A year ago at this time, I carefully drafted a blog of predictions for 2020 in the consumer products and food & beverage industries. Never in my wildest dreams did I envision what would unfold next.
Can 2021 Get Any Crazier?
It’s the new year, but we are still on the roller coaster ride begun a year ago: many are working from home, kids are doing school online, the pandemic rages on and vaccines are being delivered, but slower than anticipated. Keep those seat belts tightly fastened.
Without going too far out on a limb, I’ve assembled predictions for six areas sure to be hot topics in the consumer products and food & beverage industries. See my full article with a deeper dive into these predictions on VM Blog here.
- Online Shopping: This one’s easy. Even before the pandemic, online shopping for consumer products had been increasing year over year. In 2020, online shopping for food soared by 60%. This market will undoubtedly continue to grow.
- Manufacturers’ E-commerce Businesses: Similarly, manufacturers are joining the e-commerce trend, creating their own online sales platforms, and selling their products independently. They will need infrastructure, processes, flexible and adaptive enterprise systems, and a complete Sales and Operations Planning process.
- In-store Promotions: When enough consumers have been vaccinated and feel safe to shop in-person again, the retail industry will continue the trend from the past few years of offering in-store promotions. Manufacturers will need more robust supply chain management and inventory control to remain nimble.
- Digital Transformation: The predictions of early 2020 regarding digital transformation and advanced technology still hold true. Manufacturers need to embrace the IoT, smart automation, Industry 4.0, and 3D printing in ways that make sense for their businesses. They will survive with flexible, adaptive technology solutions and advanced digital systems combined with proven industry best practices, such as QAD Adaptive ERP, to stay ahead of the competition.
- Food & Beverage Manufacturers’ Investments in Technology: While food & beverage manufacturers might not adopt technologies that do not impact operations as quickly as some, forward-thinking processors will continue to look into Direct Technology: equipment that is part of the manufacturing process (such as a mixer or shrink-wrap machine); plus Indirect Technology like software systems (ERP, Demand and Supply Chain Planning, Quality, etc.). Agility and efficiency remain critical to the bottom line.
- Sustainability and New Agricultural Practices: It’s one of the hottest topics across the manufacturing spectrum. Sustainability requires new initiatives, and in food & beverage this could mean combining regenerative agriculture and precision agriculture, to provide a long-term solution by combining environmental and farm science with technology. Both systems require new technology, such as GPS services, guidance systems, mapping tools and variable rate technologies (VRT) to optimize crop yields.
No doubt we’re hoping for far less disruption and a return to normal in all facets of daily life. Predictions are easy to make, harder to see come true.
