Empowering Growth Through Operational Resilience in Food & Beverage

The European Food & Beverage (F&B) industry stands at a pivotal moment. The gap between companies that merely react to disruption and those that proactively build resilience is widening – creating a competitive divide that will define market leaders for the next decade. Confronted by a rapidly evolving regulatory landscape, supply chain vulnerabilities, digital transformation pressures, and shifting consumer expectations, companies must rethink how they operate. Success in this environment demands more than isolated improvements – it requires a holistic, resilient approach to operations.

This dss⁺ six-part series, Empowering Growth Through Operational Resilience, offers a strategic blueprint for navigating this complexity and unlocking sustainable growth.

Regulatory compliance as a strategic lever

At the heart of operational resilience lies the ability to navigate regulatory complexity. With the introduction of the Corporate Sustainability Reporting Directive (CSRD) in Europe, F&B companies must now disclose environmental, social, and governance (ESG) impacts, including those embedded deep within their supply chains. This shift transforms compliance from a reactive obligation into a strategic opportunity.

Companies that proactively monitor regulatory trends—such as emerging rules on microplastics, food additives, and traceability—can build competitive advantage. Investing in compliance technologies like automated labelling systems and data analytics not only reduces administrative burden but also improves accuracy and responsiveness. Moreover, aligning compliance efforts with sustainability and innovation goals helps protect brand reputation and opens doors to new markets. Read more

Resilience begins in the supply chain

The COVID-19 pandemic, geopolitical tensions, and climate-related disruptions have exposed the fragility of global food systems. dss⁺ defines supply chain resilience as the ability to withstand, adapt, and recover from disruptions. Achieving this requires visibility, flexibility, and collaboration.

Yet, 45% of supply chain leaders have only first-tier visibility or none at all, with just 7% achieving multi-tier transparency. Achieving supply chain resilience requires building on foundational pillars – risk mitigation and cost-efficient production – while leveraging supporting capabilities like agility, visibility, and collaboration. Technologies like blockchain and IoT can dramatically improve traceability and risk detection. Diversifying suppliers and investing in backup facilities ensures continuity when disruptions strike. Lean and Six Sigma principles, combined with demand forecasting tools, help optimise inventory and reduce waste.
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Digital transformation: the engine of agility

Digital transformation is no longer optional – it’s the engine that powers agility, efficiency, and innovation. The digital transformation market has grown from $92bn in 2014 to $469.8bn in 2020, with projections reaching $1 trillion by 2025 – reflecting the urgency and scale of this shift. Technologies like AI, machine learning, and predictive analytics enable companies to anticipate market shifts, optimise operations, and enhance sustainability.

For example, Walmart uses AI to forecast demand, reducing stockouts and excess inventory. Ocado’s smart logistics platform improves distribution efficiency, while blockchain combats food fraud and enhances transparency. Neuroscience tools and social media analytics help tailor products to ethical and health-conscious consumers.

Digital tools also support ESG compliance by tracking carbon footprints and verifying ethical sourcing. However, success depends on data quality, system integration, and employee readiness. In F&B specifically, the high number of SKUs compared to other sectors creates significant data volume and quality challenges – making robust data governance and validation processes essential. Companies must address legacy system challenges and any cultural resistance early, aligning technology initiatives with broader business goals.
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Operational efficiency through lean, agile, and digital synergy

Operational excellence in today’s F&B sector requires a fusion of Lean, Agile, and Six Sigma (LASSi) methodologies with digital tools. The key evolution in operational efficiency is the shift from reactive to proactive performance – anticipating rather than responding.

Leading examples include:

• Coca-Cola HBC: Reduced plants by 30% while increasing line efficiency;
• Nestlé: Saved $1.7bn annually through its Continuous Excellence programme;
• Unilever: Uses AI and 3D printing to optimise packaging and product consistency;
• Kraft Heinz: Shrunk innovation timelines from three years to just six months using Agile@Scale.

These companies demonstrate that efficiency is no longer about trimming fat—it’s about reimagining how work is done, physically and digitally. To replicate this success, organisations must invest in leadership development, cross-functional collaboration, and upskilling.
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People power: the heart of performance

Technology and process improvements are only as effective as the people who use them. In the F&B sector, where frontline workers play a critical role in quality, safety, and customer experience, engaged employees are a strategic asset – they reduce injury rates, spot quality issues early, and drive continuous improvement.

Gen Z and Millennials demand purpose and development opportunities, with 79% of Gen Z and 75% of Millennials willing to leave jobs lacking upskilling. Engaged employees are more attentive, proactive, and committed to quality. They spot issues early, suggest improvements, and maintain high standards.

Companies like Starbucks and PepsiCo have invested in education benefits and career mobility, reducing turnover and building internal talent pipelines. The dss⁺ Bradley Curve™, a model mapping organisation’s safety culture evolution, shows that engaged teams dramatically improve safety outcomes, reducing injury rates and enhancing operational performance.

Leadership is key. Open communication, recognition, and shared accountability create a culture of trust and innovation. When employees feel valued and involved, they become partners in executing strategy – not just passive workers.
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Continuous improvement: the culture that sustains progress

In high-pressure, low-margin environments like F&B, continuous improvement (CI) is not a project – it’s a mindset. It replaces firefighting with prevention and embeds a culture of learning and innovation.

Best practices include:

• Gemba walks and shift huddles to identify and act on issues.
• Small, frequent ideas: Toyota, for example, implements 90% of its 1M+ annual suggestions.
• Cross-functional teams: Performance Improvement Team (PIT) sprints can, for example, reduce packaging changeover time by 20%.
• Psychological safety: Encouraging openness and learning from mistakes.
• Metrics and governance: Track CI outcomes, cascade goals, and recognise contributions.

Companies like Nestlé and Toyota show that CI, when embedded into strategy and governance, drives longterm resilience. Leaders must allocate time, resources, and recognition to sustain momentum.
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A unified strategy for resilient growth

The dss⁺ series presents a unified strategy for F&B companies to thrive in a volatile, complex environment. Each pillar – regulatory foresight, supply chain resilience, digital transformation, operational efficiency, employee engagement, and continuous improvement—reinforces the others. Together, they form a resilient, agile, and future-ready enterprise.

Operational resilience is not a single initiative – it’s a mindset, a culture, and a continuous journey. The companies that succeed will be those that embrace change, empower their people, and invest in innovation. In doing so, they will not only survive but lead the transformation of the F&B sector.