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MES systems: sustainability and digitization in the agribusiness sector

MES systems: sustainability and digitization in the agribusiness sector

Thursday 10 August 2023

As many surveys claim, sustainability is one of the values most valued by consumers. For this reason, companies are adapting their business models in line with new customer expectations, focusing on ESG initiatives and digitization systems as a competitive differentiator.

MES software, in such a scenario, helps companies in the agribusiness sector to manage and automate business processes: on the one hand by facilitating data sharing among organizational areas and supply chain actors, and on the other hand by reducing inventories, waste and consumption and consequently increasing sustainability.

MES systems: More and more customers are turning to sustainable companies

Sustainability is a hot topic, especially among the younger generation. According to data collected by Casaleggio and Associates, 63 percent of consumers prefer to buy from companies that communicate their environmental impact, while 76 percent say that “responsibility for change” should not be a goal of governments but of companies.

Another statistic that might come as a surprise is provided by Capterra ‘s survey from two years ago, according to which: 39% of respondents say they are willing to pay up to 10% more than the original price for sustainable products, especially in the following areas:

  • transportation and delivery (45%)
  • food and drink (43%)
  • household products (42%)
  • clothing (44%)
  • cosmetics and wellness (42%)

To meet the ever-increasing demands of consumers, companies must therefore act in accordance with sustainability policies. Indeed, being a sustainable company means thinking about the long term and consciously reassessing its impact on the environment by adopting processes and products that do not hinder public health or harm the ecosystem.

Being sustainable therefore means reducing one’s environmental footprint by promoting green policies, such as using renewable sources to reduce pollution or promoting sustainable practices during the production and delivery of products, managing the materials used for packaging better, and limiting waste.

Sustainability and digitization with MES software

However, conveying to customers their commitment to sustainable and ethical business models can also be an important opportunity to differentiate themselves and become more competitive.

Awareness of sustainability among consumers, as we have seen, is growing rapidly, and by demonstrating a clear vision of their commitment to environmental and responsible policies, organizations can build meaningful customer relationships and benefit from the resulting reputation: that is, improve self-perception among the public and achieve greater economic success.

According to Rockwell Automation ‘s 2023 study-which is based on responses from 216 consumer packaged goods (CPG) leaders in 13 countries:

  • Forty-two percent of companies are accelerating digital transformation to keep up with competitors, while 44 percent are doing so to improve quality.
  • On average, companies in the CPG invest just over one-fifth of their operating budget in technology with the top three investments in cloud technology (45 percent), supply chain planning (42 percent) and cybersecurity (41 percent).
  • 57% of companies use software to automate processes, and 63% use it to better monitor business data.
  • Ninety percent of CPG manufacturers believe they will maintain or increase the size of their workforce due to technology, with 38 percent planning to reuse their existing workforce and 29 percent planning to hire more workers due to technology adoption.
  • In practice, 31 percent of CPG manufacturers report that smart manufacturing initiatives have helped them cope with the impact of the COVID-19 pandemic and keep pace with market transformation.
  • Ninety-five percent of FMCG manufacturers have ESG initiatives in place, with 44 percent pursuing sustainability and ESG initiatives as a competitive differentiator.

For food and beverage manufacturers, an MES system can shift the corporate culture toward improvement in sustainability, such as reducing paper consumption and food waste and improving product stewardship, but let’s get to the heart of our article.

The MES System in the Agribusiness Sector

What we are currently experiencing is the moment of digitization in the food and beverage industry. More than just a trend, digitization of operations is (and will be) essential to remain competitive and meet the requirements set by safety and quality standards.

Achieving this goal is simple, but theuse of an MES system becomes essential.

A MES software (Manufacturing Execution System) can help companies be more digitized and more sustainable.

One of the main aspects of MES software is that it provides a complete view of the production process, from input to finished product, so that any problems can be quickly identified.

This is useful because it saves time and money by eliminating inefficient waste and providing a clear view of the use of resources such as raw materials, electricity, and water. This enables decisions to be made based on environmental and energy performance to reduce environmental impacts.

Indeed, the right MES software-modern, flexible and customizable-can identify opportunities for improvement, product innovation and food safety, as well as identify bottlenecks in the supply chain.

Take for example our AGRONET MES for dairies.

Agronet Dairies is an MES, designed for the agri-food sector and customizable to meet the needs of any company, that optimizes all processing steps, traceability of batches, handling and deliveries, and management of storage tanks and the laboratory.

With an MES system, it is possible to manage:

  • the conferees and the registry
  • milk delivery
  • The storage and handling of tanks
  • The production of curds, cottage cheese, fresh and aged cheeses
  • multipurpose management
  • packaging and shipping
  • production tracking and traceability
  • laboratory analysis and quality
  • Integration to production machinery (Industry 4.0)
  • Logistics management with intelligent warehouse mapping

All this through a single solution, technologically advanced masimple to use, even by those who are reluctant to technology, and above all easily implemented with business processes.

MES systems are thus a powerful tool that provides operational coordination and performance analysis to refine communication, optimize operations, and make strategic decisions through a holistic view of production and automated data collection.

In this way, problems can be detected in the exact time and location on the production line, and the quality, traceability and tracking of raw materials and finished product can be monitored, in real time.

The advantages of an MES system are undeniable:

  • Availability of real-time production data with objective indicators
  • Fast retrieval of finished product data
  • Easy inventory control and inventories always tracked
  • Increased production performance and resource efficiency
  • Maximum operational flexibility
  • Traceability of batches, product movements and deliveries
  • Label design and customization

In conclusion, we can say that for agribusinesses that want to be sustainable, the MES system is the brain to which all ERP systems are connected.

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