Monitoring your supply chain from farm to fork is critical to the success of any food shipper and their providers. But why is end-to-end, real-time visibility the holy grail for the modern food shipper of today?

Monitoring in-transit temperature and location of food and beverage shipments can reduce excursions, ensure product quality, and improve on-time and in-full deliveries. To delve deeper into the benefits and approaches in supply chain digital transformation, FSA’s official magazine Food Chain Digest partnered with Tive, an end-to-end shipment visibility technology provider, to produce the new Food Shipper’s Guide to Food Chain Digital Transformation.

To order your FREE copy, visit FoodShippers.org, select ‘Resources’ in the drop-down menu, and click ‘FSA Whitepapers.’

This guide is based on original research from responses, experiences, and best practices by more than 100 food shippers and their third-party logistics providers. All participants were qualified as having responsibilities in corporate management, logistics, supply chain management, Operations and Food Safety/Quality Assurance. Approximately 45% of all participants represent a company within food production, distribution, and retail, and another 26% are with a food manufacturer, grower, or producer. In addition, 55% of the participants represent a 3PL or truck broker serving the food and beverage industry.

Pain Points That Give Food Shippers Indigestion

“Supply chains are riddled with risks in today’s complex global marketplace, ranging from temperature excursions and food safety issues to increasing regulatory pressures and food waste,” says Krenar Komoni, CEO and Founder of Tive. “Shippers are looking for real-time visibility in their supply chains and insights into their cold chain shipments to overcome these issues, create more efficiencies, and minimize waste.”

Four of the biggest supply chain operations challenges facing food companies today are freight market fluctuations/rising costs, global supply chain disruptions, supply chain collaboration and effectiveness, and cargo theft and fraud, according to responses by food shippers participating in the survey.

Many food companies are realizing that supply chain digital transformation is proven to mitigate supply chain risk and optimize efficiencies, but it’s a heavy lift to do correctly. It requires strong alignment between business and supply chain strategy and the ability to develop a relevant roadmap with the right supply chain goals aligned to business strategy. It also can require a tremendous effort by internal human resources (and among supply chain partners), as well as significant investments and shifts in technology.

Where Should You Invest?

While the benefits of investing in digital transformation are clear, to what degree are food shippers and their logistics partners investing in this area? Approximately 71% of respondents acknowledge that digital transformation of their supply chain and business operations is a priority in the next 12 to 18 months.

There are several areas in technology in which food shippers and 3PLs are investing (or planning to invest) in the next 12-18 months. These areas are:

Supply Chain/Shipment Visibility. Approximately 75% of respondents indicate this is an area of business in which they currently are investing in new technology to drive transformation. Interestingly, according to Tive’s State of Visibility 2024 report, approximately 78% of respondents indicate they are either currently investing or planned to invest in the next 12 months in IoT-based shipment tracking (53% currently using, 25% planning to invest).

Transportation and Warehouse Management. Market conditions and the need for speed and efficiencies are forcing food companies to rethink their existing tech stack and use of transportation management solutions. In fact, nearly 71% of aggregate responses indicate this is an area of business in which they are currently investing in new technology to drive transformation. Another 42% indicate that inventory and warehouse management are digital transformation areas in which they are investing.

Overall Data Management. To be efficient in supply chain management, there are many data points needing visibility – ranging from time in transit, carrier volume constraints and performance, accessorial charges and peak season surcharges to shipping volume by origin and destination, delivery exceptions, estimated delivery dates, and guaranteed service refunds. In fact, given the impact that overall data management can have in bringing efficiencies to supply chain management, 54% of respondents indicate this is an area in which they are currently investing. Another 42.5% indicate that they are focusing their digital transformation resources and budgets on decision intelligence via analytics and reporting.

Additional significant investment areas in digital transformation include: Inventory & Warehouse Management (42%), Supplier Relationships & Collaboration (41%), Traceability/Food Safety (36.5%), Route & Mode Optimization (31.5%), Sustainability/Reducing Emissions & Waste (27.5%), Cold Chain Management (22.5%), and Import/Export Operations (22.5).

Winning in the Digital Age

There are major benefits to real-time shipment visibility, including enhanced customer experience (CX), risk and theft reduction, enhancing visibility across all modes, and operational efficiencies. Despite these apparent benefits, achieving effective real-time visibility poses some challenges.

Food shippers cite technology integration, data accuracy, and high implementation costs as primary hurdles. However, the advantages to food shippers and their providers highlight the importance of overcoming these obstacles.

According to respondents in this survey, the primary benefits to real-time shipment visibility are: End-customer satisfaction, minimizing fees due to shipment delays, risk and theft reduction and security enhancement. Other benefits include enhanced end-to-end visibility across all modes and overall supply chain visibility, traceability and food safety support, shipping routes and mode optimization, and managing inbound shipments.

“We’re now investing in technology with a particular focus on the cold chain,” says Layne Fletcher, Vice President of Logistics & Supply Chain with Golden West Food Group, a major food manufacturer and distributor. “Digital transformation initiatives can have a positive impact on risk management, efficiencies, and customer service – all areas we are highly focused on.”

Looking for current benchmark metrics and more information on how to ensure your supply chain digital transformation is successful? Order your FREE copy of the Food Shippers Guide to Supply Chain Digital Transformation, visit FoodShippers.org, select ‘Resources’ in the drop-down menu, and click ‘FSA Whitepapers.’

Related Articles:

• 2023 Top Food Chain Tech List Announced by FSA’s Food Chain Digest
• Sam’s Club: Artificial Intelligence in Supply Chain
• Kraft Heinz and Microsoft Join Forces to Accelerate Supply Chain Innovation
• Aldi Tests Ecommerce Platform
• Leveraging Performance Data to Improve Transportation Procurement
• Supply Chain Planning: Your Path to Efficiencies, Cost Reductions

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