Regulatory changes top motivator for supply chain tech upgrades

BACK TO ALL NEWS

Regulatory changes top motivator for supply chain tech upgrades

10 Sep 2024

Mari Rydings

Mari Rydings is a versatile content creator, editor and marketer with experience developing dynamic, results-driven materials for B2B and B2C audiences. As the editorial director for Avant Food Media, she leads the day-to-day editorial operations for the company’s print and digital magazines, newsletters and social media platforms. Outside of work, she loves reading, hiking, putting together jigsaw puzzles and spending time with her husband and their twin daughters.

WESTMINSTER, CO — “Old Habits, New Challenges: The Critical Need for Modernization in Food and Beverage Supply Chains,” a new report from TraceGains, a leading provider of networked compliance, quality and innovation solutions in the food and beverage (F&B) industry, measured the readiness and sophistication among suppliers to manage regulatory changes and market influences.

A survey of more than 450 global F&B industry suppliers revealed:

– Nearly 50% of all suppliers rely on legacy systems such as spreadsheets to manage communications with their buyers
– 48% use manual spreadsheets to manage day-to-day tasks, processes and document exchanges
– 71% reported that outdated processes sometimes or often create issues in their daily work
– 60% said their biggest issue is time-consuming tasks, followed by data entry errors (39%) and miscommunication (32%)

According to the report, many suppliers are inadequately prepared for the next significant disruption, regulatory changes, and consumer demand for more sustainable products. Additionally, relying on outdated tools could impede a supplier’s ability to achieve greater efficiency; maintain compliance; and meet evolving environmental, social, and governance (ESG) standards.

For example, in January 2026, FSMA Rule 204, also known as the Food Traceability Rule, will enforce lot-level traceability for specific food materials in the US. At the same time, strengthening European ESG regulations are reshaping industry practices across Europe.

TraceGains attributes the continued use of less sophisticated systems partly to a lack of awareness. The survey found that one company out of every four is not familiar with the advanced technology available to more effectively and efficiently manage customer relationships.

– Of those familiar with technology, 65% cited keeping up with regulatory change as the top motivator for modernizing internal software
– Other contributing factors include faster responsiveness to consumer preferences (58%), better agility to manage supply chain disruptions (42%), and the ability to adopt tech advancements like AI (33%)
– 44% said evolving consumer behavior, including a preference for sustainable products and increased demand for online delivery, has had a significant or moderate impact on business operations
– When it comes to decision-making, nearly 89% indicated alignment with corporate sustainability goals is a crucial consideration, with 53% rating this alignment as very important

“Embracing digital solutions should no longer solely be seen as a competitive advantage — it’s required for staying ahead and meeting compliance, sustainability and market demands.” — Paul Bradley | senior director of product marketing | TraceGains

“This new research underscores the urgent need for suppliers to update their operations,” said Paul Bradley, senior director of product marketing at TraceGains. “With increasing regulatory pressures and shifting consumer demands, widely used, outdated methods are putting companies at risk. Embracing digital solutions should no longer solely be seen as a competitive advantage — it’s required for staying ahead and meeting compliance, sustainability and market demands.”

Learn more about how F&B suppliers can leverage digital tools to achieve compliance, sustainability, and efficiency goals on TraceGains’ website.

Advertisement

BACK TO ALL NEWS