1、Sponsored by:Food&Beverage IndustrySoftware Trends 20233Table of ContentsPart 1:Who Took the Survey 03Part 2:Biggest Challenges 07Part 3:Attitudes Toward Digital Technologies09Part 4:Most Valuable Software 192023Food&Beverage Industry Software Survey ReportWelcome to the second edition of our Food&B

2、everage Industry Software Survey Report!In 2022,we saw an industry rapidly embracing new digital technologies to help manage the headwinds caused by the ongoing labor shortage and supply chain disruptions.This year,the labor shortage continues with no end in sight,and while supply chain problems hav

3、e abated,inflation and other financial challenges are top of mind.In response,processors and manufacturers are continuing to turn to technology.The proportion who said software has transformed their business stayed the same as last year,43%,but the proportion who said software provides a competitive

4、 advantage for their business shot up from 30%to 54%.Software priorities are also changing.Last year,cost was ranked as the most important attribute,while this year its functionality.These results suggest that industry leaders have seen the value that technology can bring and are willing to invest i

5、n tools that will transform their business.Theyre also prioritizing tools that provide comprehensive solutions.Enterprise resource planning(ERP)was rated as the most valuable software,up from sixth place last year.It was also identified as the top software priority for 2023.Read on for more insights

6、 into how software continues to transform the food and beverage industry.Introduction23Part 1:Who Took the Survey3Survey respondents represented the entire food and beverage industry.Processors and manufacturers comprised the largest segment.For the data analysis,we combined the“processor,manufactur

7、er”group with the“packer,co-packer,contract manufacturer”group.Company type3Respondents came from all verticals of the food and beverage industry.The top five verticals were:1.Beverages2.Bakery and snacks3.Prepared foods4.Plant-based foods5.Confectionery and sweets4Part 1:Who Took the SurveyIndustry

8、 verticalsWhat vertical(s)does your company serve?35Almost all(94%)respondents were manager-level or higher.Part 1:Who Took the SurveyJob seniorityWhat best describes your job seniority?36Most of the respondents represented locations with fewer than 500 employees.Part 1:Who Took the SurveyCompany si

9、zeHow many employees are at your location?3Part 2:Biggest ChallengesIn an open-ended question,we asked respondents the top challenge facing their company right now.Almost 1 in 3 identified workforce issues including hiring,retention,and the cost of labor.Costs in general,and inflation in particular,

10、made up the second largest category,followed by difficulty getting new clients and growing sales.In addition to these specific challenges,many respondents also cited general market uncertainty and volatility as negatively impacting their business.7What is the top challenge facing your company right

11、now?Like all of us,the top challenge has been a market that is unstable and changing quickly.To keep up with what the industry needs and be able to pivot and help most effectively is both challenging and rewarding.“”83Part 3:Attitudes Toward Digital TechnologiesThe ongoing labor shortage continues t

12、o spur food and beverage companies to adopt digital technologies of all types,from automated processing equipment to packaging robots and autonomous guided vehicles.For software in particular,tightening regulations around issues like traceability,coupled with a volatile market,are forcing processors

13、 and manufacturers to adopt tools that provide complete oversight into their operations and give them the information they need to adapt to ever-changing conditions.9More than four in 10(43%)processors and manufacturers said that software has transformed their operations,which is the same as last ye

14、ar.But the percentage who said that software provides a competitive advantage for their business jumped 80%,from 30%to 54%.10Meanwhile,the proportion who said their company is an early adopter and leading the digital transformation dropped compared to 2022.These results suggest that while processors

15、 and manufacturers are seeing the benefits of adopting technologies,most are still unwilling to be the first to try out new tools.Part 3:Attitudes Toward Digital TechnologiesWith regard to new software for your company,how much do you agree or disagree with the following statements?Processors and ma

16、nufacturersThe other respondents(suppliers,retail and foodservice,etc.)agreed more strongly with all of the technology statements than the processors and manufacturers.They also agreed more strongly with all statements compared to last year.11Part 3:Attitudes Toward Digital TechnologiesWith regard t

