Tackling Inflation in the Food and Beverage Industry with AI

The Food and Beverage industry is one of the most important industries in the world and is constantly facing the challenge of inflation. Inflation is an increase in the overall prices of goods and services, which can have a significant impact on the profitability of businesses.

Many believed that last year was one of the hardest for the F&B sector. However, current survey results suggest that 2023 might be just as difficult.

Of those surveyed, 52% reported an increase in cost per product in 2021, and that number has skyrocketed to 81% this year.

Another problem is that rising costs are being passed on to customers making it harder to keep up with competitors.

In order to stay competitive and remain profitable, companies in the Food and Beverage industry need to find innovative ways to combat inflation. Artificial intelligence (AI) is one such technology that can help businesses to manage inflation.

3 ways to use AI to fight inflation in the Food and Beverage industry in 2023:

1. Improve customer service with automation.
2. Analyse customers’ data.
3. Predict market changes.

Improve customer service with automation.

Tackling Inflation in the Food and Beverage Industry with AI in 2023.

In the current economic situation with rising inflation in the Food and Beverage sector, keeping your customers is essential. Especially when improving customer retention by 5% can increase profits from 25-90%.

However, with the unpredictable nature of processes, there is friction with customers over increased prices, delivery delays and lack of communication.

So, here is the first tip to cope with inflation in the F&B industry – automate processes to improve customer service.

✅ Have all your orders automatically processed onto the platform with no need for manual keying, as AI-powered systems can handle large amounts of data and process it quickly and accurately.

✅ Analyse customer feedback and identify areas for improvement, allowing companies to make changes that can help improve customer satisfaction.

✅ Automate the tracking and management of inventory, allowing businesses to reduce costs and improve customer service.

Analyse customers’ data.

Tackling Inflation in the Food and Beverage Industry with AI in 2023.

AI can provide Food and Beverage companies with valuable insights into their customer base. AI-based tools can be used to analyse customer data to identify trends, preferences, and other insights that can be used to inform marketing, product development, and pricing strategies.

Additionally, AI-driven customer service technologies can be used to provide personalised customer experiences, which can lead to increased customer loyalty and satisfaction.

However, there is one issue. It means you must store customers’ data in-cloud which might not be safe, and many customers might be concerned about the security of their details. Now, you can also tackle it with the same platform as many software providers know the latest trend with various cyberattacks.

Especially when statistics show that 1 in 10 customers experienced a cyberattack within the past 3 years, and have taken steps to counter additional attacks, including installing specialised software (51%), adding enhanced cybersecurity training (46%) and keeping their production and IT networks separate (38%).

Therefore, the next step to be more stable in the current situation is to check if your software provider is taking steps to upgrade its security system to provide the safest experience for your customers and employees.

Predict market changes.

Tackling Inflation in the Food and Beverage Industry with AI in 2023.

Prices increased in an unprecedented manner last year and will continue to rise in 2023. We can see various items are affected drastically in the past few months. For example, low-fat milk grew by 42.1% and flour and other cereals by 29.6%.

So, the last tip to cope with inflation in the F&B industry in 2023 is by using Predictive Analytics (AI tool) in Food and Beverage industry. Here is how:

? Forecast future inflation rates to adjust pricing strategies and optimise production processes.

? AI can also be used to analyse historical data to identify patterns and trends that can be used to predict inflation. Additionally, AI can be used to monitor market conditions and identify potential opportunities or threats, allowing companies to adjust their strategies accordingly.

? Finally, AI can be used to develop predictive models to help businesses anticipate future trends and plan for potential market shifts. By leveraging AI-powered predictive models, businesses can develop strategies that will help them remain competitive and profitable in an ever-changing market.

Conclusion.

To cope with rising inflation in the Food and Beverage industry in 2023, updating outdated processes — be it Customer Service or Data Collection — is essential.

This is exactly where AI can help you with it.

It is a powerful tool for businesses in the F&B sector to help them manage and combat inflation. By leveraging AI-powered technologies, companies can gain valuable insights into their operations and develop strategies that will help them remain competitive and profitable.

And although it sounds like a complicated task, the current software market suggests many solutions for all your needs.