Food & Beverage
Food and beverage companies operate today in an environment very different to that of a few years ago. Some of the old paradigms, such as producing inventory to forecast, long production runs, and limited number of product categories, are no longer viable. The changing demands and fashions of the consumer market mean that food and beverage processors cannot plan on the basis of a long product life, and innovation has become a critical factor for survival.
Critical issues facing this industry include: increased levels of regulation in the form of quality, documentation and traceability; demands for variety and innovation; low profit margins; and shelf life management. Unique issues include: consistent quality of raw materials cannot be guaranteed necessitating dynamic recipes, together with variable processes; and forecasting in the final stages of production centre around packaging sizes.
Common characteristics of the food and beverage industry
Food & beverage manufacturers share many common characteristics:
- Process manufacturing.
- Lean manufacturing.
- Low cost manufacturing.
- Complex manufacturing.
- Make-to-stock.
- Make-to-order.
- Package-to-order.
- Product change control.
- Flexible pricing.
- Product promotions.
- Extensive customer relationship management.
- Collaboration with trading partners.
- Product and raw material traceability.
- Specialisation.
- Recipes and formulas.
- Product shelf life.
- High stock turnover.
- Diverse product ranges.
- Multiple manufacturing routes.
- Multiple units of measure and catch weights.
- By-products and co-products.
- Material yield.
- Safety compliance.
- Quality management.
- Recall management.
- Forecasting.
- Fast time-to-market requirements.
- Distribution requirements planning.
- Diverse markets.
Food and Beverage industry challenges
The challenges the food and beverage industry faces are to:
- Reduce forecast error.
- Comply with food safety regulations.
- Service complex markets.
- Innovate - develop new products.
- Manage customer relationships.
- Manage variable customer requirements.
- Manage product promotions and complex pricing.
- Accommodate and manage dynamic production plans.
- Manage capacity.
- Provide quality and low prices.
- Optimise margins in spite of highly variable input costs.
- Ensure quality and traceability of raw materials and manufactured products.
- Manage different units of measure for all levels of product recipes.
- Manage product and raw material shelf life.
- Reduce inventory levels.
- Reduce costs and waste.
- Plan and manage distribution and goods in transit.
- Reduce production lead times.
- Integrate shop floor control and quality systems with business systems.
- Maximise delivery loads.
- Keep late deliveries and stock outs to a minimum.
- Manage the storage and retrieval of compliance documentation and certification.
- Improve electronic collaboration with distributors and customers.
- Improve time-to-market and streamline business processes.
- Manage recalls.
- Manage seasonal demand.
- Maximise material yields.
- Comply with safety regulations.
- Comply with pricing regulations.
- Ensure efficient warehouse management and order picking and packing operations.
SYSPRO product modules can address these challenges
SYSPRO addresses these challenges with the following modules from its extensive enterprise resource planning suite. Suggested modules include:
- SYSPRO Analytics Module.
- Forecasting Module.
- Trade Promotions Management Module.
- Engineering Change Control Module.
- Lot Traceability Module.
- Return Merchandise Authority Module.
- Inventory Control Module.
- Contact Management Module.
- SYSPRO Reporting Services Module.
- Bill of Materials Module.
- Requirements Planning Module.
- Finite Scheduling Module.
- Landed Cost Tracking Module.
- Quality Data Collection Module.
- Document Flow Manager.
- e.net Solutions.
