There has never been a more complex time to be a player in the food industry. The industry is highly regulated. Competition is fierce. Ever-changing customer demands can make or break a firm. How do you manage the challenges of supply chain management in the food industry and remain successful?
Technological solutions make it easier to stay competitive, compliant, and meet customer demands. Learn about how ERP systems help you manage supply chain management in the food industry easily and effectively.
There are a number of challenges that are specific to the food industry. Any of these factors can dramatically influence your success.
Government regulations exist to protect consumers. However, complying with these laws can be onerous and expensive – just because you’re obeying one set of agency regulations doesn’t mean that you’re meeting another agency’s standards. The penalties for not fulfilling your legal obligations are stiff; you could face jail time as well as losing your business.
A second challenge to operating in the food industry is the level of competitiveness. Larger food manufacturers have greater sway with major retailers, making it easier for them to get their products onto shelves. Moreover, there are fewer major grocery chains in business today, which increases their buying power while making it more difficult for suppliers to gain a foothold in the market.
Consumers themselves represent another challenge to food manufacturers. Their demands seem to be ever changing. Customer demand for healthier ingredients and greater transparency in the supply chain put more pressure on food companies.
All of these challenges contribute to complexities in supply chain management in the food industry. There are so many moving parts within the supply chain that it can be very hard to keep all of them in working order.
Operating within the food industry doesn’t have to be a series of insurmountable challenges. The right technology makes supply chain management in the food industry simpler. ERP systems help you overcome the obstacles that plague many food manufacturers.
ERP systems increase transparency and traceability for food manufacturing firms, making it easier to comply with government regulations. In the unfortunate (and hopefully highly unlikely) event of an outbreak, you can easily figure out the source of the problem.
In addition, an ERP system gives you a competitive advantage. Large grocery chains want to deal with manufacturers that have efficient systems and processes in place. Having an ERP system is a step in the right direction.
Moreover, an ERP system satisfies customers’ demands for greater transparency in food production. The ERP system provides in-depth details on the origin of ingredients for labeling purposes.
Effective supply chain management in the food industry doesn’t have to be an insurmountable challenge. ERP systems solve a number of problems so that your supply chain is smooth and efficient.