The operating environment for companies in the food and beverage industry is one of constant pressure to change and adapt to new ways of working.

Companies are focusing on the need to act quickly and effectively with the lowest possible risk.

Challenges and Opportunities

Manufacturers in the food and beverage industry face numerous challenges.

  • FDA Regulation
  • FDA Approvals
  • Product Information – Packaging requirements (Language)
  • Product Traceability
  • Sales Model – Wholesalers, Supermarkets
  • Branding
  • CRM – Direct Response Marketing
  • Mergers and acquisitions

Government Regulations

There are new FDA reporting requirements and regulations. Products are recalled due to the outbreak of illness. Raw material is sourced globally, with different health regulation standards from region to region. Freshness and purity standards are continually rising.

Competition

Rising competition for food and beverage companies is driving them to increase profitability and market share with zero inventory while selling to fewer retailers and more demanding consumers.

Costs

Food and beverage companies have razor-thin margins and increasing costs for transportation, labeling and packaging.

International Demands

Point-of-sale (POS) globalization and eCommerce are driving down the time companies have to react to market demands. Trade funds, promotional effectiveness, and product channel profitability are constantly shifting. There is global sourcing for purchasing. Local tastes, established brands, differing demographics, shopping patterns, and income distributions all are strong market influencers. Local and regional requirements demand multiple units of measurement.

Supply Chain Planning and Production

Demand forecasting and resource availability imbalances are critical factors for consideration, as are powerful mega retailers in the marketplace with complex integrated supply chain demands. Time is dramatically of the essence, because there is real-time available-to-promise and quicker design and time-to-market demands. Collaborative forecasting must occur in “virtual” supply chains.