Optimize the Food & Agro Supply Chain From Crop to Plate

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.

• Manage inventory in multiple, concurrent units of measure where needed, and allow seamless processing in all units (e.g. pricing at the in-process scale)
• Manage all inventory formats, including customer-owned, customer-pegged (promised), made-to-order (private label), quarantined, pre-approved by quality, etc.
• Manage all traceability issues, lot track & trace, quality recall management, etc.

• Evaluate all options for improving the business
• Explore product mix, customer mix, supply planning with ingredients and dry goods sourcing, supply chain costs, and optimization of cost options to maximize margins
• Collaborate across all roles and functions to build the best plan

• Manage complex customer pricing including deep top-to-bottom logic to accommodate complex contractual pricing component details
• Assign prices based on individual product characteristics
• Handle promotional pricing issues connected to the physical logistics planning cycles (inventory, transportation, etc.)
• Implement automated price optimization based on demand
• Compensate broker/distributor channels accurately, with links to the end customer where needed

• Compensate broker/distributor channels accurately, with links to the end customer where needed
• Transition from R&D to production in a well-planned, thoroughly coordinated manner

One system to handle:

• direct
• indirect via brokers/distributors
• B2B and B2C e-commerce and online stores

• Align analytics with strategic needs throughout your business process
• Manage yield throughout the buying, production, storage, and logistics execution processes – focus this effort on critical control points rather than inefficient all-encompassing scope
• Increase visibility to key performance areas for business leadership, real-time, in-process (no closes needed)
• Streamline end-of-month and end-of-year processes for fast, accurate completion
• Leverage imbedded analytics for real-time feedback on critical issues, such as yield

• Start with the right level of granularity to allow management of margin at the right level of detail for your business – most consumer products businesses need visibility at the customer and product level of detail
• Slice and dice your profitability analysis to see the effects of customer/revenue and product/cost mix, logistics execution, and other factors influencing profitability – use this information to improve the sales and operations planning process