INSTITUTE OF MANAGEMENT, NIRMA UNIVERSITY

MBA-FT (2022-24)
Digital Transformation
Group Assignment 1
Industry: Food & Beverages
Use Case
Machine Learning, Predictive Analytics, and Blockchain for Demand Forecasting and
Efficient Supply Chain Management in the Food Industry

Submitted to:
Prof. Anil Menghrajani

Submitted by:
Section - E : Group 54

Sr. No Name Roll no.

1 Nandini Bhadauria 221526
2 Nandita Parikh 221527
3 Nikhil Kochrekar 221528
4 Nisarg Thakkar 221529
5 Nisargkumar Desai 221530
Industry: The Food and Beverages industry

As a group of students researching the food industry, we have discovered that the advent of
new technologies and digitalization has had a significant impact on the industry over the years.

The food industry has evolved over the years through the introduction of various technologies.
In the early 1900s, mass production of food was made possible through the use of machineries
such as canning and bottling machines. Fast food chains in the 1930s to 1950s standardized
food preparation using assembly-line techniques, while new technologies such as refrigerated
trucks and barcode scanners emerged in the 1960s to 1980s for better transportation and
tracking of food products. The rise of the internet and digitalization in the 1990s and 2000s led
to the transformation of food marketing and distribution, with online grocery shopping,
delivery services, and social media advertising becoming more popular.

More recently, the food industry has seen the introduction of new technologies like 3D printing,
AI, and Machine Learning have also been used to improve food safety and quality control.

Business Problem

Our findings indicate that inaccurate demand forecasting can have a significant impact on the
food industry. Accurate demand forecasting and inventory management are crucial for the
industry, particularly when managing perishable items with a limited shelf life. Our research
has shown that inaccurate demand forecasting can lead to overstocking or understocking, both
of which can result in lost revenue or increased waste. With perishable items, such as fruits,
vegetables, and meat, having a limited shelf life, it is crucial to accurately predict how much
product to produce, when to produce it, and how much to stock. Overstocking can lead to
spoilage and waste, while understocking can result in lost sales and dissatisfied customers.
Moreover, manual inventory management can be a complex and time-consuming task,
especially for large-scale operations. Manual inventory management is prone to error and can
be time-consuming, particularly for large-scale operations. This involves manually tracking
stock levels, updating spreadsheets, and managing orders.

Technology Solution

Machine learning and predictive analytics are powerful tools that are transforming the food
industry by enabling companies to analyze large volumes of data and generate accurate demand

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forecasts. By analyzing historical sales data, weather patterns, and other factors that impact
demand for food products, machine learning algorithms can quickly and accurately identify
patterns and trends to predict future demand.

This technology is particularly valuable to the food industry because accurate inventory
management is critical to ensuring that the right amount of product is available when customers
want it. By using machine learning to generate precise demand forecasts, companies can
optimize their production schedules and reduce waste.

In addition to machine learning and predictive analytics, blockchain technology is also being
used in the food industry to enhance supply chain transparency and traceability. By providing
a secure and transparent way to track the movement of food products from farm to table,
blockchain can help to reduce food fraud and improve food safety.

Technology Components used

The food industry is making use of machine learning algorithms, predictive analytics tools, and
historical data sources to tackle the requirement for precise forecasting of demand and
streamlined inventory management. Blockchain technology is also being used in the food
industry to improve supply chain management and ensure greater transparency and traceability.
With blockchain, food companies can create a digital ledger that records every step of the
supply chain process, from farm to table. This ledger can track key information about the food
product, such as its origin, production methods, and transportation details. By using blockchain,
food companies can improve the accuracy and speed of their supply chain processes, as well
as reduce the risk of fraud or contamination. Blockchain can also provide greater transparency
and trust for consumers, who can use the digital ledger to track the journey of their food product
and verify its authenticity.

