Digital transformation offers food manufacturers a giant reset button
As the leading Italian producer of extra-virgin olive oil, Farchioni understands the importance of quality and consistency. Every one of the 32 million bottles it produces each year must deliver the same culinary sensation. Just a few drops of this ambrosial gold on a bit of bread, anywhere in the world, can instantly transport diners to the Mediterranean’s sunny climes, to ancient olive groves and abundant tables, surrounded by friends and flowing conversation. Lower-grade versions simply do not have the same effect, and that’s without going into provenance, terroir and the numerous other factors affecting product quality.
But millions of people around the world would not be able to enjoy this magical experience if an entire chain of manufacturing processes didn’t work together flawlessly and in seamless harmony. Once a small business owned by two farmers operating from a single mill in Umbria, Farchioni’s empire now extends to beer, wine and flour, of which 25% is exported around the world.
That level of scale would be impossible without automating traditional manufacturing processes through digital transformation, a development referred to as Industry 4.0. Food and beverage manufacturing increasingly relies on modern technology such as smart data capturing and analysis, inventory and operations management, value optimization, and personalized training. With manufacturing processes calibrated to optimum conditions, production can be maximized while quality remains consistent and wastage is reduced. Alongside, the process yields substantial environmental and sustainability benefits.
For Farchioni, embracing these technologies with AVEVA’s manufacturing execution systems (MESs) didn’t just help to improve yield and reduce manual labor. The solution offers the confidence that each individual bottle within a 3,000-quintal batch of olive oil looks, smells and tastes identical.
As Farchioni shows, implementing digital technology into a plant can bring benefits that improve efficiency and productivity, while raising the quality of finished goods—whether in food or other industries. But is that enough to assure success in the new-normal marketplace, where the impact of Covid-19 remains an ever-present reality?
Perhaps more important in today’s market, digital operations management technologies provide consumer packaged goods manufacturers the ability to calibrate their response to fluctuating market and supply conditions. The industry has complex supply chains that can span continents. The sensitivity of these chains to climate and other environmental issues can cause the cost and availability of ingredients to vary dramatically. These trends have been further amplified by coronavirus-linked work restrictions and altered market demand linked to changing consumer lifestyles, incomes and purchasing patterns.
For instance, in February 2020 for the first time since records were kept, consumers in the US spent more at food service establishments than at retail grocery stores. By the end of the year, spending worth $220 million had shifted from food services to retail sales channels, completely upending supply chains. The situation changed again this year.
