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Managing Crisis Within the Food and Beverage Supply Chain

supply chain

Managing Crisis Within the Food and Beverage Supply Chain

If there’s one thing France hasn’t experienced a shortage of recently, it’s supply chain issues. The pandemic affected food and drink availability in a number of ways, from issues with growth and production to a shortage of delivery vehicles. This has caused a number of issues for food and beverage manufacturers, who are struggling to keep up with demand as a supplier while also experiencing issues in their own supply chains.

The wine shortage in 2021, caused by unseasonably cold weather in key wine-growing regions, has also had a serious impact given France is the second-largest wine producer in the world. The l’Association Nationale des Produits Alimentaires attributed current and future expected shortages to price rises throughout the supply chain.

It’s clear that we’re likely to experience more supply chain issues in the near future. But there are ways food and beverage manufacturers can mitigate these risks. Here, we’ll explore the options.

Protect your existing supplies and production

At a time when food production is affected by issues such as the weather, protecting existing resources is essential. Many food manufacturers have had to recall products because of avoidable issues in the factory. Food manufacturing powerhouse Kraft Heinz made global headlines when it had to recall over 1.2 million containers of cottage cheese because they weren’t stored at the correct temperature.

Equipment maintenance is essential to prevent unnecessary product spoilage and recalls. Many manufacturers will operate on a reactive maintenance model, only maintaining machinery when it fails. Instead, switching to proactive maintenance and checking equipment regularly can help to identify issues before they become a problem. Predictive maintenance technologies are now more commonplace too and will monitor the health of systems automatically.

Food contamination is also an issue that can result in recalls and even affect the health of end consumers. It was reported in 2021 that foodborne illnesses increased between 2018 and 2019, with salmonella topping the list of pathogens. There are a range of processes that can threaten the hygiene of food – from handlers not washing their hands to unsanitary cabling. Many manufacturers use stainless steel goulottes métalliques because they’re easy to clean and decontaminate.

Diversify your suppliers

Access to, and costs of, the raw materials needed to make foodstuff is a key issue right now. it’s essential for manufacturers to diversify their suppliers in the wake of supply chain disruptions. If you rely on one or two suppliers for one key ingredient and they experience issues, you’ll feel this more acutely.

In the wake of COVID-19’s dramatic impact on small businesses, while global behemoths like Amazon increased their profits, we’ve seen a shift towards prioritising local businesses. To encourage this, the government introduced click and collect services for small businesses that didn’t have the resource to set up an ecommerce presence.

The same should go for businesses looking for new suppliers. Small businesses need support, and local suppliers can offer more security to your business because they’re more easily accessible. What’s more, with a renewed focus on sustainability in France in 2022, going local can boost a business’ green credentials.

Support the elimination of food waste

Consumer food waste is a real problem worldwide, but especially in France. Despite a number of legislations in place to prevent food waste, research by Statista has shown that bread is one of the food items French consumers waste the most often. The survey found that 16% of consumers were throwing bread away at least once a week. Given that flour is an ingredient that has soared in price, throwing away its end product is costly.

At a time of food shortages and soaring prices, the nation should be focusing on reducing food waste. France is a global leader in the reduction of business food waste, as well as helping consumers to recycle applicable soiled food. The government and businesses can build on this platform with educational campaigns on reducing the amount of food that is thrown away or recycled.

Food manufacturers can play their part too. Packaging should include information on how best to store the food, as well as tips on making it last longer – such as storing unused bread in the freezer, transferring dried food to airtight glass containers, and putting fresh herbs in water.

France’s supply chain issues are set to continue into 2022. While it’ll be difficult to completely prevent shortages and price fluctuations, there are a number of steps that food manufacturers can take to mitigate these issues and ensure they can continue to provide essential resources for businesses and consumers alike.

