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Digital Transformation Of The Food Industry

by Doris Molina

The food industry is still experiencing difficulties in the industrial sector all over the world. This condition indicates that it is now exceedingly difficult to accelerate production growth using current resources, strategies, and processes. Food and beverage business leaders are at the hands of constantly evolving consumer preferences, global product prices, low-profit margins, and high demand uncertainty.

As business executives are struggling to deal with these many variables, they are also under pressure to improve operating performance, minimize costs, and distinguish their goods from their rivals. The food, beverage, and consumer packaged goods industry are an important industry with a special direct connection with customers, closely connected to public health and safety. Because of its relationship with plant and animal production, the Malaysian economy is one of the pioneering and imperative industries. Food, drink, and branded consumer goods producers in Malaysia are at the threshold of digitalization. Except in major companies in the sector, the digital technology rate is below the average for other industries in Malaysia.

What should we do?

• The digital transformation for food, beverage, and consumer packaged consumer business executives working under these obstacles and stresses is imminent. Digitalization provides cost and strategic benefits by making the supply chain available to firms.

• Business managers should launch digitization processes by setting strategic priorities in line with a particular target and specifically identify their systems before digital transformation.

• The adjustment of business staff to the new culture is almost as critical as the commitment of senior executives in digitalization. Although businesses are bringing digital expertise into the entire procedure, they can educate their current employees about the digitalization approach.

• Analyzing and using outcomes in decision-making processes, as well as collecting information, is critical for digital transformation. In the course of digitization, the food industry should consider having technical assistance.

Consumers are getting stronger

With increased market choice, customer preferences and expectations are continually evolving. New players have broken the conventional dynamics in the sector thanks to new technology that allows them to adapt far more easily to the requirements of clients. In other words, the control is now in the hands of customers. In a world where consumers are more competitive, the dominance of established labels has begun to diminish. To keep businesses from losing their market image, they have to invest in technology that actively tracks and anticipate what customers are thinking about online and on social networks. Investment decisions in digitalization would help to build a scalable and adaptive framework that can respond to rapid shifts in consumer preferences and behavior, improve operating productivity and control costs, and increase marketing efficiency.

Addressing New Customer Demands in the Legal Framework

As part of the Food Safety and Hygiene Laws, you can see MESTI certification, that you must first receive in Malaysia. Because of this credential, you can comply with the device specifications mandated by global standards, guarantee your quality within Malaysia, and be prepared for the global market at the same time.

ISO 22000 is an internationally applicable food production framework. If you are an export company, ISO is your first stop.

You may then register for certificates such as HACCP and GMP, which are compliant with ISO, and are recognized internationally and show the expertise of food industries in terms of both sanitation and processing standards and techniques.

Also, to adapt customer demands and sensitivities halal certification as well as to address new trend demands organic and vegan food certificates may be acquired.

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