Data Science in Food Industry: Transforming the Business Operations

The food industry is a consumer-driven industry that is growing at a rapid pace. However, this industry is facing a series of challenges that can be attributed to the changing demands of consumers and a stringent regulatory landscape. Today there has been a paradigm shift in the perspective of consumers with respect to food habits. This is the reason behind the growing demand for healthy and fat-free food products. As a result, companies in the food industry are looking for solutions like data science to bring about significant changes in their manufacturing and distribution process.

Data science is fundamentally revolutionizing the way food is manufactured. Companies in the food industry are actively tapping into data science to bring about improvements in inventory management, enhance quality control methods and meet growing consumer demands. In this article, we have discussed a few benefits of data science in food industry that can help companies to improve business operations and meet customer satisfaction levels.

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Benefits of Data Science in Food Industry

Improves operational efficiency

Data science techniques can help food manufacturers to analyze the impact of market trends on stock consumption. Also, it can help in analyzing the effect of temperature on the quality of food in real-time. Furthermore, data science in food industry is helping companies to analyze customer behavior and buying habits using various algorithms. Data science techniques can also help food manufacturing companies to analyze customer shopping history data that can further help them in personalization.

Helps in customer sentiment analysis

Data science in food industry can help companies in monitoring customer sentiments over social media platforms. By leveraging the use of techniques such as natural language processing, companies in the food industry can categorize customer feedbacks into positive, negative and neutral. This can further help in analyzing customer sentiments on the scale. Additionally, by analyzing negative feedbacks, companies can take preventive measures to improve customer service and satisfaction.

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Aids in quality enhancement

For brands in the food industry, maintaining the same quality of packaging is quite a challenging task. Apart from the proper measurement of ingredients, it also depends on the quality and storage of the ingredients. Data science in food industry can help companies to analyze such factors and predict their impact on the quality of the food. Furthermore, data science tools and techniques can also help analyze factors that affect the quality of packaged food. By gaining insights from such analysis, companies can easily understand the pain points and work on the improvement of customer service.

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Enhances market basket analysis techniques

Data science in food industry can help companies in market basket analysis through which they can predict frequently purchased items. By gaining valuable insights from this analysis, food manufacturers and retailers can improve their marketing campaigns and strategies. Furthermore, data science in food industry can be leveraged to improve the cross-selling and up-selling strategies.

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How Can Food and Beverage Analytics Help Companies Improve Supply Chain Operations?

For companies in the food and beverage industry, it is challenging to reduce supply chain costs and deal with changing customer preferences and demand. Also, with the introduction of a new food products every other day in the food and beverage market, it is difficult to manage customer demands in real-time. This is where food and beverage analytics can help companies to step up their game and stay ahead of competitors. Food and beverage analytics can help companies to optimize their supply chain operations and take more control of their quality parameters.

Advanced data analytics in the food and beverage industry helps to analyze and understand key factors that impact the quality and taste of food products. By gaining this insight in real-time, companies can make adjustments in their manufacturing processes to maintain consistent quality output. Also, food and beverage analytics can be used to evaluate the impact of factors such as storage and transportation on the quality of packaged food and beverages. In this article, our analytics experts have highlighted a few significant benefits of food and beverage analytics that can help companies in the food and beverage industry to operate a demand-driven supply chain and improve supply chain operations.

Reducing inventory while fulfilling growing customer demand can be difficult for food and beverage companies. Our experts can help. Get in touch with them right away.

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Benefits of Food and Beverage Analytics

Benefit #1: Track assets at every stage of the supply chain

Advanced data analytics aggregates data to create a bulletproof distribution ledger. This helps businesses to track assets at every stage of the supply chain and increase transparency and cost savings in the food and beverage supply chain. Also, this can help in keeping valued consumers informed about precisely where their food and beverage comes from. Furthermore, this can help businesses to ensure a greater level of accountability from their suppliers.

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Benefit #2: Predict future demand accurately

Food and beverage industry is characterized by narrow margins caused by insufficient stocks or improper inventory management. Companies can leverage food and beverage analytics to predict future demand and manage stock accordingly. Advanced data analytics not only helps companies to avoid overstocking but also helps in minimizing the risk of understocking and not being able to meet consumer demands. Food and beverage analytics can guide businesses in understanding which products to keep in stock in real-time saving time and money.

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Benefit #3: Improve safety and quality across the food value chain

Food and beverage analytics can be leveraged by companies to improve safety and quality across the food value chain. Also, it can help companies to manage defective or expired products that can further make the supply chain more efficient. Additionally, by using analytics businesses can adopt a holistic approach to inventory optimization by considering all levels and locations of inventory in the end-to-end supply chain simultaneously.