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Sources

https://www.statista.com/statistics/1143426/coronavirus-changes-to-supply-chain-retail-worldwide/

https://www.connexionfrance.com/French-news/Which-products-are-or-could-be-hit-by-stock-shortages-in-France

https://www.statista.com/statistics/1128445/most-frequently-wasted-food-in-france/

https://blog.winnowsolutions.com/4-ways-france-is-leading-the-food-waste-agenda

https://www.gardenersworld.com/plants/quick-ways-to-protect-plants-from-frost/

https://www.foodsafetynews.com/2021/04/france-sees-increase-in-foodborne-outbreaks/

https://www.nytimes.com/2020/11/03/business/france-shopkeepers-lockdown.html

https://www.thelocal.fr/20201102/click-and-collect-how-to-help-your-local-business-during-lockdown-in-france/

https://www.housebeautiful.com/uk/lifestyle/food-drink/a19417308/how-to-make-food-last-longer/

https://www.highspeedtraining.co.uk/hub/preventative-maintenance/

https://www.foodsystemsjournal.org/index.php/fsj/article/view/836/817

solochain

5 Insightful Use Cases for Food & Beverage Companies – SOLOCHAIN WMS

The digitization of supply chains is well underway. SaaS solutions, such as the SOLOCHAIN WMS, have made it easier for Food & Beverage companies to reap the operational benefits of new technology solutions, rapidly obtain ROI, and stimulate growth.  

In this blog, we take a quick look at five scenarios that illustrate how the SOLOCHAIN WMS not only improves daily operations on the floor, but also provides management crucial information to help leaders make better decisions. Find out how SOLOCHAIN concretely enables more efficient and cost-effective activities in the warehouse and paves the way to better client experience, sustained growth, and higher margins.

Real Time Visibility on Inventory for an Agile eCommerce Grocery

Supply chain operators know the impacts of inventory inaccuracies on profitability. Short of accurate information to manage their stocks and stay ahead of the demand signal, companies are doomed to make poor use of their capacity, suffer from losses, and lose the ability to fulfill orders on time.

A grocer operates a multichannel operation from his distribution center. Employees must deal with replenishment orders for a dozen brick-and-mortar groceries, manage cross-dock transfers, and fulfill and ship customer orders made through the grocer’s eCommerce platform (D2C).

With real time updates that give precise information on every item’s location, and rates of inventory accuracy above 99%, SOLOCHAIN ensures that inventory is easily located and properly handled by employees.

Thanks to automated data exchanges between their ERP system and SOLOCHAIN, handheld scanners that are integrated with the WMS, and a 2D digitized map of their distribution center, the grocer’s employees can rely on accurate inventory data across their entire network and intelligent replenishment suggestions that anticipate on the demand signal.

Manage the Heat Efficiently in a Multi-Temp Facility

Businesses in the Food & Beverage industry have to deal with expiration dates, customer specific shelf-life requirements, and traditionally thin margins. Failure to manage fresh and frozen inventory properly can rapidly melt a grocer’s profits.

Take our grocer from the previous scenario: their distribution center has three different temp zones, one of which is a cold storage area. Employees at the dock affected to receiving and transfer tasks must therefore contend with items that must be handled efficiently and expediently to avoid losses.

SOLOCHAIN supports employees receiving frozen goods of the environmental conditions that must prevail in every section of a truck before they accept the delivery. Thanks to that information, they can rapidly make sure that all items meet quality standards, which enables them to come to quick and efficient decisions regarding their reception.

In the eventuality that items do not meet the standards, SOLOCHAIN also tells them what steps must be taken to refuse a shipment and inform the system of any and all changes to inventory. Thanks to the WMS, frozen goods are properly handled on the dock and congestions are avoided, preventing operational penalties and costly losses.

Making Candy Bars that Make Everyone Smile

Food processing requires that operators pay attention to a variety of details: FIFO across different temp zones, items consumed in a batch, customer shelf-life requirements, etc. To ensure its commercial success, a candy bar processing facility must be able to rely on the right data so that items are consumed at the right time and processed products are efficiently picked and shipped that meet the client’s standards.

SOLOCHAIN supports all activities in the processing facility, from the reception of ingredients to the production of processed goods to shipping the candy. At every step, adaptable mobile workflow and graphical tools are accessible to employees on intuitive, easy to read interfaces. Dashboards provide them the right information to ensure that items are handled properly and efficiently. SOLOCHAIN will, for example, communicate FIFO data to employees picking ingredients, guaranteeing that stocks are efficiently consumed and losses are avoided. It will also inform employees of a client’s shelf-life requirements, making sure that picked items meet their standards and are not returned, which avoids costly penalties.

