Impact of Information Asymmetry to Quality in Food Manufacturing Organizations

10/23/2018 14:35 - 15:10

There is an insatiable consumer-appetite for organic, all natural, non-GMO, antibiotic free, and gluten free foods. The productions in these market segments are estimated to grow by 16% annually through 2020.

Consumers are redefining expectations for transparency and traceability in farm-to-fork supply chains in addition to demanding local sourcing, antibiotic-free, non-GMO, cage-free, etc. More food startup companies make claims of organic, all natural, non-GMO, antibiotic free, and/or gluten free. Major food companies pivot to offer new products in these categories. Compositions of our foods are shifting.

How does this market shift impact our food supply? How does this shift modify the shelf life of our food products? And, how does this shift affect food manufacturing organizations?

As new food products enter the marketplace, food manufactures will need to avoid costly recalls and potential consumer health issues by verifying food safety of products on the frontend. As foods approach being in productions, food manufacturers face more considerations about costs, quality control, and record-keeping. From sourcing to packaging and to tracking, food ingredients and finished goods come from all over the world.

Collaborations among supply chain partners and full integrations throughout networks of suppliers and customers are critical elements. Food companies that have fully integrated supply chain and customer networks are more liked to succeed, with access to the same information, working towards shared missions to deliver results, and being ahead of their competitors. Connected supplier and customer networks will allow food companies to be agile when faced with issues, responsive to recalls, and to be flexible and efficient.