Increasingly demanding customers and suppliers, stronger traceability focus and new technologies are altering the way food & agro companies do business. We can help you lead the transformation.
Today’s Food & Agro businesses face a host of new challenges. Customers want to know exactly what they consume: where does it come from and who grows it? Is it grown, harvested and processed in a safe and environmental-friendly way? In a way that optimises the nutritional value? Suppliers want a flexible business partner, who can commit to a long term volume contract combined with short-term process cycles and who can help them leverage new technologies on smart farming and the Internet of Things. More stringent food safety regulations and fierce competition force Food & Agro companies to optimise their traceability and recipe management.
To overcome these challenges, Food & Agro companies need to bring all of their processes together in one platform – with tailored ERP solutions providing integrated planning and transparency across the supply chain.
Nortura is one of Norway’s largest food manufacturers, and the leading brand supplier of meat, processed products and eggs to the Norwegian market.
Nortura is organized as a cooperative owned by more than 18,000 Norwegian farmers and has more than 30 production facilities all over the country.
NTT DATA Business Solutions has for a number of years supported Nortura with their implementation of SAP throughout the organization. The project started in 2015, with the first go-live in 2017. The plan is for the project to roll out SAP to more than 30 product facilities.
The Internet of Things is transforming the way farmers, food manufacturers and distributors produce, process and sell food. It all starts at the field, where farmers optimize yield, reduce the usage of scarce natural resources and make the most efficient use of existing arable land by leveraging IoT technology. The use of GPS services, smart equipment, sensors, drones and satellites imagery collects and combines real-time data on crop growth, moisture level, soil characteristics, weather conditions and more.
Decision support systems translate these input data into agronomic advice. With this information the farmer can more precisely determine when to plant, when to irrigate and what crop protection to use. The “Food Supply Chain 4.0” continues with transportation companies, who have connected their cargo with sensors and apply predictive analytics: not only to track locations and provide their business partners with real-time delivery information, but also to monitor the freshness of the products by monitoring temperature and humidity level in their containers or trucks. Food & Agro manufacturing companies use the IoT not only to connect with their business partners achieving full supply chain transparency, improving food safety and reducing the probability and the impact of recalls. Manufacturers also streamline their own operations by connecting their machines and tools. Required maintenance can be signalled before a machine actually breaks down, which reduces downtime. Quality issues can be reduced by the use of sensors: eg. by signalling the door to a refrigerator room has been left open too long. Inventory and storage conditions can be optimized.
Last but not least, the consumer experience is transformed due to IoT. Fresh food boxes with recipes delivered at home; QR codes on a food product, allowing the consumer to get detailed product information; personalized coupons; personalized nutrition information; scan-and-go apps using smartphones. Also, grocers are experimenting with determination of food freshness by using video analytics and gas sensors; all in order to avoid spoilage and optimize consumer experience.
The Connected Food Supply Chain transforms the way of doing business for farmers, agro-food manufacturers, food transportation companies, CPG brands and consumers. NTT DATA Business Solutions solutions are designed to support you in this transformation. Our technology platform enables you to process data from any kind of machine, mobile device or sensor – merging it with transactional business data, geographical services or unstructured information from social media; then turning it into relevant business steering information.
Transparency across the Food supply chain is not only driven by regulation, but also by consumer demand. Consumers want to know exactly what they consume: who grows it, and from which country and region is the product? Is it grown, harvested and processed in a safe and environmental-friendly way? And in a way that optimises the nutritional value? Consumers also want clean labels: detailed specifications in comprehensive language, which indicate at a glance if the product is meeting their expectations (e.g. biological, gluten-free, halal or without preservatives). NTT DATA Business Solutions Food & Agro solutions are tailored to support all these demands. Our industry solutions are based upon the SAP S/4 HANA platform, enabling seamless integration with your business partners. Our Global Batch Traceability solution graphically displays all steps in the supply chain, from raw material to end product, on batch level. Source data is coming from our ERP solution but can also come from other sources like co-packers, suppliers or quality control agencies.
