Advanced Technology Integration in Food
Advanced Technology Integration in Food
Advanced Technology Integration in Food
Abstract— The applicability of trends in industries' practices have been identified by various researches as one of
production, logistics and supply chain management has increased the solutions to threat of environmental degradation [1].
productivity, efficiency and less adverse environmental impact. Sustainable food manufacturing and supply chain management
Sustainability is one of the trends identified and percept by could be one of the relevant and desirable actions in the food
various researches as what every industry could consider industry in order to meet the “Sustainable Development
ensuring a better future for the environment and prosperity in Goals”. Most industry is working hard to contribute to the
most sectors. Meanwhile, the application of different new achievement of these set goals. "Food manufacturing and
technologies and the current digitalization is helping in achieving supply chain management have always been a global challenge
the said sustainability trends within the manufacturing industry.
that needs to be addressed [1], this is because food demand will
This study, therefore, aims to investigate through literatures and
a case study how well integration of advanced technology has
always increase daily as a result of the population growth.
impacted sustainability and growth within food manufacturing Food demand has tripled in the past 55 years (1950-2015)
environment. Integration of advanced technology to aid following the world population growth" [2]. This demand will,
sustainability within food manufacturing and supply chain result in a continual increase in the demand for natural
environment will be investigated through a case study in an resources used in production and through the entire supply
agricultural-livestock cooperative company in Andalusia, Spain. chain system within the food industry. In addition, challenges
Meanwhile, with the combination of the literature review carried such as food security, health and safety, food waste, fair trade,
out and the explorative research through case study where climate change, etc. in the food industry create concern daily
specialists and experts in sustainability, food manufacturing and about environmental sustainability in the sector [1].
supply chain management were interviewed. The research was
able to highlight the impacts of the innovations and integration of There have been questions like how best can food
advanced technology within food manufacturing and supply manufacturing supply chain environment be made sustainable
chain environment with a brief sustainability evaluation using with these existing and developing challenges? How can the
the analysis of the company’s KPI. triple bottom line (TBL) of sustainability (i.e. Social,
Environmental and Economic) be met with the problems in the
Keywords—Sustainability, Innovation, New Technology, industry? Meanwhile, as suggested by Reg. 1305/15 of
Supply Chain Management, Food Manufacturing European Parliament, “short supply chain in the food industry
could help in sustainable agriculture through the reduction of
I. INTRODUCTION transportation, thereby cutting down on CO2 emissions” [3].
This strategic regulation will help but could only cover a little
Prosperity in most businesses and enterprises these days part of the food manufacturing and its supply chain, but more
especially in manufacturing depends on the understanding of strategies would still be needed to achieve better sustainability
trends of which sustainability or sustainable practices is vital. and prosperity. Meanwhile, such approaches could be applied
However, the applicability of new technology could be in several ways with the integration of innovations and new
complementary to this trend for improved efficiency and technology to meet the triple bottom line (TBL) of
prosperity in any business or enterprise. Urbanization and sustainability, and this could go a long way to improve food
climate change could be predicted to increase in the next few manufacturing and supply chain management. This paper looks
decades especially in the emergent nations of the world as a into innovation and advanced technology in food industry,
result of infrastructure and technology development needed to sustainability trends, transformation of food supply chain and
meet up with the present population growth. It is evident that sustainable food production. It goes further to analyze
human activity and generation of greenhouse gas emissions is sustainability in food manufacturing supply chain environment
affecting the world today in the form of global warming and using information from a case study company.
climate change. Therefore, sustainability and sustainable
II. LITERATURE REVIEW demand and supply predictions and thereby assist in better
production plans which controls food wastes [9]. Automation,
A. Innovation and Advanced Technology in Food Industry intelligent robotics and additive manufacturing promote better
Innovation is an idea identified or perceived as new by an productivity and reduce the risk of both food safety and
individual or group of persons as a solution or improvement to incidents associated with health and safety [10]. Tracking and
social or technological problems or changes [4]. Innovation can real-time monitoring of products using some advanced
said to be the implementation of new ideas after combining technology like sensors, Radio Frequency Identification
resources and productive forces perceived through creative (RFID) tags, barcodes etc. will be reasonably good in
thinking to solve a specific problem or improve on the existing addressing most of the associated problems within food
situation [5]. Innovation within the food industry has become a manufacturing and supply chain environment [8]. These
thing of interest because of its importance [4]. This innovation technologies and many more could reduce wastes and
is an essential process in the food industry that could bring unnecessary movement of products with better means of
improvement to food safety, food security as well as improve communication and thereby reducing GHG emission and
the triple bottom line (TBL) of sustainability, the, i.e. social, carbon footprint [7].
