<img src="https://secure.leadforensics.com/133892.png" alt="" style="display:none;">

With the restrictions created by COVID-19 during the last year, many food businesses have had to survive by finding new routes to market or adjusting their offers, resulting in new income streams. Although we’re now entering a period where lockdown is easing and some suppliers may revert back to previous business models, many of the changed routes to market are here to stay.

For those suppliers who are planning to continue with alternative supply channels, there’s now a need to focus on how said channels can be optimised and provide better customer experience, particularly using mobile devices. Whatever the future, the operating processes for food businesses will need to continue to be adaptable and agile.

But following a challenging year, investment is a concern together with the tangible benefits that will result, so any spend needs to be used wisely.

How can e-commerce help?

E-commerce for food sector

The impact of COVID-19 has generated some permanent changes to the way we buy food - alongside all the associated challenges of how to get food from the field to the door as efficiently as possible. The increasing use of e-commerce solutions helps address those challenges not just by making the channel more responsive, but also ensuring that the whole buying experience is easy, intuitive and aligned with any brand positioning.

Let’s discuss these key benefits of e-commerce in food in more depth…

Quality and integrity

The food industry is typically fast moving, with a focus on delivering quality and meeting continually changing regulations. As a result, suppliers within the sector must adhere to the necessary operational practices and legislative needs required to deliver safety and quality.

For example, you must avoid delivering products that have passed their expiry date or contain any contaminants.

The right e-commerce solution integrated with a system (such as ERP) allows all relevant information to be easily found via the front-end of a webstore. This ensures that all potential consumers can clearly see key information such as ingredients, inventory levels and expiry/delivery dates.

Now they can make informed decisions without any guesswork, avoiding potential risks before purchase or disappointed customers on delivery.

Efficiency and waste reduction

There’s a huge focus on reducing waste within the food industry, with an estimated 7.2 million tonnes of food and drink being thrown away every year in the UK. Some keys to this are having up-to-date and accurate information throughout the entire food chain and being able to measure this.

If you can link food stock levels and expiry dates to pricing, you can expose that quickly to customers to try and shift food produce for consumption before it passes its use date and is thrown away.

Simply having that information on a website is no good, but an e-commerce platform that can quickly and efficiently surface that information at customer order point (including pricing incentives to reduce the risk of disposal) helps:

  • The supplier realise some revenue
  • The customer getting additional value
  • Reduce overall food waste

In addition, the growth in co and bi-products from potential food waste has grown. With an e-commerce solution, you can quickly potentially create additional revenue streams in those areas.

Adaptability

The future of food

Traditional approaches to creating additional revenue streams can be quite cumbersome. For ease, businesses tend to revert to a single, repeatable process and experience for simplicity and time.

This approach doesn’t necessarily enhance the buying journey for a variety of different customers, and potentially can lead to lost sales. How can e-commerce platforms help? You can create different user channels and experiences online so experiences can be tailored quickly and easily depending on the customer type.

This means it’s easier for customers to purchase and leads to a greater likelihood of success than just having one single approach. To maximise these benefits, integrate with an ERP solution. Although the front end may vary, the back-end and delivery controls provided via the ERP system can be standard to enable the right efficiency gains.

Columbus is currently engaged with a number of food suppliers and has worked with the food industry for many years very much in the ERP space. However, with the capability to deliver effective e-commerce solutions, the opportunities are there to try and exploit some of the new revenue streams.

Some of the specific areas currently being addressed in food through e-commerce by Columbus include:

  • Meeting the trend in food manufacturing to extend B2B and B2C capabilities and opportunities
  • The ability to sell effectively to a variety of customer channels
  • Provision of a common set of web pages rather than disparate systems
  • Standardised templates to enable a common approach to order intake
  • The ability to sell to high end hospitality as well as home delivery
  • Mobile first

E-commerce solutions can provide benefits to many industry sectors. However, the food industry with its niche challenges (e.g. around quality and regulations) and changes accelerated over the last year, is well suited to use e-commerce to help drive additional revenue in potentially new streams.

The future of the food industry may not be 100% clear. But one thing is for certain - it will continue to change and evolve. So, successful players in the market will need to adapt and adapt quickly. E-commerce provides a tool to address that adaptability and the means to remain successful.

Ensure your food business adopts the right technology at the right time

An e-commerce solution isn’t the only technology food businesses like yourself can take advantage of. There’s AI, automation, self-checkouts, 3D printing…successfully implementing modern technology can help your business remain agile, despite the circumstances.

In our guide to technology adoption, we outline the technology you should know about and some tips on ensuring successful adoption throughout the business. Download it below.

Ecommerce technology adoption tips

Topics

Discuss this post

Recommended posts

Quality is about meeting/exceeding your customer expectations every time they buy your product or service. But rising food prices due to global crisis such as the 2020/21 pandemic has placed added pressure on margins, meaning businesses are limited on how much they can spend on improving quality control. That’s why you need to prioritise effectively, so you can make the biggest impact with your expenditure on high quality.
Pressures from production, demand, regulations and more informed consumers are forcing food companies to modernise their business processes.
An ERP system is a powerful tool that combines sales, finance, resources, people and processes into one central location. It connects your departments in real-time, allowing you to make more informed business decisions and increases efficiency at all levels.
Today’s rapidly evolving digital landscape is constantly changing the behaviour and expectations of consumers. The digital era has also created a seemingly endless number of channels you can market your products to potential customers.  But without a clear plan of who you’re targeting, what you’re offering and what your business goals are, you’ll fall by the wayside. So, to succeed in the modern world, you need to know how to build a digital strategy to ensure your efforts have maximum impact.  Let’s dig deeper…  Understand what your customers want  There’s no point driving traffic to your website if all you’re going to get is a pile of spam in your inbox. Gathering customer data isn’t new. But knowing where to start when it comes to pulling this data from your CRM (customer relationship management) system, or knowing what to capture in the first place can be a daunting task.  Here are our top targeting options to use for a strategy:  Attributes – these include age, location, gender, technology preferences, etc  Value – by understanding your customers’ lifetime value, you can segment them into areas like returning buyers/one-time buyers and target them with different methods  Behaviour – e.g. what’s their preferred buying method? There are several tools that allow you access to this information such as Google Tag Manager  Channels – Find out what parts of the funnel are touching your customers. Don’t just look at the last click attribution model – analyse every step to determine which channels to focus on for each segment  Once you’ve gained a better understanding of who you’re talking to, you can start creating buyer personas which are profiles that represent your ideal customers. This allows you to tailor your marketing efforts to engage with your target audience and meet the needs of your customers. 
Today’s consumer wants quick satisfaction and constant connectedness, which is making it increasingly difficult to hold their attention. So, like you, we’re always looking at better ways to get our value proposition message across to our customers. This blog contains tips we’re currently implementing into our business and we hope they can help inspire you too.
right-arrow share search phone phone-filled menu filter envelope envelope-filled close checkmark caret-down arrow-up arrow-right arrow-left arrow-down