TraceGains, a prominent provider of compliance and quality solutions for the food and beverage (F&B) industry, has released a new report highlighting the critical need for modernisation within supply chains. Titled Old Habits, New Challenges: The Critical Need for Modernization in Food and Beverage Supply Chains, the report underscores how legacy practices are impeding suppliers’ ability to adapt to regulatory changes and evolving market demands.
The research, based on responses from over 450 global F&B suppliers, reveals that outdated approaches continue to plague the industry. This has left many suppliers inadequately prepared for upcoming disruptions, regulatory shifts, and the push towards more sustainable products.
Outdated Practices Hinder Efficiency
TraceGains’ report identifies a reliance on legacy methods as a major obstacle to efficiency. Nearly half of suppliers still depend on manual spreadsheets for managing daily tasks and document exchanges. This reliance on outdated tools is a significant barrier to achieving compliance and meeting new environmental, social, and governance (ESG) standards.
Key findings include:
- Manual Processes: Almost 48% of suppliers use spreadsheets for day-to-day management, leading to inefficiencies and errors.
- Operational Issues: Over two-thirds (71%) report that outdated processes frequently cause problems, with time-consuming tasks (60%) and data entry errors (39%) being the most common issues.
The Digital Divide
The report also highlights a growing digital divide among suppliers. A significant portion of suppliers—about 25%—are unaware of the technologies available to improve their operations. This lack of awareness, combined with recent food safety incidents and increased regulatory scrutiny, has made it clear that many suppliers are unprepared for upcoming regulatory changes and sustainability demands.
Upcoming regulatory changes, such as the FSMA Rule for Traceability (204) in the US and stricter ESG regulations in Europe, are set to enforce more rigorous standards. This is increasing the urgency for suppliers to modernise their internal processes.
Motivations for Modernisation
For those suppliers aware of digital tools, the main driver for modernisation is the need to keep up with regulatory changes, cited by 65% of respondents. Other motivators include:
- Consumer Preferences: 58% of suppliers want to respond faster to changing consumer preferences.
- Supply Chain Agility: 42% seek better agility to manage disruptions.
- Technological Advancements: 33% aim to adopt new technologies like AI.
Additionally, nearly half (44%) of suppliers are responding to shifts in consumer behaviour, including a growing preference for sustainable products and online delivery options. Alignment with corporate sustainability goals is seen as crucial by 89% of suppliers, with over half (53%) considering it very important.
Paul Bradley, Senior Director of Product Marketing at TraceGains, emphasised the urgency for suppliers to modernise: “With increasing regulatory pressures and shifting consumer demands, outdated methods are putting companies at risk. Embracing digital solutions is no longer just a competitive advantage—it’s essential for staying compliant and meeting market expectations.”
For more information on how F&B suppliers can leverage digital tools to enhance compliance, sustainability, and efficiency, visit TraceGains.