Meanwhile, SOLOCHAIN affords management granular visibility on crucial information: who is performing what task, details regarding production progress, all inventory modifications in real time, and the status of orders fulfilment. Thanks to intuitive dashboards and detailed reporting capabilities, the SOLOCHAIN WMS enables faster order fulfillment, improved customer satisfaction, and, ultimately, higher margins.

Download WMS SOLOCHAIN Product Sheet Here

Efficient Recalls at the Ice Cream Factory

While all food manufacturers do their best to steer clear of having to perform recalls, they remain a part of the game. The real differentiator between competing companies is how well recalls are managed. The key, of course, is to achieve recalls that are precise and expedient. By doing so, operators avoid crippling financial penalties and maintain the high service levels that have allowed them to build strong customer confidence over time.

Thanks to its powerful traceability capabilities, SOLOCHAIN informs an ice cream maker of all the items that were consumed in a batch. Moreover, it allows the ice cream maker to rigorously trace each and every one of these items, from vendor to customer. And if that wasn’t enough, the WMS also contains a visual tool that makes it easy for employees on the floor to verify, understand, and comply with FDA regulations.

SOLOCHAIN therefore makes it easy for the ice cream maker to precisely identify which lot of cream was problematic, which batches of ice cream consumed that cream, and which must consequently be recalled. SOLOCHAIN let management know of the exact location of every unit from these batches, enabling them to make precise and efficient recalls. Thanks to SOLOCHAIN, no good ice cream goes wasted!

Brewing and Delivering Efficiently Thanks to Facilitated Compliance

A brewer delivers its beers across the United States and Canada. From state to state, province to province, the rules relevant to what information must appear on labels are different. Employees must therefore ensure that every shipped case of beer complies with regulations and requirements in the client’s location. When a brewing operation endeavours to deliver efficiently on such a large territory, clerical operations are no longer an option.

SOLOCHAIN is easily integrated with the brewer’s ERP system and labeling software & equipment to support labeling and shipping activities in the warehouse. The WMS acts as hub that automatically relays information to the brewer’s systems and employees regarding a client’s requirements and the laws prevalent in their state or province. The data is thus fed to the labeling software and available on easy-to-read interfaces, which expedites the work of employees fulfilling orders on the floor.

Thanks to significant efficiency gains and a drastically reduced error ratio in their shipments, the brewer achieves higher service levels, which attracts more clients and enables growth.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

quality control

Understanding the Importance of Quality Control in Manufacturing

For manufacturers, there is a direct link between number of units sold and quality control. It may not be super clear and obvious that there is a link but nevertheless, the link exists, and it is solid: Consistent, well-made products boost revenues and customer retainment, while product defects drive existing customers and prospects into the eager arms of the competition.

The word “quality control” is often used loosely and can have different definitions for different people. The infographic below goes to the trouble of defining QC and disorientating itself from quality assurance, another necessary discipline in the world of manufacturing. The main point of quality control is its focus on preventing defective products from getting out in the world and reaching the consumer. Once you understand this simple (but sometimes elusive) definition of quality control, its connection to sales and the number of units sold becomes crystal clear.

The true cost of product defects is high on a number of fronts. If the end-user receives a defective product, a lot of bad and costly things can happen. If the product causes injury or death, just the cost of litigation can be enough to put even a large manufacturing organization out of business. And that’s ignoring the emotional toll of having one of your products hurt a person. If the manufacturer is lucky, the defects will be identified on the receiving dock, in which case the costs may be “limited” to a rejection, return and replacement.

On the flip side, high-quality standards help build a company’s reputation for quality. These high-quality standards can help attract prospects, generate referrals, earn reorders and allow the company to set higher prices. That is why QC is so important and should be emphasized early and often. For more on this, continue reaching below on how to improve your QC today.

 

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John Vogel brings over 38 years of experience in the Aerospace and Defense sector and leads the Quality function at Marotta Controls, Inc. As the VP of Quality, John is responsible for Quality Control, Quality Engineering, Quality Systems, Supplier Quality, Continuous Improvement and Calibration & Metrology.