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What are the major challenges that food and beverage industry players are poised to face in 2020? Read this article to know:

4 Major Challenges That Food and Beverage Industry Should be Prepared for in 2020

4 Major Challenges That Food and Beverage Industry Should be Prepared for in 2020

Food and beverage industry has undergone a series of changes in the last decade due to the rapidly changing behaviors of consumers, technological advancements and stringent regulations. Such factors have plagued the food and beverage industry with a series of obstacles. Being a consumer-driven industry, this industry is facing serious challenges with the change in the perspective of the consumers as they have become more focused on maintaining healthy lifestyles. Today food products are judged based on not only the quality but also the nutritional value. As a result, food and beverage manufacturers need to bring about significant changes in their existing manufacturing process. In this article, our food and beverage industry experts have highlighted some of the major challenges that companies in the food and beverage industry are going to face in 2020.

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FOOD INDUSTRY CHALLENGES

Challenges in Food and Beverage Industry

Enforcement of the plastic ban

Food and beverage companies and manufacturers are now striving toward making the food manufacturing process highly conducive to the environment by adopting numerous recycling practices. In 2020, the need for deploying green business practices right from the production to the packaging and supply chain management will become very important to tackle the current issues in the food and beverage industry.

Check out our latest success story to find out how our marketing mix modeling helped a food and beverage industry player in driving profitable growth

Driving Profitable Growth in the Food and Beverage Sector with Marketing Mix Modeling – A Case Study by Quantzig

Stringency in the regulatory landscape

Most of the food and beverage companies adhere to the regulatory norms perfunctorily. But the consistent changes with respect to surplus production, waste disposal, quality of food, raw material, and documentation are emerging out to be major hurdles for food and beverage manufacturers. To deal with such challenges, companies in the food and beverage industry need to improve their business operations right from the manufacturing to the distribution processes.

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The pervasive presence of ecommerce

Another major challenge that the food and beverage industry is going to face in 2020 is the challenge of improving online visibility. Today consumers have become more tech-savvy and digitally informed and this has raised their expectations. Unlike ecommerce companies, food and beverage companies are still lagging when it comes to analyzing their online presence. With the emergence of the newer market, changing nature of consumer spending, and advancing technology, it is high time for companies in the food and beverage industry to focus on marketing products online. This can also help them serve their customers better and stay ahead in the competition.

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Rise of veganism

With the increasing number of consumers turning vegan, the demand for meat and other products has witnessed a significant decline. This has posed a serious challenge on the food and beverage industry. Food and beverage manufacturers today need to maintain their reputation with regards to ethical treatment of animal concern. As a result, companies have come up with meat-free alternatives to keep the retail and supply chains running.

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3 Different Ways Artificial Intelligence and Machine Learning is Transforming the Food and Beverage Industry

With massive transformations in global markets, AI and machine learning have become important assets for companies since they have the power to transform the way companies in the food and beverage industry deliver customer experiences. These technologies offer huge opportunities to companies to revolutionize critical aspects of their business processes. In the food and beverage industry, producers, retailers, and restaurants are rapidly changing their business strategies to incorporate innovative technologies to meet consumer demands, stay ahead of the competition, and provide an enhanced experience. Through the implementation of AI and machine learning technologies, retailers in the food and beverage industry can transform business processes and directly enhance the customer journey. In this article, we have summed up some of the interesting benefits of AI and machine learning that retailers in the food and beverage industry can leverage to improve customer engagement as well as ROI.

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CPG Sector market analysis – How supply planning solutions helped a CPG firm to reduce stockouts

LONDON: Quantzig, a global analytics services provider, has recently completed their latest supply planning solution for a CPG client. The global CPG industry is the foundation for the contemporary consumer economy as it drives enormous amounts of money into businesses like advertising and retail. It is also a means for the national economy to increase the gross domestic profits (GDP). Players in the CPG industry are looking to create and enhance shopping customer experience owing to the recent digital advances.

“The supply planning solution helped the CPG client to take into consideration the seasonality, tendencies, and the cost of production to decrease stock-outs. Additionally, the engagement helped the CPG client to predict customer demand patterns and meet production requirements.” says an industry expert from Quantzig.

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The supply planning solutions helped companies to increase forecast accuracies and enhance version management capabilities. Additionally, firms were also able to develop a robust inventory replenishment plan to offer consistent and reliable customer service to drive improvements in the supply chain performance.

