Four strategies to increase productivity and competitiveness for food and beverage manufacturers

The impact being felt by Australians during their weekly shop due to rising inflation is comparable to what our local food and beverage (F&B) manufacturers are grappling with, in other words, rapidly increasing costs.

The post-pandemic era witnessed a departure from ‘just in time’ supply chains to a more cautious ‘just in case’ approach, where manufacturers maintained higher inventory levels to ensure a steady supply. However, this contributed to higher operational costs that had a knock-on effect on their profits, so we are starting to see market dynamics shift.

Thriving in the current environment requires a strategic blend of innovation, efficiency and adaptability. As consumer preferences shift, global supply chains are evolving and technology continues to reshape the F&B industry.

1. Achieving complete visibility

Achieving manufacturing excellence begins with gaining comprehensive visibility into every facet of the production process. By implementing an enterprise resource planning (ERP) and manufacturing operations management (MOM) solution, F&B manufacturers can monitor, track and analyse their operations from end to end to provide 360-degree visibility across the entire operation.

Armed with this knowledge, F&B producers can make informed decisions that lead to enhanced quality, minimised waste and optimised production processes. For example, by analysing historical data on production output and equipment performance, manufacturers can identify bottlenecks and other areas that can be improved.

2. Harnessing the power of predictive analytics on the shop floor

With comprehensive visibility of production processes, manufacturers can leverage predictive analytics embedded into their ERP system to anticipate maintenance needs, optimise inventory levels and streamline supply chain processes.

By leveraging actionable insights, F&B manufacturers can shift from reactive to proactive decision-making, preventing bottlenecks and disruptions to ensure continuous production. This strategic use of ERP technology not only improves productivity but also contributes to cost savings and resource optimisation.

3. Digitally transforming to achieve full connectivity

In the era of Industry 4.0, digital transformation and connectivity have emerged as crucial pillars for success in manufacturing. An advanced MOM solution can play a pivotal role in a manufacturer’s digital transformation journey and the real-time data exchange it fosters can enable collaboration and communication across the entire value chain.

With real-time data provided by an ERP system that is integrated with MOM, F&B manufacturers can generate accurate production schedules that consider capacity constraints like people, machines, tooling as well as materials and can help identify production lines that need to be rescheduled to match changing customer demand.

Digital transformation and connectedness enable F&B manufacturers to develop entirely new categories of products, creating new alternatives for customers, while keeping ahead of the curve.

4. Driving agile manufacturing

In the dynamic landscape of the food and beverage industry, the ability to adapt quickly to changing market conditions is a key competitive differentiator. Agile manufacturing goes hand in hand with digital transformation, enabling manufacturers to respond swiftly to regulatory changes or supply chain disruptions.

Agile manufacturing, supported by an advanced ERP and MOM solution, allows F&B manufacturers to rapidly react to shifts in demand due to changing consumer preferences, by experimenting with new, perhaps healthier recipes. Plenty of brands are currently devoting their time to making healthier or plant-based versions of their products that still taste delicious.

The ability to experiment with different recipes quickly is indispensable to a manufacturer’s prosperity, so modern recipe board instruments that can guarantee the accuracy of fixing levels, timing, blending strategies and cooking cycles are essential.

In specific areas of the food and beverage industry, equations can turn out to be mind-boggling; however, an ERP designed for manufacturers will actually want to deal with the subtleties and granular subtleties of even the most difficult set-ups in F&B production.

Manufacturers may also decide to change the packaging to move to paper from plastic or modernise the branding based on real-time feedback from consumers. It also enables them to introduce these new products swiftly, providing these manufacturers with a clear competitive advantage.

The role of technology in increasing productivity and competitiveness

To remain ahead of the competition and propel their businesses to new heights, the time has come for F&B manufacturers to recognise the transformative benefits of consolidating all their data onto a unified platform.

By integrating ERP and MOM systems seamlessly into their operations, manufacturers can not only optimise efficiency and reduce costs but also position themselves as industry leaders ready to navigate the challenges and opportunities of the future. By embracing embedded analytics, manufacturers will be able to unlock new opportunities and ultimately improve their bottom line.

As the F&B manufacturing industry evolves, those who embrace these strategies position themselves not only to survive but to thrive in an increasingly competitive market. Recognising the transformative benefits of Industry 4.0 technologies and strategic integration, manufacturers can optimise efficiencies, reduce costs and emerge as industry leaders ready to navigate future challenges and opportunities. In essence, the time has come for F&B manufacturers to leverage ERP combined with MOM as a catalyst for innovation and sustainable growth in an ever-changing competitive landscape.

James Robinson.

Top image credit: iStock.com/dusanpetkovic