Industrial Sensors

Three Key Aspects that will Influence the Demand for Industrial Sensors by 2027

Large-scale adoption of industrial robots across manufacturing & processing industries is expected to offer a considerable push to the industrial sensor market outlook. According to the International Federation of Robotics, around 2 million industrial robots are expected to be utilized across factories worldwide by 2022. Robotic Process Automation (RPA) technology in the manufacturing sector, as well as automation equipment such as HMI (human-machine interface) and PLC (programmable logic controllers) in assembly and production lines heavily, rely on industrial sensors.

The demand for such automation equipment may accelerate supported by favorable government initiatives designed to advocate the acceptance of industrial automation in the food & beverage sector. In March 2021, the Government of Australia announced an investment of USD 993 million to support the region’s F&B manufacturers under its MMI (Modern Manufacturing Initiative) scheme.

Projections from a report published by Global Market Insights, Inc., suggest that the industrial sensors market is expected to surpass USD 30 billion by 2027. Although, it is vital to note that the shortage of raw materials & components due to imposed COVID-19 restrictions have severely impacted the industrial sensors market growth in mid-2020. The shift of existing manufacturing facilities to new regions due to political and business obstacles might hinder the market growth during the pandemic.

Here are some of the trends to look for in the industrial sensors market until 2027:

Force Sensors Witnessing High Demand

Industrial IoT is steadily extending its reach across the pharmaceutical, food & beverage, chemical, and oil & gas sector. As a vital component in industrial IoT, industrial sensors are used to detect, measure, and analyze parameters such as level, temperature, pressure, force, and position, among others. Reports indicate that the force sensor segment held a market share of around 8% in 2020.

Force sensors are used to measure various physical parameters such as torque, mass, and weight of an object in the industrial sector. These sensors are commonly used in counting scales, hopper scales, bench scales, platform scales, truck scales, and belt scales. Force sensors have high capabilities to monitor the load and prevent industrial machinery from overloading and find application in force exertion control and industrial test benches in industrial robotics.

Demand Across the European Pharmaceutical Sector

Europe is home to some of the world’s leading pharmaceutical manufacturers such as AstraZeneca, Novo Nordisk, and Pfizer, Inc., among others. These companies are currently emphasizing on the mass production of vaccines and novel drugs. Certain equipment used in the medical industry are integrated with force sensors for fluid monitoring applications, endoscopic surgery, dialysis machines, physical therapy equipment, orthopedics and MRI devices.

Pharmaceutical companies in the region are extensively focusing on new research & development activities, increasing the adoption of industrial sensors. High-volume manufacturing and large-scale investments in the pharmaceutical sector will devise new opportunities for industrial sensor manufacturers in Europe. As per estimates, the industrial sensors of Europe is anticipated to register 7% CAGR from 2021 to 2027.

Use of Gas Sensors in Mining Application

The demand for industrial sensors such as gas sensors is escalating in mining & exploration activities. Generally, industrial gas sensors are used undermining conditions to monitor safety parameters to safeguard miners from toxic & flammable gases. Linking sensors with IoT systems will help mining companies to extract real-time & exact data about the temperature, pressure, and gases in the mines. The mining application segment held a 7% market share in 2020 and is projected to grow at 8% CAGR by 2027.

Source: https://www.gminsights.com/industry-analysis/industrial-sensors-market

food and beverage

What’s Keeping Food and Beverage Companies Up at Night in 2021?

Here are the top issues that most food and beverage companies are trying to solve right now and some tips on how to work through these pressing problems. 

 

Climbing mountains is nothing new for food and beverage companies that, like most organizations, face a steady stream of new challenges in the course of business. Whether they’re complying with new regulations, adapting to changing consumer demands, or strengthening their supply chains against disruption, food and beverage companies have to stay on their toes or risk falling behind the curve.

 

Right now, some of the key issues that these organizations are facing include:

 

-Changes in consumer demand, both in terms of the volume and variety of manufactured goods consumed.

 

-A higher volume of direct-to-consumer (DTC) transactions. With more consumers shopping from home, setting up and fulfilling these distribution networks have become full-time jobs for food and foodservice organizations.

 

-Disruption of transportation networks needed to be able to deliver these DTC orders (e.g., truck driver shortages, ocean container shortages, transportation capacity constraints, etc.).