Additional Benefits of the Supply Planning Solution

Increase forecast accuracy and management capabilities
Offer consistent and reliable customer service
Help predict demand to decrease the cost of production and stockouts
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Category Planning: How Quantzig Helped A Renowned Dairy Products Manufacturer Devise A Strategic Approach to Effectively Manage the Supply Chain

Client: A renowned dairy products manufacturer
Area of engagement: Category planning

The global market for dairy products is typically segmented into cheese, butter, milk, cream, yogurt, ice cream, buttermilk, and lactose-free products.

Today, the global dairy products industry is witnessing promising growth due to the rise in food consumption and the growth of online and mobile shopping platforms. Consumers are also shifting toward dairy products as it is a convenient and a relatively inexpensive source of protein. Moreover, the evolving consumer trends toward clean and healthy label products are compelling businesses to offer safe, nutritious, and affordable products to the customers. As a result, organizations should take advantage of their technical capabilities to develop innovative products and ensure better production efficiency while meeting the quality standards.

However, a few factors are expected to influence the growth of the dairy products industry in the coming years. These factors include:

Rising environment concerns: The rising interest in reducing greenhouse gas emissions across the globe is compelling establishments to shift toward more efficient ways to produce dairy products. Moreover, according to a recent research report, it is estimated that dairy products contribute to about 3% of the greenhouse gas emissions across global with cows producing approximately 200 liters of methane every day.
Welfare problems: The global dairy products industry is subjected to continuous welfare problems such as impregnation and induced calving and milking to meet the production demands. This has significantly reduced the average lifespan of a dairy cow from 20-25 years to six to seven years. To counter such apprehensions, it becomes essential for establishments in the dairy products space to shift toward a more organic method of producing products while retaining its quality.

Many such factors are compelling firms in the dairy products space to leverage the use of category planning solutions. Category planning solutions help companies effectively develop sourcing strategies and long terms plans to manage the supply chain. These solutions also help firms maximize cost-saving opportunities and effectively reduce additional spend.

The Business Challenge

The client, a leading dairy products manufacturer with manufacturing units spread across the globe, wanted to profile the target customers and differentiate their product offerings to provide superior value to the customers. Additionally, the client wanted to understand customer buying habits in terms of cultural, personal, and social factors and the decision-making process to position their products.

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The Solution and the Business Impact

The category planning solution helped the client gain real-time insights on the opportunity analysis to drive value and increase stakeholder engagement. Additionally, the client was able to address problems about additional spend and gained up-to-date market insights in terms of the nature of players and the cost drivers. This helped them effectively identify target commodities, opportunities and, effectively enhance their ROI.

Category Planning Solution Insights

With the help of Quantzig’s category planning solution, companies across the dairy products space can understand the customer buying preferences and accordingly position their products in the market. Companies can also identify the KPI’s and adequately allocate resources to meet the business requirements.

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Five Interesting Applications of AI in the Food Industry You May Not Have Known

AI and machine learning have been the buzzword for quite some time now. The use of such tools was previously limited to the digital world and computer science. However, recently it has made its way into multiple sectors including healthcare, education, finance, marketing, media, transportation, and gaming. Similarly, the food industry is also catching up to the developments in AI. From cooking to detecting food freshness, artificial intelligence has a lot of applications in the food industry. It can help the players in the F&B industry to improve offerings, deliver a better customer experience, and optimize operations. The growing use of AI in the food and beverage industry can be attributed to increasing customer expectations for foods that are healthy, unique, and handmade. Also, food manufacturers are constantly battling it out to find the perfect mix of taste, appearance, healthiness, and cost. That’s the exact reason why food companies are investing heavily in raw materials, safety and quality controls, and storage and distribution.

AI in the Food Industry

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Quantzig’s Price Point Optimization Assists a Food Retail Client in Increasing Profitability Levels

The client: A food retail company
Area of engagement: Price point optimization

The food retail sector is one of the largest industries in the US and the firms in this space are preparing to expand their consumer base and increase their foothold in the market. Typically, food retail establishments include outlets that serve food outside the home such as restaurants, cafes, takeaways, and catering and vending companies. Food retail companies across the globe are planning on devising practical measures to improve their offerings and meet consumer demands due to the rising consumer expectations. Additionally, the ever-evolving customer demands, favorable demographics, rapid urbanization, increase in disposable income, changing lifestyles, and food habits are driving the growth of this industry. However, the growth of the food retail industry is subjected to certain factors. These factors include:

Stringent government regulations: Today, government authorities are facing pressures to devise quality measures and provide safe and reliable food services to customers, as they have become conscious about their health outcomes. Additionally, government bodies across the globe have also made it a mandate to ensure safety in the food products offered due to the increasing instances of food allergies.
Impact of digitization: Firms within the food retail space are looking for promising ways to engage with customers and open new revenue streams due to the growth of numerous e-retail platforms. Additionally, the fluctuating preferences of customers are compelling food retail firms to offer ease and convenience in their offerings.

