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Software solutions enable F&B manufacturers to benefit from sustainable options
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Tuesday, 16 November, 2021, 14 : 00 PM [IST]
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Bino George
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Plastic has been around for ages offering comfort and convenience to consumers. Recently, the large-scale consumption and pollution of single-use plastic has led to an increased awareness on environmental sustainability. From the 25,000 tons of plastic waste generated every day, only 60% is recycled and the 40% remains uncollected, as per the Indian Union Environment Ministry. This data puts the spotlight on manufacturing more sustainable and environmentally friendly products and solutions.
With the Swachh Bharat Mission, modern food and beverage manufacturers are forced to rethink their dependency on single-use plastic in packaging. Hence businesses are actively pursuing sustainable alternatives and go-to-market strategies to combat the plastic usage in the food and beverage packaging industry. Fortunately, modern software solutions can help manage these multiple factors, starting with research and development and ending with consumer feedback.
A widespread transformation
The shift away from plastic packaging will impact a wide variety of factors, from package sizes to labeling and shipping, as manufacturers begin to migrate to containers made of more environment-friendly materials. Old standbys such as glass, tin/aluminum, and paper, will see a resurgence. Costs and margins will also be influenced. Manufacturers must determine what premium consumers are willing to pay for alternative forms of packaging—and what conveniences they are willing to forego to help reduce the environmental footprint of their favorite foods and drinks.
This will not be an overnight process as some questions will be difficult to answer, needing to be examined through the lens of science, logistics, profitability, and public opinion. For example, scientists seem to agree that glass is easier to recycle than plastic. But it is also known that the recycling process consumes large amounts of energy. Will the energy consumption be worse for the environment than reusing plastic or reducing single-use packaging altogether?
These topics are likely to be dissected and debated for some time, continuing to fuel consumer reaction and keeping food and beverage manufacturers in the hot seat.
Driving forces calling for change
The environmental and economic impact of plastic is now certainly in the spotlight. Consumers do not reuse or recycle as many plastics as they could, causing the waste to go into landfills. Plastics in landfills start to break down to microplastics, which enter the water table and food chain. Microplastics are harmful to humans, animals, and plants. Single-use plastic containers and packaging often find their way to the oceans Plastic packaging is the biggest source of plastic pollution in the oceans.
Some estimate that plastic packaging now accounts for about half of the plastic waste in the world. It is estimated that the ocean is filled with about 165 million tons of plastic, as per the Plastic in the Ocean Statistics 2020-2021 report by Condor Ferries. It also helps readers visualise just how much plastic this is by saying, “It’s equivalent to dumping the contents of one garbage truck into the ocean every minute."
Should manufacturers rethink packaging?
Food and beverage manufacturers have a massive job ahead of them. Evolving consumers expect change and are increasingly making buying decisions based on the social responsibility of the brand. Unilever recently conducted a study that reveals 88% of people surveyed in India would actively choose brands whose products are sustainably produced.
How software technology can help
Market-savvy manufacturers will begin transforming their packaging strategies to better align with consumer expectations. But rethinking packaging is no simple project. If changes in packaging potentially impact both product and profitability, the questions that companies need to answer are whether they can produce the same quality product that consumers expect and the likely financial impact of that change.
Product lifecycle management (PLM) solutions help manufacturers track and monitor the entire lifecycle of a product, beginning with research and development, and carrying through to product testing and pricing strategies. A modern PLM solution will help the organisation simplify the complexity of revamping packaging. The new package designs can be managed as a product launch with tasks broken down into steps for easy project management.
Recipe and batch specifications may need to be adjusted to accommodate changes in packaging and serving sizes, as well as how the product will be prepared. Eliminating protective plastic layers may change the shelf life, the freshness, or appearance of the food, calling for refinements in the recipes. Enterprise resource planning (ERP) solutions purpose-built for the food and beverage industry contain the functionality needed to refine such adjustments.
End-to-end visibility made possible by ERP solutions will be essential for tracking and quantifying the holistic impact of major packaging changes. One highly reliable version of the truth will help top stakeholders monitor progress and drive further decisions concerning packaging.
A connected supply chain network will be more important than ever, as the manufacturer will likely need to source new packaging resources, from product containers and lids to new types of material handling equipment and new shipping containers that can protect breakables or control temperatures. A modern supply chain management solution will be valuable in forging new relationships with reliable vendors and deciding new shipping routes.
Predictive analytics will be extremely helpful as manufacturers consider the financial impacts of alternative packaging options and understand the bottom-line impact. Managers will want to compare ‘what if' scenarios as they think through choices. Modern analytics, driven by artificial intelligence and machine learning, will be critical to devising new strategies to align with the price points consumers are willing to pay.
Customer relationship management solutions can help track communications with customers and support customer engagement, from marketing campaigns to focus groups and websites, which explain the company’s sustainability story. Traceability and the farm-to-fork journey is also closely tied to sustainability and can be highlighted on the company website. The entire customer experience can be enriched by using online customer portals and e-commerce tools, as well.
The massive amount of unrecycled plastics is becoming detrimental. Consumers are demanding action. As they become more vocal about their expectations for sustainable packaging, manufacturers must rethink their product lines and consider new packaging resources.
This is an opportunity to take a holistic view of the environmental impact of the brand, plus align with customers and build loyalty. Although the issues are complex, often affecting profitability, modern software technology will help simplify decision-making, collaboration, and network-building among potential vendors.
(The author is head of business consulting at Infor India)
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