economic and environmental situation within the industry's
supply chain. Innovation strategy should be considered B. Sustainability Trend
throughout the entire supply chain in the food industry for The revolution for sustainable development started in the
improvement; it should all start from the point of harvest or year 1987 during the conference of the "World Commission on
raw material sourcing, processing or manufacturing and Environment and Development" as shown in the 1987
throughout the entire distribution network till it gets to the final Brundtland report [11]. This decision came up as a result of
consumer. Some researchers have concluded that "Innovation concerns of fulfilling the current needs of the society without
in food industry combines technological innovation with social adverse effect or decrease in the needed resources for future
and cultural innovation to further improve consumer products generations. The word sustainability has now recently become
and services" [6]. However, food industry innovations and a common word especially within manufacturing and research
strategy should be emphasized for sustainability especially at environment, and it is perceived to be one of the basic things
this period of planned Sustainable Development Goal (SDG) that could be used to save continuous human existence [12]. It
for environmental and human protection. There should be a is one of the major topics trending and appears to be an
proper assessment of the environmental aspect of food important topic of discussion in this modern-day
manufacturing and this will, in turn, strengthen the social and manufacturing, production and services. Sustainability was
economic point of the industry. Food industry innovation and made popular and trend to regulate the negative impact of
strategy should not only be directed entirely at technology industries on the environment, socio-cultural and ecological
changes in the food industry, but the social and environmental living [13]. Various authors and researches defined
changes also need to be considered to ensure production of sustainability in the past with the consideration of the
food that satisfies the nutritional, personal and social needs of important bottom lines surrounding the creation of the word.
the consumers [6]. Sustainability can say to be ways by which economic decisions
In any food business and the food industry in general, could be made considering the future while ensuring ecological
studies had identified innovation as one of the primary drivers balance is maintained as much as possible [14]. Meanwhile, the
for growth and the main aim of this is to make sure that good United States Environmental Protection Agency (U.S. EPA)
and healthy foods are produced in an efficient, effective and came up with a definition of "sustainability as a process of
sustainable way [7]. Application of new technology in food developing and balancing human technological and economic
manufacturing supply chain could support sustainable needs in productive harmony with nature, giving fulfilment to
practices, and this could go a long way to help in achieving the cultural, economic, social and environmental requirement to
needed sustainability within the food industry. Implementation the present generations while putting the future generations in
of the latest technology (industry 4.0) within food consideration [15].
manufacturing will be of high benefit to the food industry Sustainability as a trend looks into working out the
especially for sustainability purpose [7], and this will fulfilment of current needs of the society with balance in the
undoubtedly support the sustainable production which every social, economic and environmental goals. It is now evident
enterprise is striving to achieve. The application of this that every business and industrial sector are adopting
advanced technology could go a long way to address a lot of sustainability and sustainable practices as a tool for
the identified issues like food safety, food security control, development as they now integrate sustainability into their
perishability, competitive pressure, difficulty in demand operations as a strategy to effectively grow and improve their
predictions etc. within the food manufacturing settings. The productivity [13]. This trend has further inspired firms to
digital technology imbibed in the latest industry 4.0 technology develop a series of sustainable supply chain models presented
in addressing these problems. For instance, Internet of Things for public acceptance and cost reduction in products and
(IoT) is applicable in tracking of orders and other services [14]. However, different motivations have been
Transportation Management Systems (TMS) which ensures propelling organizations and businesses to improve their
food safety, promotes new product development through corporate social responsibility (CSR) and corporate
consumer’s feedback, bridge communication gas to help the sustainability performance, thereby contributing to global
Just-In-Sequence (JIS) and Just-In-Time (JIT) process needed sustainable development [13]. Apart from the fact that this is a
to meet customer’ immediate needs [8, 9]. Big data is useful in
2019 IEEE Technology & Engineering Management Conference (TEMSCON)
right approach on product improvement and profit environmental impact reduction, conservation of energy and
maximization, organizations now respond to the call of other natural resources [22]. The food industry at this point
sustainability and sustainable practices due to retail needs to take sustainable production seriously to meet up with
requirements and other regulatory policies put in place for sustainability trends and also the set Sustainable Development
ethical responsibility [16]. Several kinds of literature after an Goals (SDGs) [23]. Sustainable food production can be
extensive review including the Brundtland report have been described as "technical process involving the reduction in use
able to conclude that the main pillars of sustainability are of raw materials, energy and water consumption as well as
environmental protection, socio-cultural development and allowing smooth recycling of by-products while ensuring high
economic development [14]. Meanwhile, some of the identified quality and food safety" [23]. This sustainable food production
primary goals of sustainability and sustainable practices could only be effective if the sustainable practice is applied at
