ALPHARETTA, Ga. — New, independent research highlights positive increases in business results when food and beverage companies use cloud-based solutions designed especially for their industry.
The study, sponsored by Aptean, is summarized in the IDC White Paper: Global Food and Beverage Industry Trends and Strategic Insights, 2022, which will be released Tuesday. The paper showcases increasing use of industry-specific software by food and beverage companies, with Enterprise Resource Planning and Supply Chain Management systems noted as the areas most likely to be supported with industry-specific solutions, at 26.9% and 25.3%, respectively. This is for good reason: companies using an industry-specific ERP reported greater increases in both revenue and profit (5.3% in revenue and 4.9% in profit) compared to industry peers using generic ERP solutions (2.9% in revenue and 3.7% in profit).
Data from the study also indicates that cloud-adoption is a key priority for food companies and a very significant driver of success. A quarter of respondents have moved or are in the process of moving to the cloud and another 25% are currently investigating a move to the cloud. Notably, companies on cloud ERP solutions reported dramatic correlation with better financial results, a 6.2% increase in revenue and a 6.3% increase in profit, more than twice the increases in revenue and profit over the past 12 months when compared with those with on-premise solutions (2.8% increase in revenue and 3.1% increase in profit).
The research included more than 650 respondents from North America and EMEA, with data collected during May and June of 2022. In the IDC White Paper, this year’s data is also benchmarked against findings from the 2021 IDC survey, highlighting changes in the industry over the past year.
The research further demonstrates the extensive benefits that digital transformation delivers to food and beverage organizations. Of the 98.7% who have undertaken digital transformation initiatives, nearly 75% of respondents report KPI improvements across all business areas measured (production, quality, supply chain, logistics, sales, e-commerce, etc.). Further, over 45% of respondents expect to see even greater improvements in the next 12 months. Companies at high levels of digital maturity reported the greatest levels of both experienced and expected improvements.
“With the unique challenges faced by food and beverage organizations, having functionality designed specifically for their requirements results in a more effective software system overall. This, combined with cloud deployment, accelerates the benefits of digital transformation,” said Simon Ellis, program vice president for IDC Manufacturing Insights. “As food organizations plan digital transformation and explore cloud-based systems, it’s essential that they look for technology partners that understand their needs.”
“Aptean’s mission is to provide unrivaled, purpose-built software and superior customer service. This new research confirms that an industry-specific approach drives better business results for food and beverage companies and that cloud-based solutions will ultimately provide the greatest value," said Aptean CEO TVN Reddy. "The food and beverage industry operates in a challenging and rapidly changing environment. Cloud-based, industry-specific solutions lead to increased revenue and profit, a competitive advantage that is critical to success.”
The IDC White Paper, Global Food and Industry Trends and Strategic Insights, 2022, identifies eight key findings for food and beverage companies. In addition to information on the financial benefit of cloud-based, industry-specific solutions and the overall improvements delivered through digital transformation, the new study shows how food companies are reacting to top industry trends by:
- Reshaping priorities in response to inflation and economic uncertainty
- Developing actions and initiatives to address sustainability
- Building supply chain resilience by implementing digital tools and improving flexibility
- Leveraging contract manufacturing to better navigate fluctuations in demand
- Overcoming the talent/skills gap to eliminate barriers to digital transformation
- Investing in cloud-based solutions and new technologies to deliver added business improvements
The research findings will be presented by Ellis at Aptean’s 2022 Food and Beverage Symposium. Copies of the IDC White Paper are available for download at https://lp.aptean.com/IDC-2022-Trends-Report-Download-Request.html.