THOUGHT LEADERSHIP
Preparing for the future: sustainability, digitisation, and an aging workforce Pollen Consulting Group held a discussion panel that covered supply chain, factories of the future and the aging manufacturing population. Food & Beverage Industry News was there.
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upply chain, factories of the future, Industry 4.0, and an aging manufacturing workforce – all subjects that recently have started to have an impact on the food and beverage industry. It’s no longer enough to go after market share; processors and manufacturers in this space have to play the long game and ask themselves some questions about where they are heading, such as: What does the future hold in the supply chain space? Do we need to adopt an Industry 4.0/Internet of Things (IoT) strategy? Does it even affect my business? What is a factory of the future? Pollen Consulting Group is a company that specialises in value chain transformations in the fast moving consumer goods (FMCG) sector. It recently hosted a networking event where a panel consisting of some of the brightest minds in the
digitisation area came together to discuss some the issues that both multinationals and SMEs are facing within the sector. Facilitated by Pollen’s managing director, Paul Eastwood, the event showcased insights into the aforementioned issues. Linda Crowe, head of supply chain at wines and spirits producer Diageo, knows that the company has to get onboard with sustainability initiatives –but at what cost? “We had our global supply and procurement director out recently and we talked about sustainability,” she said. “And the biggest message he landed was that we don’t have a choice anymore, but we need to find a way to be sustainable without impacting costs. Or, if it’s going to be more costly, then we have to pull it out of the profit and loss (P&L) somewhere else. We definitely
"We don’t have a choice anymore, but we need to find a way to be sustainable without impacting costs. Or, if it’s going to be more costly, then we have to pull it out of the profit and loss (P&L) somewhere else. We definitely need to start looking within to get ahead of the trends and do it in an intelligent way.” need to start looking within to get ahead of the trends and do it in an intelligent way.” And while some talk the talk, as James Magee, CEO of Operations Feedback Systems (OFS), explained, when it comes to walking the walk, some baulk. “From my time working in Visy’s recycling department, there were many brand owners and organisations that came in and said they wanted to go down the path of sustainability,”
he said. “They wanted to promote it, but of course it came at a higher cost. When that resolve was tested, in many cases, neither the brand or consumers, despite outwardly promoting it and testing at shelf, decided they would go for the cheaper option. It’s interesting to hear Diageo’s approach. That is a breath of fresh air because a lot of companies will chase profits over sustainability.” And while it is easy to be cynical about costs over profit, at least
Food supply chains need to become more sustainable and transparent as consumers become more opinionated about where their food comes from. www.foodmag.com.au | October 2019 | Food&Beverage Industry News 21