include; Reduction or total eradication of poverty and hunger every stage of the supply chain i.e. from the raw material stage
especially in the emergent nations of the world. Development until it gets to the consumer. This sustainable food production
and promotion of sustainable economic growth, reduction of through the entire supply chain is important because it was
greenhouse gas emission to control climate change and global recently stated that "agricultural production is estimated to
warming, promoting a better standard of living, and protecting contribute about 50% emission greenhouse gas emission within
the environment from further degradation and depletion [17]. the food supply chain networks" [24]; this is why every part of
the food supply chain environment is essential in terms of
C. Transformation of Sustainable Food Supply Chain and sustainable practices. Hence, sustainability in the food supply
Production chain environment could mean balancing food demand,
calorific and nutritional supply with the efficient use of
Different innovations and technological advancements
resources while economic, environment and social factors are
generally influence digital transformation, this has made most
put into consideration [25]. The associated environmental
firms to revolutionize their operations and supply chain
impacts could include greenhouse gas emissions, energy use,
management through digitalization [14]. This decision is
water use, food waste and packaging waste while the social
effective in general supply chain management as it properly
implications could be ethical trade, nutrition value and food
harmonizes every part of the supply chain i.e. the local,
safety [24]. Although sustainable production within the food
regional, national and international supply chain and
industry could be difficult, but adoption of some sustainability
operations [18]. This transformation within industries is
approaches will still be useful in achieving the best sustainable
believed to help attain the needed sustainability within
food production [26]. These sustainability approaches could
production, operations and supply chain management.
help in reducing the environmental and socio-economic issues
Meanwhile, achieving sustainability within any firm is
within the food industry, and they include; energy
paramount as it enables them to meet up with the
conservation/use of renewable energy, use of renewable
environmental standards and regulations, improve efficiency,
materials for production, water conservation, reduced
improve productivity, improve organizational quality, meet up
transportation, waste reduction, recycling and proper waste
with Corporate Social Responsibility (CRS), improve
management etc. [27].
customer satisfaction, improve on their competitive advantage
etc. [14, 16]. The food industry is not left out in this
transformation process and therefore use this in ensuring III. METHODOLOGY
sustainable food production and supply chain management.
Several innovations and integration of advanced green A. Research Approach
technology are used as tools within the food industry to This paper has been able to look into the strategic approach
achieve the needed sustainability; for instance, the and integration of the advanced technology in food
introduction of renewables, sustainable raw materials, waste manufacturing and supply chain environment to achieve the
management, and energy efficient practices/equipment within new sustainability trend. This was achievable with an analyzed
operations and supply chain management in the food industry case study that was carried out within a big food manufacturing
[7, 19]. company. The importance of case study in hypotheses'
verification, research clarifications and framework
D. Sustainable Food Production development cannot be overestimated in academics and
The daily increase in the demand for food due to the present research environments. It can say to be one of the best methods
and predicted population explosion needs an approach for food that have been in constant use within a research environment in
manufacturers to meet up with the market. However, this terms of the qualitative research approach [28, 29]. This
approach needs to put future generation and environment into research paper has therefore engaged the application of both
consideration; i.e. sustainability needs to be the key in any primary and secondary research approaches. The secondary
proposed plan. Sustainable practice within food production is aspect of the research reviewed and explored some existing and
critical especially with the latest development of global recent literature on the sustainability trends and sustainable
warming and unfavorable climate change and some other practices, Sustainable food production and supply chain,
socio-economic issues [20]. Meanwhile, Sustainable practices transformation of food supply chain, innovations and new
within food production environment have not been taken technology within food manufacturing environments amongst
seriously like most sectors, and just little of this has been other. However, this study fulfilled the primary aspect of the
researched into lately [21]. Sustainable manufacturing is the research by engaging a case study which strictly relied on in-
new practice in most industry, and it helps in adverse depth semi-structured interview within a food manufacturing
2019 IEEE Technology & Engineering Management Conference (TEMSCON)
supply chain environment. This case study was carried out to Sovena [32]. Meanwhile, after research has been able to
explore the approaches that the food industries are using to identify Andalusia as a region that is most suitable for this
meet up with the sustainability trend and how this is affecting research, the research selection process further considered
the company's performance in terms of productivity, efficiency some factors in company's selection to ensure better
and profitability. representation of food manufacturing supply chain within the
selected Andalusia region. The final selection of the case
B. Case Selection study firm was made considering factors like the size of the
The case study selection is important and gives a good supply chain, information access, sustainability consciousness,
insight into any subject matter [29]. This research therefore honest responses and cooperative approach.
