By Isaac Fletcher, contributing writer, Food Online
Faced with the hurdles of an evolving industry and shifting consumer preferences, food and beverage producers can implement best practices and new technology to improve efficiency and increase profitability
As organizations work toward minimizing production and supply costs, increase delivery efficiency, and adhere to regulatory policies, food and beverage manufacturers face many challenges just to stay competitive. To enhance productivity and increase operational efficiency, producers can focus on the following areas:
Boost Operational Productivity
Through inventory control — when working with fresh materials and raw ingredients, producers run the risk of spoilage, which presents various manufacturing, planning, and inventory management complications. Successful monitoring and management of inventory will cut waste and improve efficiency.
Through supply chain cooperation — in order to increase cohesion throughout the various parts of a supply chain, producers should ensure the rapid and straightforward transfer of data between partners. This is aided by modern technology, which allows for online collaboration with smaller business partners.
Provide Access To Company Information
With real-time insights about manufacturing procedures and costs, producers provide an understanding of production activities, capacity loadings, shop floor activity, and production expenses. Additionally, by tracking products throughout the entire production process, producers can implement efficient recall methods with forward and backward traceability.
Integrate New Technology Into Current Platforms
Manufacturing methods have been improved through new technology that allows equipment on the production floor to be programmed for the specific needs of the producer. Rather than using compartmentalized machinery for various aspects of production, producers can save time by integrating all systems with supply chain information, material weights, etc…
Improve Customer Support And Traceability
Producers can bolster customer support by being able to trace raw products from the field to the distribution warehouse and vice-versa. Implementing a high level of traceability ensures that all product inputs can be carefully monitored, lowering the risk of safety and regulatory issues.
Increase Competitive Advantage
By bettering efficiencies in product development — engineering and manufacturing new products can create various challenges and complications if producers do not make the right considerations. By ensuring that timeframes are met and products are produced to meet customer specifications, management can make product development efficient and profitable.
Through reduced production costs — food and beverage makers are accustomed to narrow profit margins. By reducing production costs by even one one-hundredth of a penny per unit can yield significant increases in profitability.
By responding to industry circumstances — in order to gain or maintain a competitive advantage, producers should modify product creation to meet the evolving needs of the market.
Lower Compliance And Quality Control Costs
The primary factor that sets a producer apart from the competition is quality. However, effectively monitoring quality can be expensive and challenging, meaning any investment in quality-control operations needs to be done mindfully to ensure resources and time are not wasted