Navigating Innovation Advancements in the F&B Industry

In an interview with Soler Sagué, Head of Transport, Noel, gave us insights into how their position as a prominent glaboal player allows them to adapt to diverse supply chain demands, explore emerging trends and implement cutting-edge technology to optimise manufacturing processes and supply chain operations.

How does your position as the Head of Transport and Depots at The NOEL Food Group, help you bring forward innovative ideas and advancements in the F&B industry? 

When you are in a leading company in the sector, you are selling products to the main retailers, not only at Spanish level, but also at European and Worldwide level. This means that from a supply chain point of view, you have to adapt to different ways of working, from delivering by FTL (full truck load), full pallets and few optimized items to a few delivery points to delivering 7 days a week by LTL, make a picking of 50 items with 1 box and 80 delivery points in a country receiving the order today to deliver tomorrow. The variability of each customer's supply chain means that you have to be constantly innovating and always ahead of the competitors to adapt to the constant changes of customers. Also, the difference in logistics in several countries will help to bring new ideas so every country is different and you can learn new ways to work.

What, according to you, are some of the emerging trends that will redefine the dynamics of F&B market in 2023 and beyond? Is there an emerging technology in the domain that you are optimistic about, or a technology that has the potential to disrupt the F&B industry? 

The appearance of e-commerce has been a complete disruption and will be even more so in the future. More and more consumers are digitising their purchases and have already started making their weekly purchase from home instead of the supermarkets. All of this is creating a change in logistics, as it causes the distributions within the city to increase significantly and this means that software at TMS (Transport Management Systems) are being faced with the objectives to look for the most efficient way to organise the routes of the delivery vehicles in order to be as optimal as possible with clear cost goals, but also very important sustainability goals, which will be one of the most important issues to consider in the next few years.

Regarding technology, I think the application of big data to the industry process in order to use the data to help making decisions will be the most important topic in the following years. It will make a huge impact in our day to day life.

As the F&B industry continues to face challenges like increased restrictions, demand shocks, and sourcing issues, what are some ways big data and analytics is revolutionizing the food industry?

In recent times, the use of big data and mathematics has been making great progress both for sales forecasting and for the optimization of raw material or material purchases. This is changing the ways to work; the companies no longer want to accumulate stock in their warehouses and want smaller and more constant services in order to avoid the generation of waste in their circuit. All this causes the development of new software in order to be able to have the maximum possible accuracy in data with the aim to achieve objectives of service levels close to 100% with the minimum possible stock. Achieving this goal also leads to a significant improvement in cash-flow by having a lower value of stock in the warehouse. This improvement helps the company to invest in other areas of the company.

Could you walk us through some of the innovative food technologies, products, and services that enable F&B companies to optimize manufacturing processes and supply chain operations?

I think automation and robotics is one key point for the industry. F&B companies are increasingly using automation and robotics to streamline the manufacturing processes. This includes automated systems for ingredient handling, sorting, packaging, and labelling. Robots can perform repetitive tasks with precision and efficiency, leading to improved production speed and reduced labour costs.

“F&B companies are increasingly using automation and robotics to streamline the manufacturing processes.”

Another important innovative technology is IoT (Internet of Things). IoT devices and sensors are being deployed throughout the supply chain to gather real-time data on various parameters such as temperature, humidity, and product movement. This enables companies to monitor and control conditions during transportation and storage, reducing food waste and ensuring quality and safety.

Also, new advanced software solutions are available to optimize supply chain operations. These tools provide end-to-end visibility, demand forecasting, inventory optimization, route optimization, and collaborative planning capabilities. By streamlining supply chain processes, F&B companies can reduce costs, improve efficiency, and respond quickly to changing market dynamics.

What are some of the innovative projects or programs you have spearheaded at The NOEL Food Group, and how are they making a difference in the domain?

In my experience, there are different types of projects that I’ve been involved in. For example, due to the short shelf life of some products, you can’t sell in chilled worldwide so we are sending stock in frozen to the country of destiny, looking for a 3PL/4PL partner to keep that stock in frozen and when the customer orders the purchase order, defrost, labelling and date code with the objective to deliver the freshest product possible.

Another project that it’s been involved in, is regarding IT, with the implementation and connection in the cloud in order to have the 3PL partners information in streaming. This is one of the key points in order to take next steps in our supply chain. Having the stock in streaming is important to be flexible and be alert on the demand/forecast changes.

 As an ending note, what is your advice for other senior leaders and CXOs working in the F&B industry? 

In my opinion, the first advice is to invest in talent and skills. Invest in training and development programs for your workforce to enhance their knowledge and skills. Encourage a culture of continuous learning, innovation, and adaptability to stay ahead of the curve. Encourage a culture of innovation and entrepreneurship within your organization. Provide platforms for employees to share ideas, experiment with new concepts, and contribute to continuous improvement.

The other advice that I’ll give to them is to foster collaboration and embrace sustainability. Collaboration is essential in the F&B industry, whether it's with suppliers, partners, or even competitors. Seek out strategic partnerships and alliances that can drive mutual benefits, such as joint product development, shared distribution networks, or collaborative marketing initiatives. Sustainability is a growing concern for consumers and stakeholders alike. Incorporate sustainable practices throughout your value chain, from sourcing ingredients responsibly to optimizing packaging and reducing waste.