Digitalization in the food industry: growing despite labor shortages

A shrinking workforce

Digitalization and automation are no longer luxuries but essential strategies for survival and growth. “The question is not whether we can survive with fewer hands, but how we can grow with fewer hands,” says Thijmen Peter de With, expert in the food industry and chairman of the Bakery and Confectionery Association (VBZ). “In restaurants, the tables are all set for guests, but due to understaffing in the kitchen and service, it’s impossible to serve all those tables.” This painful parallel resonates in the food industry, where capacity utilization is directly linked to the lack of skilled personnel.

Where has the skilled labor gone? On the one hand, an aging workforce means that a large number of employees are retiring. On the other hand, hands-on jobs are becoming increasingly unpopular. Younger generations lack the required knowledge and skills, and the outflow of workers far exceeds the inflow. By investing in automation, producers can reduce their dependence on human labor. De With emphasizes, “This, however, does not mean we can operate entirely without people. It’s an argument for freeing up valuable time that can be spent on tasks requiring more creativity, expertise, or human insight.”

Achieving growth despite labor shortages

The benefits of digitalization and automation are undeniable. Better control over production processes and ensuring consistent quality are the most immediate advantages for the food industry. Digitalization enables companies to do more with less. By standardizing systems and automating processes, it’s possible to drastically increase efficiency. “Automation not only helps us work faster, but also smarter,” says Maarten Cordenier, Partner & Industry Lead Food at delaware. According to De With, consistency in production processes is crucial: “It ensures a stable production output, regardless of fluctuations in staffing levels.”

Minimizing downtime

Flexibility in automation systems is essential and must be interpreted widely. Machines must have the ability to perform various tasks, but how does digitalization help minimize downtime and optimize production lines? The answer lies in advanced planning tools. “With the right digital tools, it’s possible to adjust the production process almost in real-time. By adhering to optimal production sequences, downtime can be minimized. Additionally, AI helps optimize processes, and we use Power BI to collect data, allowing our clients to maintain a competitive edge—even during peak periods and with labor shortages,” says Cordenier .

As a bonus, improving product quality standards becomes much easier. Automated systems guarantee consistent product quality, which is vital for meeting strict food safety standards and the demands of consumers. Cordenier adds, “Digitalization enables you to trace and monitor every product, instilling confidence in every batch.”

Future-proof production

The need for support and reassurance is growing. By combining deep industry expertise with advanced IT solutions, companies can keep a close eye on operations without compromising their core activities. “With customized dashboards, business leaders can monitor operations to the second. This allows them to respond more quickly to changing market conditions,” explains Cordenier. This not only increases transparency in production processes but also improves decision-making—an invaluable asset in today’s market.

The ability to adapt quickly is a game-changer in the fast-paced food industry. The sector needs solutions to address challenges such as labor costs, quality standards, and efficiency. At the same time, technological adoption provides a strategic advantage, which is something no one can ignore. “By digitalizing processes, companies not only gain an edge in tackling today’s challenges but also equip themselves to anticipate the growth opportunities of tomorrow,” emphasizes De With. Food companies that prioritize digitalization position themselves for a future where they can deliver high-quality products regardless of market conditions.

At delaware, we serve as an IT partner and Trusted Advisor for the food industry, collaborating with many food companies. We’re here to help you assess your current situation and identify opportunities for optimization.