Seven months into the COVID-19 pandemic, the food & beverage industry is different than it was at the beginning of 2020.

The question is, what exactly has changed about the way food & beverage manufacturers operate?

How is the marketplace different? (And how long will the changes last?)
Is now the right time to invest in an ERP solution?
Are plans to implement new technologies canceled, delayed or going forward?
Which ERP toolsets are the most valuable in this “non-normal” environment?

To get answers, Plex Systems (provider of Plex Manufacturing Cloud) and business technology consultant NexTec Group recently conducted surveys to assess the state of the food & beverage industry amid the pandemic. And accounting/consulting giant KPMG put out a report on the impact of COVID-19 on the industry.

We’ve taken some of that insight to create a new infographic.

Ultra Insights: COVID-19 and the Food & Beverage Industry

How has the pandemic changed the way food and beverage manufacturers and processors operate?

How have your technology investment plans changed due to COVID-19?

Most food and beverage manufacturers say they still plan to invest in enabling technologies. And a significant number of companies that had not planned to spend on technology are budgeting for it now.

59% still planning to invest
25% no longer planning to invest
16% did not plan to invest, but are now

34% said they are considering upgrading or purchasing CRM software. Other solutions high on the list: HR management software (25%), quality management systems (22%) and supply chain software (21%).

Changes driven by COVID-19, such as the shift to ecommerce, as well as the importance placed on food safety and supply chain traceability, are going to be lasting.

The Top 8: Which applications are most valuable during the pandemic?

Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Human Resources (HRMS/HCM)
Accounting
Warehouse Management System (WMS)
Quality Management System (QMS)
Materials Requirements Planning (MRP)
Business Intelligence (BI)

85% said ERP software was very important or somewhat important.

How has COVID-19 affected your business and operations?

45% Demand increase
40% Supply chain shortage
37% Demand decrease
33% Negative impact, but managing
16% Has had little impact
13% Having issues meeting higher demand
10% Cashflow is a problem
7% Business as usual

It’s impossible to be agile and nimble (not to mention achieve full traceability, comply with food safety compliance requirements and deliver quality products) when you’re managing your manufacturing operations on paper with manual processes and outdated systems.

Sources: Plex Systems, “5th Annual State of Manufacturing Technology Report” (Survey of Food and Beverage Manufacturers), 2020; KPMG, “COVID-19: Food and Beverage Sector Dynamics,” 2020; NexTec, “Food & Beverage Manufacturing Industry Study” (Special Edition: COVID-19 and the Food & Beverage Industry), 2020.

Want to know more?

Read the Plex survey report, “Smart Technology Will Save Your Plant Floor: Here’s Why”
Read the NexTec survey report, “2020 Food & Beverage Manufacturing Industry Study”
Read the KPMG report, “COVID-19: Food & Beverage Sector Dynamics”

6 Software Selection & Implementation Pain Points + Solutions

Software selection and implementation processes often present challenges of their own. To steer you around trouble and help you drive success, Ultra’s experts compiled a list of pain points and solutions to be aware of as you embark on this journey.