Buyer-Supplier relationships are changing the Food & Beverage industry.
Supply Chain Collaboration
While some manufacturing sectors could maintain high inventory levels, to the chagrin of their CFOs, food and beverage manufacturers are not afforded the same ‘luxury’. Considering 6 stages of the operation (sourcing, production, processing/packaging, storage, wholesale and retail distribution), lacking proper inventory control and warehouse management, within any stage, exposes your company to a range of food or beverage issues (e.g., spoilage, contamination, etc.) and risk of liability. Integration of the supply chain is foundational to: lower ingredient costs, while ensuring the best-suited supplier is chosen; improving upon the supplier quality initiatives; and, managing the performance of the supply chain.
Quality Management System
Product recall cases continue to grow. They are costly to the organization and does damage to the brand reputation. The diligence of the Supplier Quality program helps mitigate these risks, by ensuring all aspects of the product and process follow standard guidelines and safety standards.
Cross-functional / Inter-Supply Chain Transparency
Fragmented information and lack of systematized collaboration spells trouble within the food supply chain. From sourcing ingredients through quality control and production, internal stakeholders need accurate information and the ability to include cross-functional stakeholders in key decisions. But the requirement for transparency and collaboration does not end at the “four walls”. Suppliers, whether ingredient, logistics or warehousing, need effective methods to communicate with the right people internally, based on situation.
Demand for product can change and production levels follow, yet the desire to maintain lower raw materials in inventory doesn’t waiver. Maintaining strong supplier relationships, and supporting the effort through digitalization, assists with suppliers being able to adapt to your current needs.
Upstream sustainability has been core to F&B manufacturers for years now. Social and environmental pressures are seeking further improvements in this area. Consumers have become concerned with the amount of unnecessary excess water in canned fruit; municipalities reported that approximately 31% of solid waste is attributed to packaging, of which two-thirds is estimated to be food packaging; and, An estimated 30% of all food is reportedly thrown out, with grocery retailers leading the charge as they want to market ‘fresher’ product. Having insight into the practices of your trading partners is paramount to keeping brand reputation high, and possibly even finding sources of savings in the process. A systematized method to audit your trading partners behavior is where it begins.
We have successfully work with Food & Beverage manufacturers in these critical areas.