MARKET TRENDS
DIGITALISATION
Digitalisation for Sustainability As the concept of Industry 4.0 gains momentum, adapting to the digital revolution has become near-tantamount in the F&B manufacturing scene. Raimund Klein tells us why.
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he global manufacturing landscape has evolved rapidly over the past few years and the sector is experiencing a paradigm shift in both mindsets and processes, particularly with the advent of and push towards ‘Industry 4.0’. Manufacturers now are faced with the prospect of being left behind or worse, going bust, if they fail to adapt to the digital revolution. Needless to say, priorities have changed and an increasing number of enterprises are beginning to realise the importance of embracing digitalization to remain competitive in the global marketplace. Raimund Klein The impact of the evolving manufacturing landscape cannot be understated, as shown by the results of the 2016 Global Manufacturing Competitiveness Index (GMCI); a multi-year study prepared by Deloitte Touche Tohmatsu Limited, Global Consumer & Industrial Products Industry Group and the Council on Competitiveness. The study revealed that manufacturing is still very much a key driver of global economies, heavily influencing infrastructure development, job creation and contribution towards gross domestic product (GDP), paving the way towards economic prosperity. Key markets in Southeast Asia such as Malaysia, Thailand, Indonesia and Vietnam were
Manufacturers today are faced with the prospect of being left behind or worse, going bust, if they fail to adapt to the digital revolution.
20 Asia Food Journal November-December 2017
highlighted for projected growth, and are expected to break into the top 15 nations on manufacturing competitiveness over the next five years. Singapore, currently ranked 10th on the index, attributes 20 per cent of its GDP to the manufacturing sector. The food and beverage (F&B) industry in particular has been a significant contributor to the growth in manufacturing in Southeast Asia. Global management consulting firm L.E.K Consulting reported that the combination of a wealth of new products and the increasing penetration of modern retailing have led to double-digit growth rates for numerous F&B categories across the region. It is plain to see that consumer demand is ripe, and the industry in general is experiencing positive expansion. A large part of the accelerated growth in recent years has been due to technological advancements in the industry. The question then really is, how well are businesses reacting to this growth and what measures are being implemented to ensure that they remain competitive? Firstly, it is imperative that F&B manufacturers recognise the challenges they face. With increased production requirements, it is crucial that they maintain a consistently high level of product quality, maximum plant availability, optimum resource efficiency, and, increasingly, the greatest possible flexibility in order to meet growing individual customer requirements. F&B manufacturing plants are as complex and complicated as any other plants. There is constant pressure to meet the high requirements of hygiene, quality, HSE, efficiency and costs. Due to lower margins when compared to other industries, coupled with demand for high quality, each and every tool capable of optimising performance and output must be utilised. Operational excellence is certainly not a new or novel concept in the industry; it has been in play for decades, considering the various technological developments the industry has already deployed – such as automation. Digitalisation is the next logical step in the industry’s evolution as players seek to gain an upper hand amongst competitors. Unfortunately, due to the various pressure points faced, the F&B manufacturing industry lags behind other industries, such as pharmaceuticals and electronics, when it comes to the implementation of new technologies. Thankfully, that is slowly changing as adoption rates are rising and are expected to catch up