 

-Workforce presence, composition, and location. Despite the current economic situation, available labor is still difficult to find in certain areas.

 

-The uncertainties of virus transmission have led many countries to adopt food protectionist policies, DHL points out in a recent report, which has disrupted end-to-end supply chain continuity.

 

-This, in turn, has increased the global price of food and beverage products and has made the global food supply more inaccessible.

 

-Reductions in passenger air travel have impacted air freight considerably, the method by which most perishable products are transported. (According to DHL, air freight capacity declined over 80% on routes between Europe and Latin America in 2020.)

 

-Workforce health and safety—an issue that was exacerbated by the global pandemic. For example, companies have had to rethink their plant floor design in order to accommodate social distancing guidelines. Doug Mefford, our product manager has recently explained why using a WMS can result in an enhanced work environment for the warehouse employees all while reducing risks and potential errors in an interview with Food Logistics.

 

-Raw material and component inventory shortages affecting production. As supply chain shortages persist, everything from steel to resin to electrical components remain difficult to source in the current market.

 

-Inventory shortages that impact manufacturing and distribution companies’ sales.

 

The list of challenges doesn’t end there, but these points paint a picture of an industry that’s still shaking off the impacts of the global pandemic while also looking for ways to work smarter, better, and faster in 2021 (and beyond).

 

Long-Term Resiliency Wanted

 

As the coronavirus outbreak spread, unprecedented challenges have surfaced for food and beverage companies all over the world. Extraordinary measures have been taken to keep the food supply chain safe, efficient, and moving. Industry leaders with agile solutions in place have been able to mitigate some of the fallout from the pandemic, while others are still learning how to cope with the new realities of the crisis.

 

Regardless of where they land on the technology adoption curve, companies need to be able to quickly identify, configure/develop and adopt new capabilities that ensure long-term organizational resiliency.

 

“COVID-19 has impacted the entire food and beverage (F&B) supply chain, from farm field to consumer,” DHL writes in Food Logistics. “It has upended the sector’s operational capacity in its entirety, including production, processing, packaging, and distribution.” COVID also caused a shift toward a greater need for efficiency in production amid the long-term realities of staff capacity shortages and an unpredictable regulatory environment, the freight provider points out.

 

Three Steps to Take Now

 

The good news is that the global food supply chain nearly always shows resilience in the face of unanticipated challenges. Here are three steps that all food sector companies can take now to make their supply chains more resilient and responsible:

 

Focus on go-to-market versatility. Existing go-to-market channels like bars and restaurants could take months to fully recover from COVID-19. “Companies, therefore, need to invest in omnichannel capabilities, especially focusing on online/digital solutions,” Deloitte explains. “This should also include product [interchangeability] across channels.”

 

Step up end-to-end supply chain management. Work with a wider pool of suppliers, including regional ones, and keep larger strategic stocks. A broad product range is more expensive to maintain, but spreads risks, Deloitte acknowledges. “An alternative is to simplify recipes and/or remove problem products from the portfolio, resulting in a leaner, more manageable product range, less risk, and lower costs.”

 

Leverage technology ecosystems. Good supply chain visibility starts with a robust technology hub that includes a warehouse management system (WMS), transportation management system (TMS), yard management system (YMS), and order management system (OMS). It also includes Industry 4.0 technologies that provide advanced capabilities. “Digital supply networks are going to make businesses less vulnerable in the longer term,” Deloitte says. “Robots, for instance, reduce dependence on migrant labor, while track-and-trace solutions help businesses zoom in on supply chain bottlenecks.”

 

With the global pandemic still in full effect, companies across the food supply chain must plan for the continuing effects of the outbreak on different areas of supply, demand, and the overall economy. Using the strategies outlined above, companies can work to improve their supply chain resilience and visibility in a way that addresses the rigors of the current operating environment while also helping organizations prepare for the future. Generix Group North America has recently hosted a webinar Post Pandemic Impacts on the Food & Beverage Business featuring a guest speaker from Chapman’s Ice Cream, John Fleming. You can listen to the recording here and plan how to address supply chain resilience within your own organization.

 

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. We invite you to contact us to learn more.

 

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This article originally appeared on GenerixGroup.com. Republished with permission.