The Foundation for Supply Chain And Planning Capabilities in F&B Industry

The Foundation for Supply Chain And Planning Capabilities in F&B Industry

The market for food and beverage sector is undoubtedly, big. So it’s to be expected that the challenges accompanying it also is big and that some insight say, it’s unforgiving.

Suffice to say, anyone working in this market have to spent days and nights worrying and looking for solutions to overcome challenges and risk coming head on to their business.

Namely, raw material lead times that are long and likely uncertain (what more if the raw materials are perishable), fluctuations of the commodity prices, uncertainty and seasonal-related factors, manufacturing and supply constraints, and of course, the never-ending customer and/or market demands.

You get the idea.

That said, the market is still lucrative and for anyone possessing the talent, interest, and insight in this field, the right planning and strategy for proactive solutions can be made to counter the problems head on, long before it happen for the company to adapt accordingly as well as being flexible to the ever-changing market demands.

The Elements Of Success For F&B Business

Deep And Accurate Insight

Success for the business is defined from the creation of the product or service and delivered successfully to the customer and what better way to do so than to start at the beginning?

A proactive and capable planning requires a deep insight (as accurate as possible) and experience as that will influence the inventory for manufacturing right up to shipping the end product to the customers and possible unplanned changeovers in any point of the chain.

This will in turn helps all personnel to carry out the plan effectively and proactively. Plus, with current tech we have a number of good tools and software that we can use to improve our accuracy in forecast (tools needed?)

Inventories  

Inventories are one of the main elements in this particular type of business (mainly because of the potential danger of the raw materials that used are mostly perishables) and the target is to minimize it as much as possible while it supports the business’ goals.

And to achieve it by determining the best state based on the business’ objectives and market demands at the same time. This will ensure that the right products (and the right quantity) will arrive at the right location and time.

Yep, that’s how we got the food at your table.

A planning that requires to hit vastly different targets from other sides of the company certainly have the people always on the move.

Planning

Manufacturing

This section involved inputs from multiple sides (data from sales, replenishment, and inventory) to know for sure how much and which products to produce and trying to minimize total supply chain costs while meeting customer’s requirements at the same time.

With F&B, there are two different levels in manufacturing planning with the first is a rough number of quantities are assigned to production based on forecast demand as well as he capacity of the factory; and the second level is batch processes is planned in more detailed manner to meet customer’s needs, and in sync together with the first level.

The key here, is to find the optimal number and detailed plans to minimize the costs, acknowledging constraints, and still meeting the customer’s demands.

Replenishment Planning

Replenisment planning ensures you to solve any availability issues proactively before it happen, and that means by taking in account of “what ifs” scenarios.

This type of planing really requires a deep insight and experience to predict which product will run out faster than expected (or even surpluses), since if this issue happen there’s a potential that your customer might turn to others for their needs.

Sales And Operations Planning

For this section, sales and operations planning (S&OP) deals with long term planning and rounds out the whole planning foundation mentioned previously, where the plan aligns and sync with expected demand and noting potential risks far enough for the other planning section able to adjust accordingly in timely manner.

In conclusion

A robust and effective plan is the key for a successful food and beverage business, and being proactive to market demands will cement your company’s position in today’s challenging, competitive market.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Social media & sharing icons powered by UltimatelySocial
error: Apologies. Our website is protected
%d bloggers like this: