Product operations management in vertical farming: Building efficient, scalable grower operations

Vertical farming — the practice of growing crops in stacked layers within controlled indoor environments — represents one of the most promising innovations in modern agriculture.

By optimizing space, resources and technology, vertical farms aim to provide consistent, high-quality produce close to markets while reducing the environmental footprint of food production. However, like any enterprise, the success of a vertical farm depends not only on the quality of its crops but also on the efficiency of its operations.

What is product operations management?

I have conducted numerous interviews with industry stakeholders to identify ways to make vertical farms profitable (especially at the unit level), and some of the key terms that came up in our discussions were workflows, optimization and quality control.

This tells us that one of the hidden drivers of success is product operations management, or POM. Product operations management involves planning, coordinating and optimizing the processes that transform inputs into finished products, which has been widely implemented in manufacturing.

In a vertical farm, this means managing the entire journey from seed selection and germination to harvest, packaging and distribution. Simply put, POM is the discipline that ensures the farm runs smoothly, efficiently and profitably from seed to shelf.

Think of POM as the “operating system” of the farm — helping leaders to balance efficiency, quality and growth.

Key components of product operations management

1. Production planning and scheduling

Vertical farms operate on tight cycles, with crops maturing at specific intervals. Effective scheduling ensures that planting, harvesting and replanting are synchronized to maintain a steady supply of product.

2. Resource management

Inputs such as seeds, growing media, water, nutrients and energy must be carefully managed. POM emphasizes minimizing waste while ensuring availability. Energy, often the largest cost driver, requires careful monitoring and optimization of lighting, HVAC systems and climate control.

3. Workflow optimization

From seedings to harvest and packaging, each step of the workflow needs to be designed for efficiency and ergonomics. Clear standard operating procedures (SOPs) and automation technologies (e.g., conveyors, robotics, automated seeders) in conjunction with employee training programs are necessary to reduce errors and increase output.

4. Quality control and food safety

Consumers expect vertical farms to deliver pesticide-free, fresh and consistent produce. POM ensures quality through uniform growing conditions, rigorous monitoring and compliance with food safety certifications like HACCP (Hazard Analysis Critical Control Points), ISO 22000 and Good Manufacturing Practices (GMP). Real-time data collection on temperature, humidity, pH and nutrient levels supports early detection of issues that could compromise crop health or product quality.

5. Technology integration

Vertical farming relies heavily on data-driven decision-making. Sensors, IoT devices and AI-powered analytics can provide insights into crop performance and environmental conditions. POM systems can integrate these technologies into dashboards and reporting tools that guide daily operations. Predictive analytics can forecast yields and align them with sales commitments.

6. Supply chain and distribution

POM plays a role in coordinating harvest timing with distribution logistics to ensure freshness and reduce storage needs. Collaboration with distributors, retailers and direct-to-consumer channels ensures a steady market for harvested produce.

Strategic benefits of product operations management

Implementing robust product operations management offers several advantages.

• Consistency and reliability: POM reduces variability in production, ensuring that customers receive the same quality product week after week.
• Cost control: By optimizing energy use, labor and inputs, farms can reduce operating costs and improve margins.
• Scalability: A strong operational framework allows vertical farms to expand to new facilities or add crop varieties without sacrificing performance.
• Sustainability: Efficient resource use, minimized waste and monitoring align with environmental stewardship goals.
• Customer satisfaction: On-time delivery of fresh, high-quality produce builds trust and loyalty among buyers.

The bottom line

Product operations management is the backbone of successful vertical farming enterprises. It provides the structure and discipline needed to manage complex human, biological, technological and logistical processes.

By adapting principles from manufacturing to the unique needs of controlled environment agriculture, POM ensures that vertical farms can deliver on their promise of providing fresh, local and sustainable food.

I will explore the components of POM in more detail in future columns. Until then, keep growing.

Author’s note: Those interested in learning more about the discipline of POM can refer to the Production and Operations Management Society (POMS) website and Production and Operations Management Journal.