The world has been witnessing continuous changes since ages and these changes signify that the humankind has developed and attained evolution at every stage of life. One such development is the industrial revolution that is one of the most significant societal upheavals in human history. In simple words, the industrial revolution is the process of change from an agrarian and handicraft economy to one dominated by industry and machine manufacturing. This process began in Britain in the 18th century and from there spread to other parts of the world. The first industrial revolution came with the advent of mechanization, steam power and water power. This was followed by the second industrial revolution, which revolved around mass production and assembly lines using electricity. The third industrial revolution came with electronics, I.T. systems and automation, which led to the fourth industrial revolution that is associated with manufacturing technologies, including cyber-physical systems, the Internet of things (IoT), cloud computing and cognitive computing and creating the smart factory.
Potential of the Fourth Industrial Revolution
Industry 4.0 allows businesses to optimize the four levels of their operations (things, equipment, manufacturing operations management, business systems) by giving greater oversight of the whole process. It allows a company to make decisions on the huge volume of data that is being produced at the four levels, to better find out how the whole operation is performing so that smarter solutions can be found to issues as they arise. One such industry that can actually leverage the potential of Industry 4.0 is the food and beverage (F&B) industry. In this article, we’ll focus on the impact of Industry 4.0 on the food and beverage industry of India, let’s have a look.
It’s imperative to understand that Industry 4.0 powers smart manufacturing, which means fully-integrated collaborative systems that respond in real-time to meet changing demands and conditions in the factory. In the same time, the changes are taking place rapidly, and F&B manufacturers are trying to keep up with the challenges driven by shifting consumer attitudes, retailers’ demanding more, tighter regulations and more pressure from business owners. Here is where Industry 4.0 for the F&B industry comes as a saviour that can sync with the requirement of the industry while improving competitiveness.
As per ReportLinker, the Internet of Things (IoT) and traceability for F&B manufacturing market was estimated at $4.08 billion in market revenue in 2017 and is assumed to reach $8.43 billion by 2025, expanding at a CAGR of 9.5 percent. Food manufacturing is still controlled in a centralized manner, in the near future, machines and raw materials will individually arrange the manufacturing process and interact with each other over corporate divisions. But, transforming consumer behaviour and legal regulations, as well as improving specialization means new challenges for the industry. Even though many manufacturing plants have already automated their processes, there is still often the requirement for a structural combination of a comprehensive data model. The integration of the processes offered by the technologies behind Industry 4.0 can help food manufacturers to meet many of the current demands being placed on them, be they about enhancing food safety or better managing their supply chains.
Real-time Advantages of Industry 4.0 in F&B Organizations
Many of the movements within Industry 4.0 empower a food manufacturer to better meet the requirements. Industry 4.0 allows them to gather more data, in real-time, to notify decision making and examine it more rapidly. It utilizes the data once it’s been examined in concurrence with their own industry expertise to evolve insights and conceptualize, processes about how to control their systems even better. It helps organizations to make better, more literate decisions depending on the insights about their business strategy. Let’s have a look at how the F&B sector can be benefitted from Industry 4.0.
Industry 4.0 can enhance food quality, operational productivity and compliance. Companies in the food and beverage industries face unique challenges as they frequently encounter hard production environments and precise regulatory requirements. The Internet of Things (IoT) assists food and beverage companies acquire substantial visibility over their manufacturing, transportation and production operations to give higher quality products for end consumers while preserving operational efficiency and remaining adaptable with governmental rules. Not just that, but Industry 4.0 can help in the expansion of food & beverage safety. Taking sufficient food safety measures is not only an essential part of giving quality food and beverage products to the end consumer but it also plays a crucial role in supporting compliance. Different food ordinance organizations and governmental agencies across the world are now started demanding more detailed tracking and record-keeping to assure compatible food safety.
Industry 4.0 can simplify operations and improve efficiency as the IoT-enabled solutions give a variety of logistical benefits for food and beverage companies. Connected devices can support industries in the food and beverage manufacturing industry increase efficiency and improve business processes while also working to prevent machine downtime and expensive issues. Inventory management can be easier to leverage the power of Industry 4.0. Smart, connected IoT products can also be a game-changer for IoT solutions in retail. IoT will allow simpler, smarter and more intelligent inventory management solutions that are cost-effective, well organized and wastage due to overstocking.
Industry 4.0 can simplify the supply chain management, traceability and product recall. This greater visibility and integration embedded in Industry 4.0 allows companies to keep better track of all their orders across the supply chain. It can tell companies instantly how much inventory they have and how they can be deployed. Logistics timeframes can be shortened and products can reach the market more swiftly. That can help ensure that products evolve ahead of the competition, producing both top and bottom-line growth. The information obtained through having complete sight from end-to-end of the production process can enable a business to have far greater control and provide quicker, actionable information into how a product is performing.
Conclusion
Although the notion of Industry 4.0 or ‘smart manufacturing’ may have previously had greater application to perceived high-tech industries such as aerospace and automotive, the opportunities for the F&B industry are significant. The industry is witnessing highly competitive environment in the current era. Hence, organizations that apply the right Industry 4.0 strategies, are likely to be the ones that not only survive in this environment, but also thrive with improved operating performance, growing market share, and higher shareholder value. Industry 4.0 enables a food manufacturer to assure its processes will better serve changing consumer trends. Not just that but it will allow their workforce to gain new skills and take greater responsibility and to manufacture products more systematically and beneficially. With a connected workforce, data analytics and connected manufacturing processes the food industry can look confidently ahead to the abilities of the world of Industry 4.0.