critically examines the best environment and firm that could
give good insight into the approach of achieving sustainability C. Data Collection
within a food manufacturing environment. The google search The research used explorative methods combining both
and other research and analysis of food production in Europe primary and secondary research. The methods of use in getting
identified Spain as one of the leading and key food-producing data from the case study firm were questionnaires, semi-
area in Europe. This industry has been identified as a key structured interviews and direct observations through on-site
player in the Spanish economy with full potentials of future visits to the firm's factories and other production facilities
contribution to Spanish and Europe economy at large [7]. within the value chain. The research questionnaires were sent
The Instituto Nacional de Estadística (INE) industrial survey to the firm some weeks before the management of the company
of December 2014 was able to conclude that Spanish food and was able to arrange a series of meetings and interviews with
beverage industry is the fourth largest in Europe and eighth in the experts and professionals in various departments. These
the world [30]. This industry remains the first industrial professionals were selected based on their knowledge,
branch in Spain with about 20.5% of net product sales experience and involvement in the innovative strategies within
(€93,396million) average per annum, 17.8% of investments in the firm's operations and value chain. The firm believed these
tangible assets and 18.3% of employed people with a total of people were the best to give accurate, unbiased and all
353,965 people [30]. The Spanish food and beverage industry necessary information on the research. The semi-structured
have various sectors and fig. 1 analyzed in numbers of interviewed which gave open-ended questions featured five
companies according to their sectors within the industry. key professionals and experts in supply chain and operations
management within the firm which include; Head of Quality
Control, Head of Supply Chain and Operations Management,
Operations Manager (Animal feed mill plant), Production
Manager/Contractor in Meat production and the Procurement
Manager. The on-site/physical observations gave a better
understanding of earlier scheduled interviews. Finally, the
research also acquired some additional data and information
from various documents of the firm like annual reports,
corporate website etc.
A. Company’s Background
The research finally selected the firm CP for the case study
Fig. 1. No. of companies in the Spanish food and beverage industry by sector is a cooperative group of companies which combines three
Source: INE, Ministry of Agriculture, Food and Environment, 2016 sectors of food manufacturing in one company. This firm is
into animal feed products, varieties of dairy products and meat
The food industry is crucial and remain one of the most production. The firm CP which is believed to be farmers'
important industrial sectors in Andalusia as it represents the company has the interest of coming up with minimum
high number of food production turnover in Spain [7]. production cost profitably and sustainably. The firm has,
Andalusia is a Spanish region known for agricultural therefore, come up with different innovative and strategic
production with different arable crops, fresh fruits and approach of which one is the integration of advanced
vegetables and dairy products all year round [31]. This has technology in its operations to manage its entire food
strengthened the food and beverage manufacturing in this manufacturing and supply chain environment effectively. The
region with more than 5,000 companies which generate over firm is one of the strongest cooperatives in Spain and
€13 billion annual revenue, employing well over 50,000 confirmed leading cooperative company in Andalusia with
people and with the most significant ecological production over 600 employees, about 16,000 livestock partners with a
that accounts for about 54% of Spain's production and the turnover of approximately €400 million. CP has three
complementary productions which share include; Livestock
food industry has a 4.5% share of the GDP [32]. Moreover,
feeds (30%), Dairy Products (50%) and the Meat Products
ecological production is expected to double by 2020; major (20%). The firm can boast of a compound feed factory for its
industry players in Andalusia include well-known companies entire hut and has the world modern beef and dairy cattle and
such as Cargill, Danone, COVAP, Heineken, Kraft Foods or milk, goat and Iberian Pig.