17、o new software for your company,how much do you agree or disagree with the following statements?All other respondentsEarly tech adopters(by vertical)Perhaps not surprisingly,some of the newest industry verticals are most likely to adopt new technologies.More than half of respondents in the plant-bas

18、ed foods(55%)and cannabis products(52%)verticals said that their company was an early adopter.At the other end of the spectrum,just 37%of respondents in bakery and snacks and 38%in dairy said the same.However,all of these numbers are higher than last year,when the top industry was meat,poultry,and s

19、eafood at 35%.12Part 3:Attitudes Toward Digital TechnologiesMy company is an early adopter.60%of respondents in the cannabis products industry said their company is leading the digital transformation,compared to 32%in bakery and snacks.In 2022,the top industry was dairy at 29%.1376%of respondents in

20、 the grains,nuts,and seeds industry said software has transformed their operations,compared to 61%in plant-based foods.In 2022,the top industry was meat,poultry,and seafood at 55%.Part 3:Attitudes Toward Digital TechnologiesThe digital transformation(by vertical)My company is leading the digital tra

21、nsformation.Software has transformed how we operate.A large majority of companies in all verticals(from 68%in bakery and snacks to 79%in beverages)said that software provides a competitive advantage for their business.In 2022,the top industry was bakery and snacks at 55%.14Part 3:Attitudes Toward Di

22、gital TechnologiesCompetitive advantage(by vertical)Software provides a competitive advantage for our business.Digital maturity15Overall,respondents rated their companys digital maturity as medium or higher across all functional domains except R&D/new product development.The top three most mature fu

23、nctions are marketing and sales,supply chain,and logistics/transportation.Part 3:Attitudes Toward Digital TechnologiesHow would you rate your companys digital maturity across the following functional domains?Opportunities for digital transformationThe top two areas where respondents see the biggest

24、opportunity for digital transformation to drive results are production and supply chain.More than one in five(21%)respondents rated each of these as the top area of opportunity.16Part 3:Attitudes Toward Digital TechnologiesWhere do you see the biggest opportunity for digital transformation to drive

25、results for your company?Technology changes the nature of work that needs to be performed.In the food and beverage industry,technology can help mitigate labor issues,but successful implementations require digital skills.Only 58%of respondents said that their company currently has the skills needed t

26、o use new software effectively.This suggests that software thats easy to use from vendors that provide a high level of support will be in demand.17Part 3:Attitudes Toward Digital TechnologiesDo you believe your company has the digital skills required to use new software effectively?Successful softwa

27、re implementationMany processors and manufacturers have taken at least one step toward cloud computing,whether thats actively using it or just considering making the move.At the same time,45%said they dont use the cloud at all,and only 10%said they are“going all in”on the cloud.18The other responden

28、ts were much more likely to have already adopted the cloud.Two-thirds(66%)said they use it for some operations,while 26%said theyre“going all in.”Only 15%said they dont use the cloud at all.Part 3:Attitudes Toward Digital TechnologiesCloud computingProcessors and manufacturersAll other respondents3P

29、art 4:Most Valuable SoftwareWe asked respondents to rate various software solutions on a scale of 1 to 10,where 1=not at all valuable and 10=extremely valuable.These results are from processors,manufacturers,co-packers,and contract manufacturers only.Enterprise resource planning(ERP),inventory manag

30、ement,and food safety tools were rated as the most valuable solutions.Traceability,which was last years top software,fell to#4.On the other end,design and engineering,statistical process control(SPC),and enterprise asset management(EAM)were rated as least valuable.19How valuable are the following so

31、ftware solutions for the success of your business?20In addition to the ratings,we also asked respondents three related open-ended questions:What is the most valuable software you use on a regular basis?What is your companys top software priority for 2023?What software do you wish your company would

32、purchase to improve your day-to-day work?For the first two questions,the most common answer was enterprise resource planning(ERP)software.This is the same as last year,and suggests that processors and manufacturers are looking to move away from multiple disparate software systems and instead consoli

