Introduction
Digitalization has become a transformative force that is reshaping industries across the world. Digital technologies involved in digitalization help to transform a business’ processes, operations, and models. This helps to create new opportunities, improve decision-making, enhance the customer experience, and drive innovation & growth.
With 230.6 million tons of milk production, India is the largest producer of milk in the world (NDDB, 2023). As the purchasing power of Indian consumers increases, per capita milk consumption in India increases even further, presenting an opportunity for the dairy industry to leverage digitalization for improved efficiency and productivity.
Need for Digitalization
Digitalization will have a profound impact on the milk production segment of the value chain. In developed countries, farmers maintain detailed records of their cattle, such as health, pedigree, reproduction, nutrition, milk yield, and quality, which are effectively utilized for making farm decisions. On the other hand, a chunk of dairy farming in India is still unorganized. Cattle records are often not well-kept, whether by farmers or the companies that collect and process milk, hindering decision-making. However, the level of digitization in the dairy sector is increasing year-on-year with the entry of companies like Stellapps into the dairy industry by providing end-to-end tech solutions in the dairy supply chain.
Digitalization in the Indian Dairy Industry
At the farmer level, the dairy farmers and their cattle are onboarded into the company’s digital ecosystem through mobile applications, where they are given unique identities. Some companies are going out of their way to employ field agents to help farmers who are technologically disabled. These field agents are tasked with keeping the records of farmers and cattle updated through mobile applications.
The digitalization process is adopted at the collection centers by some cooperative societies and companies by deploying IoT-based automatic milk collection units, which allow milk collection and data entry without much human intervention. This reduces pilferage activities. Here, the farmers are given the right price for the quality of milk they are pouring and access to a digital milk passbook. Farmer attendance and purchases are tracked. Further, the farmer can also keep track of their income and expenses.
At the chilling centers, keeping track of the quality and quantity of milk, power consumption, and maintaining the temperature of the chillers are time-consuming and resource-intensive tasks. To resolve these issues, companies have set up IoT sensors to get real-time data. To oversee the quality and quantity of milk carried in the tankers, the vehicle's movement is also recorded through GPS trackers and sensors before the milk reaches the plant.
Finally, at the processing plant, manufacturing-related data is meticulously stored for quality assurance purposes. This end-to-end digitization ensures seamless integration, transparency, and efficiency across the entire dairy supply chain, ultimately benefiting stakeholders and consumers alike.
Gaps in Digitalization
Despite the abundance of data collected at various points along the dairy supply chain, many companies fall short of harnessing their full potential. While some organizations utilize this data to enhance individual node operations, its true value lies in its seamless flow across the entire supply chain. By establishing a standardized system for data aggregation and analysis, stakeholders can unlock invaluable insights and make informed decisions that drive efficiency and quality throughout the process.
Currently, the data landscape in the dairy industry is fragmented and disjointed, posing challenges in extracting meaningful insights. To address this issue, there is a pressing need to stitch together different datasets from each node, creating a cohesive and transparent data ecosystem. This is where traceability emerges as a crucial solution, providing a framework for tracking data from farm to final product seamlessly.
Traceability in the Supply Chain
Traceability refers to the ability to track and trace the movement of products and their ingredients throughout the supply chain, from raw materials to finished goods, and even to the end consumer (Azad N, 2023).
Traceability emerges as the solution to address various concerns faced by different stakeholders in the dairy industry. For the end consumer, traceability ensures the maintenance of hygiene standards, transparent sourcing practices, and safeguarding against contamination risks. Business owners benefit from improved regulatory compliance and a more resilient and efficient supply chain, bolstering their operational integrity and brand reputation.
Moreover, traceability empowers farmers by enabling them to produce higher-quality milk and receive fair compensation for their efforts. By implementing robust traceability systems, Indian companies pave the way for a more transparent, accountable, and sustainable dairy ecosystem, thereby enhancing consumer trust, supporting farmer livelihoods, and driving industry-wide progress.
Traditionally, traceability has been achieved through manual or electronic record-keeping systems. This method of collecting data is not only time-consuming but also introduces inaccuracy and inefficiency in the supply chain. However, with the advent of digital technologies, dynamic traceability has emerged as a more advanced and sophisticated approach to static traceability, offering real-time visibility and insights into the entire supply chain.
Dynamic Traceability
Unlike traditional traceability, the dynamic traceability approach utilizes technologies such as blockchain, IoT sensors, GPS tracking, and cloud-based platforms to collect and transmit data instantly. For example, in the dairy industry, sensors installed in the chilling centers can monitor electricity consumption, temperature, volume, and quality metrics in real time during chilling.
Conclusion
Increasing digitalization in the dairy industry offers immense opportunities for enhancing dynamic traceability and improving the efficiency of the entire supply chain. By leveraging IoT sensors, data analytics, cloud-based platforms, and blockchain technology, stakeholders can achieve real-time monitoring, data-driven decision-making, and end-to-end traceability of dairy products. Embracing digitalization not only ensures food safety and quality but also enhances consumer trust and confidence. As the dairy industry continues to evolve, embracing digital innovations will be essential for staying competitive and meeting the evolving needs of consumers in a rapidly changing marketplace.