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.

• 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.
• Specialization.
• 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.
• Optimize 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.
• Maximize 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.
• Maximize material yields.
• Comply with safety regulations.
• Comply with pricing regulations.
• Ensure efficient warehouse management and order picking and packing operations.

Solution for Industry

·                       1:-      BizIntelligence

·                       2:-      VANS