Food & Agro companies have specific planning challenges that stem from working with fresh raw materials / livestock. Being it seeds, flowers, vegetables, dairy or meat: supply of raw material is always fluctuating. This can be due to seasonal patterns, changing growing- or harvest conditions or volatile market prices. In any case, long-term supply can only be planned on high-level (e.g. estimated volumes, period, quality) whilst detailed material specifications are not known until short-term, often only upon material receipt. Demand in Food & Agro is, on the other hand, getting more and more specific: both private label and retail customers are improving their labelling and quality requirements. Balancing make-to-order and make-to-stock is therefore a key requirement for success.
Smart technological solutions such as traceability software create insight, efficiency and safety in the food chain. Every movement of a product can be followed at any desired level: per crate, pallet or batch – and across all locations and warehouses.
Nortura's digital core is shaped and enables an insight and transparency that with previous solutions was demanding, if not impossible. Large parts of Nortura are using the new technology, and the employees have adapted their routines and tasks in order to use the new system. Our employees’ and management’s ability and willingness to change in this demanding project is simply impressive, and probably one of the most important factors for Nortura being where we are today. We have a great cooperation with our partner NTT DATA Business Solutions. They understand our business, industry and needs, which is crucial to the success of our digital transformation.
Erik Høeg, CFO and Project Owner in Nortura
Potatoes
The potato chain will look completely different in 20 years. Innovation is a must to meet the rapidly changing demands of consumers and the increase of stricter laws and regulations. Not to forget the increasing focus on sustainability and the environment. Technological innovations speed up all changes. NTT DATA Business Solutions can help you make the next step.
Bakery & Confectionery
Over the past few years, sales figures in the bakery & confectionery industry have nearly stagnated due to customers’ changing nutrition habits. However, to stay competitive it is more crucial than ever. As a basic requirement, you have to ensure that all processes – such as recipe management and quality control – run smoothly. Our experts support you with industry-specific SAP solutions so that you can concentrate on your core business: the production of culinary delights.
Meat Industry
Increasingly demanding customers and suppliers, stronger traceability focus and new technologies are altering the way Food & Agro companies do business. We can help you lead the transformation.
Dairy Sector
The growth of the healthy snacking culture and of online and mobile shopping are changing the way dairy food is being bought and consumed. Adapt to these trends through better use of technology and data to target customers with tailored offers. At the same time, ensure that supply and demand are in line through better inventory management. With our extensive knowledge of dairy industry processes, we can help you overcome these new challenges.
Durables
Digital transformation and changing consumer buying habits mean that analytics and big data are now requirements in the consumer durables industry. Companies must tackle the topics of cloud adoption, data security, and SAP HANA to stay competitive in the growing global market. Profit from our technological thought leadership and industry-specific knowledge to overcome any challenge you may face.
If you are currently facing one or more of these challenges, we can help you rethink your processes
Contact us – we will be glad to help.
One system to handle:
As a trusted long-standing SAP partner, NTT DATA Business Solutions is part of the development process for industry-specific solutions from the outset. Combined with over 25 years’ experience in SAP implementations across multiple industry segments, this gives us unparalleled knowledge of the consumer products industry. It also puts us at the forefront of innovation in the sector, meaning that as we grow, you grow.
What’s more, thanks to our global presence, you can benefit from our best-in-class B2B and B2C solutions and round-the-clock consulting, wherever you are.
How will we feed nearly 10 billion people in 2050? How can we handle the growth of food demand short-term in the next years? How can we stop nature destruction and foster natural awareness for our future?
Imagination and new ways of thinking are needed to handle the global food challenges of the future. In this video you can watch a replay of the original pitch at the global NTT DATA Hackathon 2017 to showcase the potential of a farmbot network to establish a platform for future Smart City Farming.
Are you searching for answers or would like to receive more information on the Food & Agriculture consumer products industry? Do you want more detailed advice from our experts?
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