The food and beverage (F&B) sector is under growing pressure. Consumers are demanding traceable sustainability and proof of where their food products have come from; retailers are pushing for faster fulfilment and tighter compliance; and margins are being squeezed by rising costs and supply volatility.
At the same time, the food and beverage sector must guard against operational failures that can have cash and reputational consequences, writes John Burgess, Director of Innovation, Balloon One.
This combination explains why many F&B businesses move cautiously with new technology, but it also creates a strong case for targeted innovation. When framed around clear business problems – spoilage, recall speed, procurement uncertainty and inventory – technologies such as AI, blockchain and advanced analytics have the potential to protect supply chain continuity, and unlock efficiency gains for organisations in the sector.
Navigating complexity in the F&B supply chain
F&B companies face a number of challenges unique to their industry. For example, companies are facing increased pressure to reduce their food wastage, with 8-10% of greenhouse gas emissions produced by food waste. This means they need to effectively manage challenges around perishable products, fluctuating demands around freshness, and evolving customer needs when it comes to product choice.
Businesses require a clear view into the right data to manage these demands effectively. But traditional, legacy processes struggle to meet this demand due to data being scattered across various points in the supply chain – and this is impacting how strategic and forward-looking F&B businesses can be.
There are different technology solutions that can offer a way to mitigate this lack of visibility into supply chain operations. For example, analytics and demand sensing directly improves forecast accuracy, reducing both wastage and lack of stock. Automated monitoring provides teams with earlier warnings on temperature changes so that corrective action can be taken. Blockchain creates a record that can’t be easily changed, which makes tracking and recalling products much faster. Together, these technologies solve real business problems now and businesses are starting to leverage them effectively across their supply chain.
The next evolution of leveraging data intelligently lies in AI-powered tools, enabling predictive demand planning, automated replenishment and smarter warehouse execution. This allows businesses to respond more dynamically to shifts in consumer behaviour, seasonality and supply disruptions. Rather than reacting to bottlenecks or shortages, companies can anticipate them and make proactive decisions, which is particularly critical in a sector where shelf life and timing are non-negotiable. In the warehouse, intelligent execution systems can automatically prioritise tasks, optimise picking routes and improve throughput based on real-time data.
These technologies enhance efficiency and build resilience, allowing supply chains to adapt to disruptions and maintain continuity in even the most volatile conditions.
Tech success rests in people and process
Technology alone rarely wins long-lasting change, and success also rests in prioritising people and process. Maximising any investment – whether it’s a relatively new tech like AI, or one like blockchain that has been around for longer but is now starting to see an increased integration into the supply chain – requires business leaders to manage change across the workforce to ensure employees are ready to embrace these solutions in the right way.
Alongside each tech implementation, leaders should install a small, cross-functional team that includes operations, quality and IT to own each deployment project, so safety and commercial objectives are balanced from day one.
Technology tools should also integrate with the already existing warehouse management system infrastructure so that processes remain in place for employees. This reduces human error and resistance, and it keeps continuity while the new solution proves its ROI.
Practical first moves and measuring success
Implementing new tech is a big investment and comes with pressure from stakeholders to succeed. The best way to integrate solutions such as AI, blockchain and analytics into the organisation is by focusing on one product, depot, or route which provides a quick read on operational impact, without jeopardising continuity at scale.
The pilot can then be used to test how the system works with existing tools, check supplier data, and improve alerts and procedures for operators. By the end of the pilot, the organisation should know if scaling makes sense and the work that needs doing to manage people and processes to deploy technology and automation safely.
Innovation in the F&B supply chain must be shaped by the sector’s unique constraints. AI, blockchain, and analytics can improve traceability, cut waste, and make procurement smarter without risking safety or operations. The companies with the most resilient supply chain operations will be those that pair cautious, risk-aware pilots for new solutions with clear metrics.
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