Virtually every industry is striving to become more efficient and sustainable—and these goals are particularly important in the food and beverage sector.
Streamlining operations, reducing waste, and decreasing carbon emissions are essential to feeding a growing global population, protecting limited resources, and fighting climate change. Nearly 40% of food and beverage sector decision-makers said in a 2022 International Data Corp. survey that their organizations would prioritize sustainability in the coming year.
These companies cannot achieve their sustainability objectives without undertaking the digital transformation of every aspect of the production process, from sourcing to manufacturing to distribution.
In the consumer goods sector, companies with advanced digital transformation strategies have cut greenhouse gas emissions, waste, and consumption of water and energy by up to half, according to Clarisse Magnin-Mallez, a managing partner at McKinsey & Company. By following a similar strategy of introducing the right talent and technology, food and beverage producers can both improve the bottom line through more efficient operations and contribute to global food security.
Digital Transformation Is the Path Forward
Digital transformation in the food and beverage sector can take many forms: adopting collaborative cloud-based platforms, updating to industrial internet of things (IIoT) infrastructure, and deploying artificial intelligence (AI) to refine processes and better understand customer needs.
Integrating digital technology allows organizations to collect and analyze data to support sustainability in areas that were once a black box. Gaining visibility into operations and consumer behavior now helps organizations calculate the precise quantities and types of resources they consume, which helps them better identify ways to reduce waste and use of energy and water.
Keeping the human element in focus is critical to the success of digital transformation initiatives. Team members who fear that digitization will render them obsolete can pose significant obstacles to implementation. Building a culture that empowers employees to see how digital tools can make their work easier and better and that ensures they learn the skills to use the new technology is key to bringing the workforce along on the sustainability journey.
As with many industries, the food and beverage sector is struggling with a shortage of skilled workers. Promoting emerging or newly adopted technology in job descriptions can help recruiters make their open roles more appealing to prospects looking for cutting-edge careers.
Three Sites Leading the Way
Food and beverage producers that want to innovate may be stuck on deciding how to move forward. Nearly 70% of industrial firms undergoing digital transformation programs report being unable to move past the pilot stage, according to LNS Research.
As pioneers in digital transformation in our own operations, Schneider Electric provides our know-how and experience to advance global sustainability by supporting industrial organizations embarking on similar efforts.
Digital transformation at three organizations in the manufacturing and food and beverage sectors illustrates how producers can embark on their strategies to plan, manage, and implement end-to-end transformation projects.
Smart Factory
In Le Vaudreuil, in northern France, a Schneider Electric plant that makes conductors, speed drives, and soft starters has transformed its operation into a smart factory.
After outfitting its machines with wireless IoT sensors connected to cloud-based digital analytics platforms, the factory unlocked data to help it improve its performance and sustainability, cutting its energy use and carbon emissions by a quarter and its material waste by 17%. Implementing a zero-reject water-recycling station monitored by a cloud-based AI model led to a 64% drop in the facility’s water use.
In 2022, the factory joined the World Economic Forum’s Global Lighthouse Network, which recognizes manufacturing facilities achieving efficiency and sustainability through innovation.
IoT-Powered Analytics
A 65-year-old plant in Lexington, Kentucky, that makes load centers and safety switches was the first Schneider Electric facility to become a global lighthouse, in 2021. By combining IoT sensors with power meters and predictive analytics, the factory reduced its energy use by more than a quarter, its water use by 20%, and its carbon emissions by 30%.
For this facility, sustainability went hand in hand with efficiency. The average time to repair fell by 20%, and system downtime fell by 5%. The plant’s investment in its digital transformation paid for itself within two years.
Roadmap to the Future
In March 2023, one of the world’s leading beverage companies launched a digital transformation and sustainability initiative.
The organization works with Schneider Electric’s Industrial Digital Transformation Consultancy Team to develop a vision and roadmap for becoming a “plant of the future,” laying the groundwork for a two-year implementation phase. Embracing innovation will help the company better serve customers and stay ahead of competitors while shifting to a more sustainable business model.
A Healthier Future Starts Today
Achieving digital transformation can be challenging. It requires the right technology, a cohesive strategy, a skilled workforce, and a conducive culture. By applying emerging and established best practices, food and beverage companies can make great strides toward creating a more efficient and sustainable industry.
There’s no time to lose. By undertaking efforts today to build the factories of the future, the sector will be better prepared to feed the world and support a healthier planet.
Learn how Schneider Electric’s Industrial Digital Transformation Consultancy Team can help your organization reduce its impact on the planet and increase its bottom line.