The key tools used in this process are digitalized automation and information systems. Not only do they help manufacturers increase throughput and revenue, but they also help businesses adapt to changing market forces, comply with updated regulations, and respond to evolving consumer trends.
As the industry is facing several challenges like volatility in the supply chain and rising costs, this can lead to shrinking margins. Companies are also dealing with a significant labor shortage, with an estimated 8 million workers expected to be missing globally by 2030. Moreover, the demand for product variants is increasing, with 67% of food manufacturers reporting a rise in stock-keeping units (SKUs).
In addition, consumer demand for quality and transparency has increased due to past scandals involving mislabeled meat. As a result, there is a need for comprehensive integration and transparency throughout the supply chain, from producer to consumer.
Sustainability is another crucial factor pushing manufacturers to demonstrate their commitment to sustainable practices. This involves implementing systems and energy-saving machines that monitor, measure, and report sustainability data continuously.
Food safety regulations also pose a challenge, with compliance leading to the development of multiple standards for hygienic design. Furthermore, advancements in digitalization technology have led to new business models such as x-as-a-service, where value is measured in produced units or processed kilograms. And due to the rise in digitalization, cyber threats are an increasing concern, necessitating robust cybersecurity measures.
Rockwell Automation offers various strategies and solutions to tackle these challenges. They include harnessing digital innovation and cloud-based platforms, integrating food safety into the development phase, designing flexible machines, ensuring secure data functions, promoting machine sustainability through energy efficiency and revenue, and enhancing employee productivity and safety.