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Improvement in Outcomes

By using machine learning and predictive analytics to optimize demand forecasting and
inventory management, the food industry can achieve significant improvements in outcomes,
such as:

• Improved Accuracy: Improved accuracy of demand forecasts, resulting in reduced

waste and optimized inventory levels.
• Increased Efficiency and productivity by automating the demand forecasting and
inventory management processes, reducing the need for manual intervention.
• Enhanced Customer Satisfaction by ensuring that products are available when and
where they are needed, improving overall supply chain management, and reducing the
risk of stockouts.
• Enhanced Transparency: Blockchain provides a transparent and tamper-proof system
for tracking the movement of food products through the supply chain, which increases
accountability and trust among stakeholders.
• Improved Traceability: With blockchain, every step of the supply chain can be traced,
allowing for better identification of issues such as foodborne illnesses and recalls. This
enables more efficient and effective responses to such incidents.
• Minimized Food Waste: It can facilitate better tracking and monitoring of inventory
levels, thereby reducing the amount of food that goes to waste.
• Improved Food Safety: By providing real-time information on the origin, processing,
and distribution of food products, blockchain technology can help ensure that food
products meet safety standards, reducing the risk of food contamination and illnesses.

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Popular Examples

Domino's Pizza

Domino's Pizza is a popular pizza chain that has been implementing machine learning
algorithms to analyze customer data and optimize its menu offerings and delivery routes. The
company has been using machine learning for several years now, and it has helped them
improve its customer experience and increase sales.

One of the ways that Domino's uses machine learning is by analyzing customer data to identify
patterns and trends in their ordering behavior. This helps them understand what customers are
looking for in terms of menu offerings and allows them to optimize their offerings accordingly.
Domino's also uses machine learning to optimize delivery routes, reducing delivery times and
improving the overall customer experience.

Domino's has also been using inventory management software to ensure that its stores always
have the necessary ingredients and supplies. This software helps them keep track of inventory
levels and order new supplies as needed, ensuring that they can meet customer demand and
minimize waste.

According to a case study published by Google Cloud, Domino's used machine learning to
optimize its delivery routes in Australia. They used data from their GPS tracking system to
optimize delivery routes in real-time, reducing delivery times by an average of 4 minutes. This
led to a 23% increase in customer satisfaction and a 6% increase in sales.

In another example, Domino's implemented a chatbot named "Dom" that uses machine learning
to personalize the ordering experience for customers. The chatbot analyzes customer data and
preferences to make personalized recommendations for menu items and promotions.

Overall, Domino's Pizza is a great example of a company that has successfully implemented
machine learning algorithms and inventory management software to improve its operations
and customer experience.

Coca-cola

In 2019, Coca-Cola used machine learning algorithms to analyze data from over 200 countries
and territories to forecast demand for its products. The company was able to accurately predict

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demand with an 85% success rate, which helped them optimize their production and reduce
waste.

By using predictive analytics to optimize their production and supply chain operations, Coca-
Cola was able to achieve cost savings of over $150 million in 2019.

Coca-Cola's focus on data analytics has helped them improve their sustainability performance.
In 2019, the company reduced its water usage by 27% compared to its 2004 baseline, which
was partly achieved through data-driven initiatives such as machine learning and predictive
analytics.

Through the use of predictive analytics, Coca-Cola has been able to optimize their marketing
campaigns and improve their ROI. For example, in 2018, the company used machine learning
algorithms to analyze consumer data and target their marketing efforts more effectively. This
resulted in a 20% increase in ROI for their marketing campaigns.

Nestle

Nestle's partnership with Carrefour to

launch a blockchain-based platform has led
to significant improvements in its inventory
management and supply chain transparency.
The platform provides consumers with real-
time information on the origin of the
product, farming and production methods
used, and the supply chain journey. This has
enabled Nestle to enhance the transparency of its supply chain and reduce waste, while
improving its inventory management.

According to Nestle's official statement, the company was able to achieve a 15% reduction in
administrative costs related to supply chain management, as well as a 20% reduction in lead
times for certain products. Additionally, the platform has allowed Nestle to improve its
inventory management, reducing excess inventory levels by up to 10%.

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 References
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provenance system for food industry 4.0 using advanced deep learning. Sensors,
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• Fortuna, F., & Risso, M. (2019). Blockchain technology in the food industry.
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industry digitalization: from challenges and trends to opportunities and solutions.
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• Beyond Meat. (2022). Our mission. Retrieved from https://www.beyondmeat.com/our-
mission/
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• Industry: Food industry. (n.d.)." In Wikipedia. Retrieved February 27, 2023, from
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• Coca-Cola Annual Report 2018, 2019
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