2019 IEEE Technology & Engineering Management Conference (TEMSCON)
specifications from consumers’ point of view through However, sustainability in food manufacturing considering
feedback over the internet. This has given room for the our case study could be evaluated using different evaluands
identification of new products, flavours and packaging that are and Key Performance Indicator (KPI) of the case study
suitable for the customers. It has improved the customers’ company. The case study company have an excellent Key
retention and loyalty level which strengthens the competitive Performance Indicator (KPI) in place and the representative of
advantage of the company which in turn improves the the company claimed this is in constant use to evaluate the
economic sustainability of the company. company’s sustainability and progress on yearly basis and is
b) Automation and Smart Manufacturing: The use of always incorporated into the company’s sustainability report.
new technology that includes Artificial Intelligence, Big Data, There had been tremendous improvement in terms of progress
Cyber-physical systems, cloud computing, Internet of Things and sustainability at every integration of new or advanced
etc. for the coordination of the company's entire supply chain technology in production and supply chain systems. These
has brought a lot of improvement in the case study company. improvements could best be summarized under the main
This has improved productivity and efficiency in operations as sustainability dimensions i.e. Environmental, Economic and
a result of interconnected data gathering systems that gives Social where the company’s drafted KPIs were applied.
fast connections and interactions between everybody involved Meanwhile, social KPIs were designed and considered around
in the manufacturing and supply chain environment. This has employees, community and supplier; the economic KPIs were
resulted in a better working environment, better resource categorized under quality, cost, delivery and flexibility while
control in terms of both human and natural resources, waste the environmental KPIs were considered under pollution,
reduction, better waste management etc. This had enormous resource utilization and waste. Table I summarizes the
implications for the environmental, social and economic sustainability evaluation outcomes through the social,
sustainability. economic and environmental sustainability of the case study
company in relation to its prosperity and how it supports the
c) Sustainable Supply Chain Integration: The use of Sustainable Development Goals (SDGs).
these new technology gives room to good supply chain
integration, and this has been effective in production as it TABLE I: SUSTAINABILITY EVALUATION
impacts high food quality control. A well-integrated supply Sustainability
Outcomes
chain system affects production control and ensuring high Evaluands
Social Improved food security, excellent food quality,
quality at every stage of the supply chain is secure until the accessibility, guaranteed health and safety, improved
products get to the consumers' tables. This has also been very standard of living, direct and indirect employment
helpful in accurate customers demand predictions and thereby generation, human empowerment and development,
helping the company to control the quality and quantity of raw cleaner community, Corporate Social Responsibility
(CSR), community development, city population/
materials to ensure food safety and improved the shelf life of congestion control.
the products. Economic Improved energy savings, self-power generation,
d) Traceability and Easy Food Recall: The use of new water conservation, low-cost production, improved
customer’s purchasing power, better production
technology has given an opportunity for easy and effective control, better raw materials control, improved
communication in food manufacturing and supply chain productivity, improved efficiency, cheap products
environment. Therefore, the traceability and easy recall of any turn out.
contaminated food are now achievable. This has also Environmental Good management of Natural resources, Energy
conservation, renewable energy usage, good water
influenced the early detection of contaminated food and quick conservation, Responsible Waste Management,
recovery of such before getting to consumers' table. This has Controlled sanitation, mitigation of Greenhouse Gas
over time have social implications and has one way improved emissions, waste reduction, water reduction and
the Corporate Social Responsibility (CSR) of the company. recycle, Smart and sustainable communities etc.
F. Sustainability Evaluation
V. CONCLUSION AND FUTURE RESEARCH
Sustainability can be summarized to be a better process of
meeting both present and future needs of humanity with This study has discussed the significance of advance
minimal or no impact on the environment [12]. Meanwhile, technology in food manufacturing supply chain environment
considering different innovations and advanced technology towards achieving the needed sustainability and business
success. The discussion and analysis from the case study
that is being integrated into production and manufacturing,
pointed out various implications of strategic integration of
sustainability evaluation is needed to understand better how
advanced technology in food manufacturing supply chain
this could be well managed to support and promote the environment in terms of sustainable manufacturing and
achievement of the Sustainable Development Goals (SDGs). prosperity of the industry. The study also evaluated
Evaluation as defined by Cambridge dictionary is a process of sustainability within this company’s production using Key
determining values, quality or importance of something [33]. Performance Indicators (KPIs) around the Three Bottom Line
This in any form could be a tool of informed decision making (TBL), i.e. Social, economic and Environmental evaluands and
in terms of accountability, development and monitoring which the outcomes as highlighted in Table I. This study has
are basics to achieving prosperity in any organization. suggested that strategic integration of advanced technology in
2019 IEEE Technology & Engineering Management Conference (TEMSCON)
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