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As the world’s population grows at ever increasing rates, demand for food is growing quickly. Australian food producers are seeking out new opportunities locally and abroad to take advantage of this growing demand.
Challenges are the same for all producers – capital investment, cash flow, HACCP compliance, seasonal effects on supply and demand – all this whilst ensuring on-going profitability.
“Where to next?” is the question for many Australian food producers.
Where should I be investing that hard-earned cash flow? How do I manage these challenges?
Streamlining your Food and Beverage business for growth and success
Streamlining your business for growth and success is a common theme across all food producers. The answer to the “Where to next?” question.
Streamlining operations can take on many different forms – new plant and capital equipment in the factory, training team members, growing the workforce, enabling scalability and implementing a new Business Management Solution.
Implementing the right Business Management Solution is an effective way to streamline your Food and Beverage business for growth and success. This is because a modern Business Management Solution touches every part of your organization – Finance, logistics, customer engagement, ordering / sales, warehousing and manufacturing.
Waiting too long to implement new systems is a mistake that far too many food processing and food distribution companies make. If your Business Management Solution is outdated then, at some point in time you will outgrow those systems and you will run into trouble.
Think of the business functions that require substantial systems processing power. Can you afford to live without a systemised approach to the following functions?
- Getting the right raw materials at the right time to produce finished goods and get your stock shipped on time and in full to your customers;
- Forecasting and planning (purchase planning and production planning);
- Compliance – Batch traceability with expiry date to ensure the right foods are shipped and tracked;
- HACCP compliance;
- Reporting – across all divisions in the business – Finance, sales, purchasing, manufacturing;
- Ensuring On Time, In Full delivery for your customers;
- Managing cash flow.
Enabling a consolidated view of processes across your Food and Beverage business with the right Business Management Solution
A Business Management Solution can streamline the entire business process to deliver better customer service, increased cash flow and better staff satisfaction.
This is accomplished through the provision of a consolidated view of processes across the business. Each functional area of the business is inter-connected with other parts of the business through an integrated solution.
To explore this in more detail, think of a single set of transactions in any given day:
- Your customer places an order;
- The order processing team manages the order and checks stock availability and available to promise shipping times;
- Manufacturing has to ensure sufficient raw materials;
- Manufacturing has to produce the item in a timely manner whilst managing other demands for production;
- Expiry dates and batch traceability has to be monitored;
- A quality assurance process has to be applied;
- The warehouse picks the order;
- The order is shipped;
- The items have to reach your customer in a timely manner;
- The raw materials have to be re-ordered by the purchasing manager to make sure the correct stock levels are maintained for future orders;
- Finance has to chase the money / outstanding invoices;
- Sales follows up to check on customer satisfaction.
As you can see, there are a lot of moving parts to a single customer order.
A good Business Management Solution will tie all of these elements together to provide a consolidated view of all business transactions.
As an example of this let’s consider one key element of the customer order we referred to above: Having the right raw materials and finished goods to for-full the customer order.
A good Business Management Solution will monitor all customer orders to give a consolidated view of demand. This demand, together with forecast demand and previous demand that is recorded in the solution will be used by the system to assist with purchase planning. Purchase planning will ensure that the right raw materials (and finished goods) are available for production and ultimately shipping to your customer. Purchase planning does this by taking into account supply and demand, lead times, economic order quantities, buying cycles and minimum shipping quantities. This functionality from your Business Management Solution combines information that would otherwise be in multiple spreadsheets into a single consolidated view.
The system then recommends which purchase orders to place to ensure the optimum level of stock. If you hold too much stock you are tying up cash. Hold too little stock and you will have a negative effect on customer satisfaction.
Assuming all systems are aligned, and the right level of raw materials is received and available in the warehouse then the next challenge is production planning. Now decisions need to be made to manage competing priorities – what items to manufacture by when to optimize stock levels, expiry dates and the ability to provide on time in full delivery for your customers. Now we are looking at the manufacturing scheduling module in your Business Management Solution. The functionality delivered will include taking into account resource and capacity constraints to optimize production. In the food industry this is particularly relevant with short shelf life items, sequence dependent change over and other industry specific requirements.
Managing these complex processes manually is not possible. The investment in an integrated Business Management Solution takes away the headache and provides clarity to all business processes, no matter what the vertical food and beverage market you are in.
For more information visit https://www.leveragetech.com.au