Competitiveness of food industry SMEs: The recipe for success lies in data management and AI

In a world increasingly driven by AI, it is crucial for SMEs in the food industry to use technology smartly to remain competitive. But how can smaller companies stand out and remain successful in a market increasingly dominated by AI? In this article, you will discover how advanced process data analytics, combined with other innovative tools and technologies, can be the key to continued success.

Food, beverage and ingredient producers, like any other manufacturers, face the same challenge of ​ streamlining quality, increasing productivity, and gaining visibility to make data-driven decisions. However due to the specific nature of the food industry - such as ingredient variability, smaller production volumes and strict regulations - make these challenges even more complex and demanding.

The battle with data

One of the key challenges for food companies in implementing effective traceability and transparency systems is managing the extreme amounts of data generated by their supply chains. From sensor data on process KPIs to quality control records, the data flow is continuous and will only keep growing. 

The trend towards smaller, customized production batches further increases this data burden. Each batch requires specific parameters, tracking, and documentation, adding to the data burden, and intensifying the pressure on existing systems and resources. Moreover, food companies have to comply with stringent requirements for traceability, food safety, and quality. This requires immediate access to accurate process data, especially during audits or recalls. 

In addition, more than in other industries, clients and end consumers are increasingly demanding sustainable products. This means companies need to track and report a wide range of sustainability indicators. Managing and integrating this data presents a significant challenge, especially for smaller food manufacturers.

How food industry SMEs can stand their ground

Large food corps are heavily investing in digital technology and AI.

To keep up with larger competitors and achieve true digital transformation without overwhelming costs, SMEs in the food industry need to strategically leverage modern, flexible technologies. 

Here’s why, and three key ways to do so:

1. Leverage the power of open technologies to increase data visibility

Digital transformation starts with collecting data in real-time from different systems and machines. However, simply gathering data is not enough. The real challenge lies in processing, contextualising, and making this data accessible across the organisation. 

A crucial component of any manufacturer’s digitisation journey is the adoption of a modern data management solution, particularly a data historian.

Traditional proprietary historians are often costly and difficult to scale. In contrast, a historian built upon open technologies offers a more flexible, scalable and cost-effective solution. 

By using open-source technologies for data storage and visualisation, you can avoid the limitations of pay-per-use pricing models, and make critical data accessible to everyone in the organisation, from machine operators monitoring real-time KPIs to process engineers troubleshooting production issues. ​ 

This data accessibility not only ensures operational efficiency, but also fosters a culture of data-driven decision-making, which is the essence of true digital transformation.

2. Facilitate advanced business analytics through real-time integration with BI tools

Now that your data is consolidated and accessible, it is time to get ​ the most of it by integrating it with your Business Intelligence (BI) tools such as PowerBI or Tableau.

This enables you to answer business questions such as:

Also, this step opens up an array of opportunities for even deeper analysis:

3. Feed your structured process data to AI tools to grasp the same insights as the big players

To remain competitive, SMEs in the food industry must prepare for an increasingly data-driven future. The effectiveness of AI in enhancing production and operational efficiency depends on the foundation of structured, accessible data. 

Without a robust data infrastructure, AI tools cannot deliver the insights needed to optimise processes, predict trends, or automate decision-making.

As our CEO Jeroen pointed out in a previous blog article, future success will not be defined by production capabilities alone but by how effectively companies manage digital transformation. A solid data foundation is crucial—it allows SMEs to integrate AI seamlessly, driving huge potential improvements in areas like predictive maintenance, energy efficiency, and process optimisation. 

By focusing on building this strong data infrastructure today, SMEs can level the playing field with larger competitors, ensuring they remain agile and innovative in an unpredictable market.

^{About Jeroen Coussement}

^{Founder & CEO}

^{Jeroen founded Factry in 2016, bringing together his experience as a software consultant at some of the biggest names in the process manufacturing industry. In a time when innovative process tracking solutions came to their maturity, he decided to take the plunge. Eventually, a blog about his insights would kick off the business that would become Factry. Still at the helm of Factry today, he continues his mission to introduce data-driven operational improvement, both in the boardroom and on the production floor. He holds a master’s degree in bioscience engineering (University of Ghent).}

^{https://linkedin.com/in/coussej} 

^{About Factry}

^{​Factry provides process industry companies with open software for monitoring, analyzing and optimizing their operations. Our solutions make actionable data insights accessible to every role, from operator to CFO. With a strong focus on usability, Factry brings users closer to their process data so they can learn from it, make smarter decisions, avoid downtime and continuously improve the quality of products and processes. With Factry, manufacturers join forces with a team dedicated to the future of their plant, fostering a culture of continuous innovation - critical to gaining a competitive advantage in Industry 4.0.}

Jesse Huybrechts

Copywriter, Evoke

• jesse@evokepr.be
• +32 476 54 04 88

• www.evokepr.be