There’s a critical disconnect between the F&B industry’s progressive goals and outdated methods of supply chain management. Learn how to overcome it.
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There’s a divide threatening to stall the growth the food and beverage (F&B) industry has experienced over the past few years—what some experts have named the modernization gap. For suppliers, getting caught in this chasm carries greater risks. How do you meet the rising expectations of buyers? How much of an investment are you able to make? How quickly can you overhaul processes that no longer serve you and your supply chain partners? In this 2025 report on modern supplier engagement, we’ll help you answer these questions and more.
The challenges of legacy supply chain processes
Recently, we conducted a survey of our vast network of suppliers, with key themes emerging again and again in the responses. Although more than half of respondents are still using manual systems that rely on spreadsheets, actual paperwork, and more, they’re struggling to make the jump to digitization. Many suppliers reported problems directly caused by outdated methods, including bottlenecks, slower response times, and costly errors.
But lagging technology does more than bog down your supply chain. It can also erode trust between buyers and suppliers, jeopardizing long-term relationships and future opportunities. Think about it realistically—if delays on your end cause the buyer to miss important audit deadlines or, worse, recall specific products, then your brand reputation will suffer. Unfortunately, scenarios like this happen far more often than they should, and they’re holding the entire food and beverage industry back.
%
of suppliers reported frequent issues
%
of supplier cited time-consuming tasks
%
of suppliers experienced data entry errors
The shift toward modernization benefits everyone
Fortunately, these issues all have achievable solutions. If nothing else, the survey results illuminated a clear path forward for the F&B industry. Adopting digital platforms that centralize documentation and automate routing tasks can mitigate most of these pain points, while freeing up time for strategic priorities. Meet increasing expectations head on by investing in systems that improve data accuracy and transparency.
Start overcoming the barriers to digitization
Modern supplier engagement isn’t a solo journey. It requires a shared vision, strong partners, and the right resources—one of which you can download today. Get your copy of this 2025 report to discover:
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More data and insights on how your F&B peers are bracing for uncertainty in the coming months
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Compliance and sustainability initiatives shaping the global supply chain
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A step-by-step guide to setting up for success as a supplier
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Case studies from other companies who have effectively bridged the modernization gap
A SNEAK PREVIEW: CHAPTER 1
Barriers to Supplier Modernization
The F&B industry is at a crossroads, where innovation and regulation collide with the realities of outdated systems and strained resources. Suppliers stand in the thick of this transformation, caught between rising consumer expectations and the tightening grip of global compliance standards. Modernization promises a way forward, but it’s not without its roadblocks. From navigating costly upgrades to untangling inefficient workflows, these challenges aren’t just inconvenient—they’re holding back the entire supply chain. Understanding these obstacles is more than a necessary step; it’s the key to unlocking a smarter, stronger path ahead.
The Regulatory Wave: A Growing Tide of Complexity
The good news is that closing The Modernization Gap is within reach. Suppliers don’t need to adopt a “rip-and-replace” approach to technology; incremental steps can make a significant impact. Start by identifying the most time-consuming and error-prone processes in your operation and explore tools that can streamline those tasks. Engage with buyers to understand their expectations and find opportunities for collaboration. And most importantly, recognize that modernization is not just an operational upgrade—it’s a competitive advantage.
As for buyers, the message is equally clear: Supporting your suppliers’ modernization efforts isn’t just good business; it’s essential for achieving your own goals. Whether through shared resources, training, or simply better communication, fostering a culture of mutual support can help bridge the gap and create a supply chain that’s agile, resilient, and ready for the future.
The 2025 Report: Modern Supplier Engagement is your guide to navigating this journey together. With practical strategies, real-world examples, and actionable insights, it offers a roadmap for suppliers, manufacturers, and buyers to thrive in a rapidly changing industry. Because when we close The Modernization Gap, we don’t just improve individual businesses—we elevate the entire F&B ecosystem.
The Consumer Factor: Heightened Expectations
Consumer preferences are another driving force behind the push for modernization. Today’s consumers demand more than just quality products—they expect sustainability, transparency, and alignment with their values. Social media amplifies these demands, turning minor missteps into major reputational risks.
According to TraceGains’ survey, 58% of suppliers identify faster responsiveness to consumer preferences as a key influence driving the need for modernization. In the UK and EU, much of this pressure flows through retailers, whose stringent requirements often reflect shifting consumer demands. Whether it’s responding to trends like plant-based ingredients or meeting demands for eco-friendly packaging, suppliers must pivot quickly to remain competitive. This requires systems that can adapt to changing specifications and ensure seamless communication with both buyers and retailers.
Yet, many suppliers remain hampered by legacy processes, struggling to meet these expectations without overextending their resources. The result is a cycle of inefficiency that affects not only suppliers but also the brands that rely on them.
The Consumer Factor: Heightened Expectations
While the need for modernization is clear, the path forward is anything but easy. TraceGains’survey reveals three primary barriers preventing suppliers from adopting new systems:
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