**London**: A new report by TraceGains highlights pressing issues in the food and beverage industry, revealing that many suppliers still rely on outdated methods. With looming regulatory changes and shifting consumer preferences, the call for digital transformation has never been more urgent.
TraceGains, a provider of networked compliance, quality, and innovation solutions for the food and beverage industry, has recently published a report entitled “Old Habits, New Challenges: The Critical Need for Modernization in Food and Beverage Supply Chains.” This report assesses the state of supplier readiness and sophistication within the sector in light of changing regulatory landscapes and evolving market demands.
The study draws on feedback from over 450 global suppliers in the food and beverage sector and reveals significant concerns regarding existing operational practices. A notable finding is that 48 per cent of suppliers continue to rely on manual spreadsheets for daily tasks, processes, and document exchanges. The report indicates that these outdated methodologies are obstructing the industry’s ability to adapt to anticipated disruptions, comply with regulatory changes, and meet the growing consumer demand for sustainable products.
Further analysis in the report highlights that 71 per cent of suppliers recognise the challenges posed by these outdated processes, with 60 per cent specifically pointing to time-consuming tasks, while 39 per cent acknowledge data entry errors, and 32 per cent report issues stemming from miscommunication. The lack of modernization is partly attributed to a general unawareness among suppliers, with 25 per cent admitting they are unfamiliar with existing technologies that could improve management of customer relationships with food and beverage brands.
The push for modernization among suppliers is also being driven by regulatory pressures. The forthcoming FSMA Rule for Traceability, set to take effect in January 2026, mandates lot-level traceability for specified food materials in the U.S. Meanwhile, tightening European Environmental, Social, and Governance (ESG) regulations are reshaping industry practices across Europe.
Among the suppliers surveyed, 65 per cent who are aware of relevant technologies identified “keeping up with regulatory changes” as the foremost motivator for modernising their internal software systems. Other critical drivers include the need to adapt swiftly to changing consumer preferences—cited by 58 per cent of respondents—managing supply chain disruptions (42 per cent), and the integration of emerging technologies such as artificial intelligence (33 per cent).
Additionally, the study reveals that nearly half of the suppliers (44 per cent) acknowledge their operations are significantly influenced by evolving consumer behaviours, including a marked preference for sustainable products and online delivery options. Almost 89 per cent of participants believe that aligning with corporate sustainability goals is a vital consideration, with over half (53 per cent) categorising this alignment as very important.
Paul Bradley, Senior Director of Product Marketing at TraceGains, underscores the necessity for suppliers to adopt contemporary digital solutions. In conversation with MRO Magazine, Bradley stated, “This new research underscores the urgent need for suppliers to update their operations. With increasing regulatory pressures and shifting consumer demands, widely used, outdated methods are putting companies at risk. Embracing digital solutions is essential not just for staying competitive, but for meeting compliance, sustainability, and market demands.”
This report suggests that the food and beverage industry is at a crucial juncture, where adapting supplier relationship management and procurement strategies from a focus on mere cost management to value creation through collaboration and resilience may become essential for securing competitive advantages in the future.
Source: Noah Wire Services
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