These factors are compelling firms operating in the food retail space to leverage the use of price optimization strategies. Price optimization solutions are used to combine data across different data sets with information and inventory levels to recommend robust pricing strategies to enhance the current profit margins. Price optimizing solutions also help firms calculate the demand for products at different intervals and scales.Furthermore, these solutions also assist firms in forecasting demand, developing robust pricing and promotion strategies, and subsequently, improve customer satisfaction levels.

The Business Challenge

Total food retail sales in the US amounted to about 5.32 trillion dollars in 2015.

The client, a leading food retail giant in the US with business operations spread across the wanted to collect historical data including the competitor’s prices, company’s pricing and promotions, and economic conditions. The client also wanted to understand the impact of price differentiation across customer segments and devise a robust pricing strategy to enhance customer satisfaction. Additionally, they wanted to formulate better initial pricing, discount pricing, and promotional pricing strategies.

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The Solution and the Business Impact

The food retail client was able to set temporary prices for companies to spur sales for items with longer life cycles with the help of Quantzig’s price optimization solution. The client also gained actionable insights into the customer buying patterns in real-time. This helped them devise strategic ways to retain their most profitable customers. Furthermore, the engagement also helped the client define profitability levels and understand the sensitivity of customers.

Price Optimization Solution Predictive Insights

With the help of Quantzig’s price optimization solution, the food retail client identified customer segments with a higher probability of cancellation. Additionally, the client gained a detailed analysis of the market in which the company operates by creating a competitive management analysis. This helped them forecast future renewal rates for their clients.

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Customer Analytics Helps a Non Alcoholic Beverage Manufacturer Analyze their Customer Behavior Patterns

The client: Non alcoholic beverages manufacturer
Area of engagement: Customer analytics

Over the years, the growing concern for a healthy lifestyle has motivated people to shift towards non alcoholic beverages such as fruit juices, soft drinks, and ready-to-drink products. The changing customer preferences are forcing manufacturers to concentrate on new product launches in terms of innovative beverages with zero artificial sweeteners. The increasing concern regarding obesity and rising health awareness coupled with factors such as rising disposable income, population growth, and changing lifestyles will trigger the growth of functional beverage and bottled water product segments. Although the non alcoholic beverages market is witnessing promising growth, owing to the entry of new players, several factors may influence the growth of the market:

Stringent government regulations: The rising government policies coupled with the increasing environmental concern have resulted in more stringent environmental protection policies. Since several non alcoholic beverages have a direct impact on the well-being of a person, regulatory bodies are taking effective measures to resort to the health-conscious consumers and their demands.

Rising government taxes: The recent years have witnessed fluctuations in the tax levels, with the sugar tax increasing at an exponential rate. Companies in the non alcoholic beverages space are finding possible ways to maintain consistency in their product offerings while maintaining the profitability levels.

High competition with alcoholic drinks: The beverage industry is facing a growing competition with more and more companies offering low-calorie products to replace alcoholic refreshments. With the growing threat in the number of new entrants, organizations are facing the need to improve their product efficiency while promising related health benefits.

To address these challenges and segment customers into the meaningful clusters, organizations are utilizing customer analytics solutions. Customer analytics solutions helps businesses identify the most profitable customer segments and tailor their marketing campaigns to meet the consumer demands.

The Business Challenge

The North American region is one of the largest markets for non alcoholic beverages, accounting for more than 20% of the market share globally.

The client, a renowned non alcoholic beverages manufacturer, wanted to analyze the customer preferences for specific products. The client wanted to understand the customers’ buying habits and preferences and gain more accurate predictions of the future buying behaviors. In the non alcoholic beverages space, the customers have become more informed, and their preferences are changing. With the help of a customer analytics solution, the client wanted to target customers with highly relevant offers and improve their brand affinity. Moreover, the client also wanted to focus on predicting the customers that are at risk and reduce the attrition levels with the help of the right distribution channel, right messages, and at the right time.

non alcoholic beverages

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Solution Benefits and the Business Impact

Strategies we recommended based on our analysis to anticipate customer demands and improve loyalty

The customer analytics solution offered by Quantzig helped the non alcoholic beverages effectively anticipate the customers’ demand and offer a differentiated set of products through the appropriate distribution channel. The solution also focused on finding the target prospects with similar attributes, so that the client can tailor their marketing campaigns to enhance the business performance. The customer analytics solution also aimed at identifying the at-risk customers and taking corrective actions to minimize customer attrition. Quantzig’s customer analytics solution also offered insights on the ways to build stronger customer relations to spur product sales.

