BULK HANDLING, STORAGE & LOGISTICS
Optimising food manufacturing through artificial intelligence Jarrod Kinchington, Infor ANZ Vice-President and Managing Director
The value of the market for artificial intelligence (AI) in the food and beverage sector is expected to exceed AU$45 billion by 2026, with Asia–Pacific slated as the fastest growing region.
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lready in use by pioneering businesses across the industry, it’s clear that AI is making its presence felt in more ways than one, impacting all aspects of the food supply chain, driving smarter, faster decisions and underpinning that all-important competitive advantage. Whilst many in the industry have heard of AI, there is still widespread uncertainty as to how AI technologies can be applied and just what benefits can be reaped. Put simply, AI has the potential to optimise all areas of food manufacturing, facilitating smart, industry-specific applications to improve every aspect of the supply chain, from farm to fork, building agile supply chains and driving revenue growth. Many regard AI as the machinery and technologies used to carry out complex tasks that previously required human thought to complete, but it goes even further than that, enabling new approaches to data analysis that simply are not possible to do manually. This is where AI comes into its own, with the ability to consider an inordinate number of data values, parameters, what-if scenarios and other contributing factors to produce accurate and timely recommendations for almost every aspect of the food supply chain. Ultimately, this provides a competitive advantage that would be impossible to replicate without the application of AI technologies. AI in the food industry comprises a number of technologies, from robotics to machine learning, so where are we seeing AI in action across the industry and what impact is it having?
Precision farming AI technologies are being used to bring new depths of precision to farming. So, this might be an analysis of past harvests in terms of both quantity and quality, in combination with weather forecasts to inform which fields need watering and when, or when to use fertiliser perhaps. In the aquaculture
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sector, there is a business that is using AI technology to ensure accurate doses of feed are administered in shrimp farming, avoiding over- and under-feeding. This serves to lower the feed conversion ratio and shortens the shrimp production cycle, doubling production without huge intensification.
Pricing strategy Again, taking into account numerous factors, the application of AI technologies can inform a more effective pricing strategy. AI applications can quickly and effectively analyse all contributing variables, such as seasonality, competitor pricing, promotions, customer demand, etc, building up a clear picture of pricing history and trends, to inform recommendations regarding which products should be sold at which price to maximise revenues. There is already a leading European bakery ingredients business doing just this, implementing the right technology to achieve optimal pricing recommendations for its wide range of products.
Mitigate against unpredictability Over the past two years in particular, the unpredictability of food supply chains has had a massive impact on food and beverage manufacturing. This is another area where AI can hold the key to unlocking new, better ways of working. For example, the right AI tools can predict sea vessel arrival times, helping manufacturers to more accurately forecast when their raw ingredients will be arriving. It is the level of detail that AI brings that makes all the difference. Not only can manufacturers secure a more accurate picture of when ingredients will arrive, but the technology can also factor in considerations such as how long deliveries will take to unload at the factory, instilling an even greater level of accuracy when it comes to scheduling production to optimise operations and maximise productivity.
www.foodprocessing.com.au
