the constant change of technology, customer needs and market trends.
Many businesses in the industry must adapt quickly and flexibly to new technologies and processes, as well as train and build the right motivation for each individual in the organization to be ready to respond to challenges and Seize development opportunities in today’s digital era
The purpose of digital transformation is to strengthen the core competencies of the business & uncover new opportunities by transforming people, systems or processes. Digital transformation benefits include operational excellence, enhanced customer experience, and the creation of new business models
The following are digital transformation trends in the food manufacturing and processing industry, allowing businesses to respond more quickly to changes and creating a foundation for continued growth in the future:
1. Factory of the Future
Future factory solutions help the leadership team significantly improve their ability to evaluate and control the entire production and business process closely; at the same time monitor production areas and employee productivity to promptly make important decisions to adjust and improve the operation of the enterprise comprehensively.
Smart factories are also an important link in connecting with supply chain participants, creating transparency in information exchange and origin of input materials. With real-time analysis of market and supply and demand data, companies gain the ability to source materials faster along the supply chain, boosting production efficiency and delivering on-demand delivery. of the market. In addition, new technologies are supporting precise production and efficient use of ingredients and processing materials, thereby minimizing waste and ensuring safe, regulatory-compliant production operations. current food safety.
2. Transparency about the origin
The food production and processing industry is one of the industries with the most stringent requirements in terms of quality, transparency in origin, due to its direct impact on human health.
The process of food traceability involves tracking the history of a product and sharing that data throughout the entire production and processing process from farm to factory to consumer. When it comes to food, knowing exactly where the raw materials come from is important, especially for raw food production, processing and consumption. In addition to the regulations of the governments of the countries for the quality and origin of products, consumers themselves also set requirements for nutrition, sustainability, and environmental friendliness of products. Typical are European countries, where they are willing to pay more to buy organic food.
Vietnam’s entry into the global supply chain by actively participating in free trade agreements also poses a transparent problem of origin for businesses in the food sector. Only by ensuring this factor, Vietnamese food can be accepted and expanded on the world map.
3. Supply Chain Optimization
A strong supply chain is vital in times of crisis and a big plus in the new normal. The COVID-19 epidemic began to entail a series of changes in business processes, supply chains, and relationships with customers. These changes must be made quickly and flexibly. Through digital transformation, supply chains can be linked and expanded into a flexible and sustainable system – with the help of modern IT systems.
Today, implemented digital solutions offer many opportunities for businesses to recognize market needs accurately to optimize production, such as in relation to product range, price or customer segment. Thanks to digital technology, data is aggregated, analyzed and evaluated in real time. This allows businesses to promptly recognize trends, accurately forecast demand, improve cooperation with suppliers, thereby increasing efficiency and shortening time to market.
4. Link, enhance the consumer experience on all channels
Isolation or social distancing during the outbreak of the pandemic has drastically changed consumer behavior, making them appear more and more on e-commerce platforms or social networks – where they also want to be taken care of, welcome.
With Omni-Channel (Omni-Channel)(6) solutions, you can easily market, sell, reach and serve your customers across different sales channels – regardless of the customer where, what channel are using on online or offline platform. This helps businesses ensure a seamless, consistent customer experience across all channels, thereby retaining customers and increasing the number of new customers, resulting in increased sales.
Just selling products today is not enough, customers also want to experience personalized products and services. Fortunately, the development of technology has made it possible for people to process large amounts of data through the use of innovative IT solutions, especially those with integrated artificial intelligence (AI). Artificial Intelligence). This allows businesses to have an overview of user behavior and habits, thereby creating personalized product and service lines for their customers.
5. Acceleration in E-commerce and D2C Strategy (Direct-2-Consumer)
Currently, many people, especially the younger generation or busy people, shop more online instead of going to stores or supermarkets. That is why the expansion and acceleration of e-commerce is central to the development strategy of many food manufacturing and processing enterprises.
With a D2C(7) strategy – direct to consumers – products are sold or marketed directly from the producer to the consumer. The basis for the success of a D2C strategy is data and the analysis and use of data. Digital transformation allows businesses to collect these data themselves, from which they can better understand their target customer groups through analyzing consumer behavior data, and make business decisions at the same time. business in a timely manner without resorting to external platforms or a third party.
6. Training employees on digital transformation, building corporate culture 4.0
One-sided digital transformation helps to digitize various company processes, thereby improving operational efficiency. On the other hand, these process changes can pose challenges for many employees. The reason may be due to the limited access to technology of the workforce, which requires time and patience when getting used to and using new technologies. Therefore, organizing internal digital transformation training programs for all employees is an important task of the enterprise, determining the success or failure of digital transformation. The process of transforming people with the goal of building a 4.0 corporate culture will promote creativity and innovation associated with technology, helping businesses have sustainable human resources in the digital transformation journey.