Customer Analytics Solution Predictive Insights:

The customer analytics solution offered by Quantzig helped the client blend and analyze customer data across all social media channels. The solution also increased the customer lifetime value by delivering a positive customer experience. Quantzig’s customer analytics solution also helped the non alcoholic beverages client map their customer journey, efficiently engage customers, and enhance customer loyalty.

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Marketing Analytics Helps a Renowned Food Service Major Enhance Their Distribution Process Across the Globe

The client: Food service company
Area of engagement: Marketing analytics

Typically, the food service industry comprises of food chains and restaurants that aim at increasing their customer base by offering low-cost options. The food service sector is significantly affected by altering economic volatility, market dynamism, and consumer preferences. Therefore, leading companies within the industry space are exploring ways to meet the relentless demands of their customers and improve the expectations. However, several factors are influencing the growth of the food service industry. These factors include:

Supply chain management: The food services industry mainly relies on the supply chain to reach out to the markets and meet the relentless demands of the target customers. With the slow recovery of the economy, the supply of goods and commodities are likely to get affected, and consumers are expected to witness a decline in the supply of products across the food service
Inflation: Countries across the globe are witnessing fluctuations in product prices due to the recent economic instability. Additionally, shopping patterns of the customers have been disrupted owing to the recent collapse in the prices of the supplies due to Brexit issues.

As a result, leading food service firms are leveraging marketing analytics solutions to meet the growing demand for quality products and target niche market segments. Marketing analytics helps companies in the food service space improve their marketing initiatives, devise strategies, and boost profitability across business units. Such analytics solutions also help companies enhance ROI and marketing attribution rates.

The Business Challenge

According to a recent survey, it is estimated that less than 1% of the sales across the food service industry occur online.

The client, a leading food service firm, wanted to gain insights into the customer preferences and perception about new products. The client also wanted to measure, manage, and analyze the marketing performance to enhance market efficiency and ROI. To stay ahead of the competition, the client wanted to predict outcomes and allocate resources to meet the business requirements.

With the help of marketing analytics, the food service firm wanted to seek ways to monitor marketing campaigns, understand the overall sales performance, and monitor the impact of trends on the growth prospects of the industry.

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The Solution and the Business Impact

Strategies that we recommended based on our analysis to improve customer engagement and drive sales.

With the help of Quantzig’s marketing analytics solution, the food service client was able to determine the actual ROI of their activities in terms of social media and email marketing success. This helped them measure and optimize the marketing activities and streamline their efforts to improve sales performance. The client also wanted to re-prioritize their brand offerings and launch new products in niche market segments to reinforce their presence in the food service industry. Furthermore, they were able to diagnose deficits in their specific channels and accordingly adjust strategies to enhance their overall yield.

Marketing Analytics Predictive Insights

With the relentless growth of technology, food service establishments can make use of marketing analytics to enhance their business performance. Leading firms can leverage data to understand customer behavior across multiple locations better and make better use of their resources as the future of marketing analytics is shifting toward a more customer-driven outlook through technology-driven platforms.

Benefits of Data Science in Food Industry

Improves operational efficiency

Helps in customer sentiment analysis

Aids in quality enhancement

Enhances market basket analysis techniques

Benefit #1: Track assets at every stage of the supply chain

Benefit #2: Predict future demand accurately

Benefit #3: Improve safety and quality across the food value chain

Challenges in Food and Beverage Industry

Enforcement of the plastic ban

Stringency in the regulatory landscape

The pervasive presence of ecommerce

Rise of veganism

The Business Challenge

Want to learn more about our analytical solutions?

The Solution and the Business Impact

Category Planning Solution Insights

To know more about how our category planning solution helped the dairy products manufacturer

Related reports:

AI in the Food Industry

The Business Challenge

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The Solution and the Business Impact

Price Optimization Solution Predictive Insights

To know more about how our price optimization helped the client in the food retail space?

The Business Challenge

Solution Benefits and the Business Impact

Customer Analytics Solution Predictive Insights:

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The Business Challenge

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The Solution and the Business Impact

Marketing Analytics Predictive Insights

To know more about how our marketing analytics helped the food service client

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