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Solving the technology crossword in fresh foods

by Brian Baker, Jagadish Upadhyaya, Nithya Swaminathan
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2 minute read 03 August 2020

Solving the technology crossword in fresh foods The future of fresh

2 minute read 03 August 2020
  • Brian Baker United States
  • Jagadish Upadhyaya India
  • Nithya Swaminathan United States
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When technology is at the very core of business strategy, fresh food companies can be agile in the time of fast-shifting needs.

Deloitte’s recent survey of US fresh food producers and retailers revealed they’re implementing a spectrum of technologies1 and, they’re implementing more basic technologies than advanced (see figure). We found that while 8 out of 10 companies have fully implemented on-farm automation, quality sensors, and advanced cold-chain management, implementation of big data and analytics, digital price tags, and artificial intelligence (AI) is low. But does aggressive implementation of advanced technologies guarantee growth and success?

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Survey findings also revealed that effectiveness of technology implementations can only be determined by how well technology is integrated in core business strategy. We compared the percentage of revenue from fresh foods and the annual budget for technology and supporting processes and calculated companies’ effectiveness in applying technologies to fresh food operations—enter “Leaders” and “Learners” of the technology maturity curve. While both Leaders and Learners matched in their implementation of basic technologies and were in early stages of adopting advanced technologies, there were nuanced differences. Leaders had a more integrated approach—they had smaller, centralized, and efficient teams to manage their focused investment in fresh food technology. Also, they focused their efforts on fresh foods than on a diversified portfolio.

Based on current market conditions, it will likely become increasingly important for fresh food producers and retailers to identify and invest in technologies to improve efficiency and the ability to respond to consumer needs quickly. For example, digitizing the core operational processes can pave the way for easier implementation of AI-based warehouses and smart supply chain management technologies, helping companies derive decisive insights through data analytics and much more. Technology can be instrumental in helping fresh food companies predict and model various demand scenarios and shorten response time. In an unprecedented business environment such as today’s, with spikes in demand within certain categories and not others, being nimble can be a foundational requirement to survive and thrive.

Acknowledgments

The authors would like to thank Kavita Saini, manager, Deloitte Support Services India Pvt. Ltd.

Cover image by: Viktor Koen

Endnotes
    1. Barb Renner et al., The future of fresh: Strategies to realize value in the fresh food category, Deloitte Insights, November 12, 2019. View in article

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Consumer Industry

Consulting Services for Consumer Products

The consumer products industry today faces virtually unprecedented challenges and opportunities. Eroding brand loyalty, increased merger and acquisition activity, enduring recessionary consumer attitudes and the rising influence of digital technologies on shopping behavior all threaten traditional business models–but also give rise to new and exciting ones. In the face of changing consumer needs and behaviors, Deloitte’s Consumer Products team is working with clients to strengthen analytics, improve internal operations and develop new market-facing capabilities and channels. With experience across a wide range of sectors–including food and beverage, personal and household goods, agribusiness, apparel and footwear, and household durables–we position our clients to lead in the face of change. 

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  • Barbara L. Renner
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  • Deloitte Tax LLP
  • brenner@deloitte.com
  • +1 612 397 4705

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Brian Baker

Brian Baker

Managing Director | Retail and Consumer Goods

Brian is a managing director in Deloitte’s Retail and Consumer Goods practice, Deloitte Consulting LLP. His experience includes process design and evaluation, program assessments, systems implementation, managed services, and value delivery programs. Brian’s career experience covers multiple retail areas including: inventory management, procurement of both perishable and non-perishable goods, replenishment/allocation, promotional planning, pricing, third-party logistics, and import procurement. In addition, Brian has more than 15 years of store management experience, focusing on perishable departments. Brian has worked with leading national and regional grocery retailers in the areas of process redesign, supply chain solution implementation, SAP, and JDA software packages. He has additional experience with direct store delivery, scan-based-trading, open-to-buy management, hard lines, importing, and store operations.

  • brianbaker@deloitte.com
  • +1 785 580 8812
Jagadish Upadhyaya

Jagadish Upadhyaya

Research & Insights Manager – Consumer Products | Deloitte

Jagadish Upadhyaya is a manager at Deloitte Support Services' Consumer Industry Center and supports research for the consumer products sector. He has over 15 years of experience conceptualizing and designing research projects, project management, and advanced statistical analysis. Upadhyaya has rich experience writing high-impact thought leadership backed by detailed research and analytics. He has led client-specific multidisciplinary market research teams focusing on the analysis of real-time market data and identifying trends in the consumer products and retail space.

  • jupadhyaya@deloitte.com
  • +91 99890 22430
Nithya Swaminathan

Nithya Swaminathan

Chief of staff

Nithya Swaminathan is a senior manager and chief of staff at Deloitte’s Consumer Industry Center, Deloitte Services LP. She is focused on developing and operationalizing the consumer research agenda that spans across retail, consumer products, travel, hospitality, and auto sectors. She has more than 13 years of client-service experience at Deloitte Consulting, helping some of the largest brands in retail and consumer products leverage innovative solutions to become insight-driven organizations.

  • niswaminathan@deloitte.com
  • +1 312 486 1458

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