33、date their critical data and information into a platform that provides a single source of truth.The third question generated a wide range of answers,with many respondents indicating that theyd like a“better”solution than the one they currently have.Part 4:Most Valuable SoftwareWe asked respondents t

34、o think about the future of their business and what areas that are already challenging might get worse if technology solutions arent implemented.The top three answers were:Lack of skills/labor shortageTraceability/ability to comply with regulatory requirementsLack of supply chain visibility and flex

35、ibility/adaptability to see necessary changes in time to react to them effectively21Part 4:Most Valuable SoftwareWhat current gaps are likely to be the most problematic in the future if not addressed through technology?Looking ahead22Most important software attributesPart 4:Most Valuable SoftwareWe

36、asked respondents to rank 11 software attributes in order of importance.These results are from processors,manufacturers,co-packers,and contract manufacturers only.1Functionality2Return on investment(ROI)3Cost4Ease of use5Integration with existing systems6Flexibility/customizability7User training and

37、 support8Industry-specific features and capabilities9Time to implement10Scalability11Industry expertise of the software vendorFunctionality replaced cost as the top-ranked factor overall.The only other major change from last year is that industry-specific features and capabilities fell below flexibi

38、lity/customizability and user training and support.How important are the following attributes when evaluating software?(Rank in order of importance.)We also asked what challenges respondents face when implementing new software.On a scale of 1-10,all challenges were rated above a 6.The top three chal

39、lenges identified were:User adoption/resistance to changeEmployee trainingIntegration with existing systems/compatibility issues23Part 4:Most Valuable SoftwareWhen integrating new software into your operations,how challenging do you find the following?Software implementation challenges24Software imp

40、lementation processPart 4:Most Valuable SoftwareDespite the many challenges,only 34%said their company has a formal implementation process for new software.While this is up from 28%last year,it indicates additional room for improvement.Does your company have a formal implementation process for new s

41、oftware?3When your business is preparing for or engaging in digital transformation,its critical that everyone involved understands that it is a journey,not a destination.The food and beverage industryas well as the technology that supports itis constantly evolving,and that means digital transformati

42、on initiatives should in large part focus on continuous improvement and effective change management.Generally,you should begin by establishing your foundation,typically an enterprise resource planning(ERP)solution.If your company doesnt have one in place,youll need to carefully evaluate your options

43、 and find the right industry-specific platform for your circumstances.If you do already have an ERP,you might consider upgrading it,migrating it to the cloud or potentially replacing it if it lacks key functionalities or isnt user-friendly.You should also create a roadmap for your journey before you

44、 begin.That should include a realistic timeline and observable milestones,and it should be shared with everyone in the organization to set expectations and help them understand the different phases of the transition.Digital transformations result not in just a change of technology,but also typically

45、 a change in your processes and your employees mindsets.And speaking of change,we must recognize that it can be scary,especially for factory floor workers,as their jobs and daily tasks Starting the Digital Transformation Journeymay change substantially as a result of new software being implemented a

46、nd processes being adjusted.Proper support from executive leadership,with clear communication every step of the way,is the best way to overcome that challenge and get buy-in at all levels of the business.As you progress through your digital transformation,you should begin to see positive effects on

47、your metrics and key performance indicators(KPIs).In the case of a food and beverage company implementing its first ERP,this might be the first time that metrics and KPIs are readily accessiblethats one of the biggest advantages of a purpose-built,fully digital system.With time,your journey may reve

48、al new opportunities to unlock additional functionality and benefits through the addition of complementary solutions like product lifecycle management(PLM),overall equipment effectiveness(OEE)and enterprise asset management(EAM)software.Through integration with your ERP,each of these can help round

49、out your tech stack and propel your digital transformation forward.If youre ready to learn more about our portfolio of food and beverage solutions and how they can help modernize your business and drive continuous improvement,reach out to us today at .From Jack Payne,VP of Solution Consulting,Food and BeverageSponsored by:Thank You!For the latest news in the food industry,visit FoodIndustryE.Advertise on the fastest growing publication for food industry buyers and suppliers download the Food Industry Executive media kit.