Do you hear that, food industry?
Talk of a recession is in the air. Maybe it’s coming? Maybe it’s already here? Whether this proves to be fact or fiction in 2023 of course remains to be seen as we ride the oncoming economic waves created by inflation, international conflict, and politics.
But little doubt remains that the vessel to ride any potential storm is advanced technology. Like a ship venturing into turbulent seas, technology has proven to be a business driver during downturns of revenue, and should never be seen as a cost center.
Most companies understand this. A recent survey showed that leading companies are preparing for financial challenges by increasing their tech budgets by around 5.5% in 2023. According to another survey from Gartner, 85% of CEOs intend to increase digital investments, and 94% want to “maintain or accelerate pandemic-driven digital transformation.” Supply chain reinvention and reducing complexity are top priorities.
In other words, the most successful companies are the ones that build a bigger and stronger technology vessel to withstand the economic waves before they hit. Now is the time to make that investment.
Building Your Technology Vessel: No One Left Behind
Ideally, your technology should be big enough to carry your entire company through the recession tempest, not just one or two departments or divisions. There is strength in numbers. Several smaller vessels are more sinkable than one larger one.
The best investment is to consolidate cross-functionally into a fully integrated tech stack that works together to fight the storm. Siloed point-solutions only benefit a single department and can be easily swept away.
Departmental Priorities During a Recession
Your operations department must be given prime quarters during challenging times. This is where revenue is generated, and your customers are touched directly.
Additionally, your supply chain team is also at the front of the line, which includes distribution, procurement, food safety, and quality. Without this team (and products to sell) you have no customers.
Finally, where would a company be without supporting departments such as IT, legal, and logistics holding everything together? Especially as companies invest in technology, having those supporting roles protect your business from outside threats – whether malware attacks or legal trouble – is vital to your vessel surviving the storm.
FoodLogiQ Connect: A Recession Resilient Vessel
Let’s complete the metaphor: what makes FoodLogiQ such a powerful vessel for the recession? Leading food brands like Tyson, Chipotle, Conagra, Whole Foods and others have chosen the cross-functional, full-platform, enterprise-level technology of the FoodLogiQ Connect Platform for a reason. It has been a proven solution for the entire supply chain since 2006, and this is not the first economic storm FoodLogiQ has had to navigate.
Our platform is set up for success across departments. Here are some examples:
- Operations: Quickly and easily report quality issues, get credits more effectively, know best-by dates of products received, get replenishment during a recall, and use your limited resources to stay focused on your customers.
- Supply Chain: Track and rate your suppliers to know which are most trusted in times of product shortages. You can also onboard new suppliers within days instead of weeks so your operations can always have the top-quality product it needs.
- IT: Align data and strategies through integration and augmentation of disparate and siloed systems. With better alignment, you can reduce errors and redundant processes, rely less on manual inputs, and labor (which can be in limited supply during economic downturns).
- Food Safety and Quality Assurance (FSQA): Support FSQA operations with better visibility and control over products being received by your operations team. Use the platform to ensure relationships with key suppliers stay strong through the most difficult times. Look to automate redundant tasks so your team can do more with less people, and so you can focus on what’s most important.
- Legal and Risk Management: With the FSMA 204 deadline on the horizon (2026 will be here before you know it), you can lean into our Connect Platforms’ capabilities for enhanced traceability recordkeeping to streamline documentation and FDA compliance. Plus, you can automate and manage communications to suppliers, and support your FSQA and operations teams in mitigating risk in the event of a recall or withdrawal that could damage your brand.
As we face economic uncertainty, now is the time to invest into the best technology so you can weather any storm your company faces. Interested in seeing what FoodLogiQ can do for you and your company? Let’s talk!