The food industry has faced three years of unprecedented challenges, disruptions, and uncertainty that have threatened our businesses and negatively impacted food production. First, the COVID pandemic disrupted everything. Now, we’re still dealing with COVID’s repercussions, including product shortages and supply chain interruptions. Global food exports out of Ukraine (including 9.5 million tons of grain) are stalled due to the ongoing war with Russia. Climate change is destroying traditional farming, creating an immediate need for alternative, more sustainable options. And inflation has soared this year, impacting the price of everything, including food, rent, and gas. But it looks like things will (finally!) improve in 2023 – thanks in large part to technology.
Here are eight predictions on how tech will drive positive changes in the coming year:
- Tech will help us overcome our biggest challenges. In the past, technology has been viewed by some as a luxury in the food industry. Now, it’s a necessity for food businesses of all sizes. The pandemic – and its challenging aftermath – have amplified the need for digital tools and the industry is, thankfully, adapting. Today’s tech solutions are affordable, accessible, and user-friendly. All food brands should be leveraging these essential tools to gather data, identify risks, boost key metrics, and elevate all aspects of their operations.
- Boosting accuracy will increase other key metrics. Integrated software boosts accuracy, which will, in turn, improve other important metrics, including revenue, safety, quality, compliance, customer loyalty, and more. Tech tools can improve the way you plan, track inventory, monitor customer preferences, and anticipate upcoming needs. Tech tools can also help you determine if (and why) errors are rising at certain locations. That way, you can pinpoint the causes and resolve them through corrective actions like increasing training, adjusting processes, etc.
- Sustainability will be a priority. Climate change is putting traditional farming methods at risk, and we’ll need to prioritize alternative, more sustainable options. For instance, extreme weather has been ruining traditionally-grown crops globally. In 2023, we’ll focus on new, sustainable ways to grow food. For instance, vertical farming grows crops indoors, in controlled environments that ensure the proper temperature, light, humidity, and watering conditions and avoid threats like extreme weather and pests. This approach allows crops to be grown more efficiently and sustainably, resulting in higher yields – all while cutting water usage by up to 95%. Vertical farming relies on tech – including machine learning and robotics – to improve traditional farming, increase sustainability, minimize risks, maximize output, reduce food deserts, and prioritize safety.
- We’ll boost transparency throughout the supply chain. A new traceability rule goes into effect in January 2023, as part of the Food Safety Modernization Act (FSMA) and the FDA’s New Era of Smarter Food Safety Initiative. This regulation requires certain food businesses (including harvesters, processors, and distributors) to elevate their record-keeping to ensure more comprehensive, consistent, end-to-end food traceability. Tech tools will boost traceability, transparency, safety, quality, accuracy, and consistency throughout the supply chain. While organizations will have three years to comply with the new regulations, many businesses will wisely start using digital solutions in 2023 to seamlessly organize, track, manage suppliers’ safety and QA certifications.
- Auditing will feature a “combo” approach. The best thing to come out of the pandemic is our new approach to auditing. During the height of the pandemic, traditional, in-person, third-party inspections largely stopped, due to travel restrictions and other COVID protocols. But the food industry is resilient, and pivoted to remote audits, where employees worked collaboratively (and virtually) with auditors to conduct inspections, look for infractions, and take corrective actions. Brands saw many benefits to this new, virtual approach. First, employees felt empowered to resolve issues and problem-solve, leading to safer facilities. Additionally, remote audits were significantly more cost-effective, and could therefore be conducted more frequently. Operators also implemented frequent self-assessments out of necessity. Moving forward, we’ll rely on this combination approach (in-person, remote, and self-assessment) for more frequent audits, leading to continuous improvement.
- Tech will help lessen the labor gap. The labor shortage is expected to ease in the new year. We’ll also see tech innovations, including AI, machine learning, and automation, make daily tasks more efficient, accurate and safe. In some cases, tech solutions like Flippy the Robot will replace human workers, further easing the labor shortage that food businesses have been battling for years.
- Brands will prioritize staff retention. Even if the labor shortage eases in the new year, it’s still critical for brands to prioritize their employees and work to retain them. Tech will be instrumental to this effort. For instance, digital solutions will make daily tasks – like line checks and other safety inspections – faster and more efficient, allowing employees to complete these assignments quickly (and properly). Additionally, scheduling software will ensure that employees are getting their preferred shifts and aren’t being overutilized, which could lead to burnout. Brands will use competitive wages and attractive benefits packages (like tuition reimbursement, gym memberships, more PTO, innovative tech tools, etc.) to maximize staff retention.
- Training will become more collaborative. Typically, during training, managers tell employees what to do, and employees do it. Now, it will become more common to explain why the rules are in place, so employees will understand the importance and be more likely to comply. Employees will be encouraged to ask questions and point out infractions, so any potential risks can be immediately mitigated. Also, brands will build collaborative cultures, empowering employees to take responsibility for – and ownership of – safety and quality programs. When employees feel like “we’re all in this together,” they’ll work harder to uphold the highest safety and quality standards. Use tech tools to provide information, amplify training efforts, give updates, and reinforce knowledge.
While things have been disruptive, challenging, unpredictable, and downright nerve-wracking over the past few years, we are poised for some positive changes in 2023. The common denominator around these hot trends is technology, which will help drive improvements in the new year. Implementing an integrated tech stack will be the most important thing that your brand can do to maximize successes next year and beyond.
