Mark ReissigWhile advanced innovations and developments like the Internet of Things (IoT) reach each industry, changing the way we work together, the requirement for transformation is rising. Beef and poultry manufacturers, in any case, are questioning where to begin. The meat supply chain is long and complex, starting from farm to processing to packaging and logistics, right up to retail and catering. Sharing of data across the chain is minimal, if non-existent. Different departments work in silos. The left hand does not always know what the right hand is doing.
Beef, poultry and pork producers from Europe and North America all share a similar challenge: How to get the most value out of an animal. To maximize value, the right quality and cuts need to be assigned to the corresponding demands. These challenges are due to lack of visibility of data and processes, a problem that stems from a disconnected supply chain.
For example, a major producer of beef, pork and lamb in North America was planning the disassembly of its livestock using multiple inputs of massive data from different sources. Planners had no visibility of actual supply versus the potential supply that it could get based on specific meat cuts. Capacity planning was compromised and customer demands were not fulfilled efficiently.
Lack of collaboration is holding back meat processors from fulfilling their production potential and maximizing their profitability. A fully connected supply chain delivers efficiency end-to-end, and provides planners the decision-making support they need to help the company realize its business goals.
The beef and poultry industry is more market-driven today than ever before. Consumer expectations and demand are challenging and reshaping the way the industry operates. Trends driving expansion include population growth, increased demand, foodservice industry growth, health regulations and increased export opportunities. As challenges continue to present themselves in the meat industry, manufacturers must have the flexibility to adjust business practices and discover the planning capabilities to add value to their products. The right planning system will support every link in the supply chain — sales, logistics, supply chain, procurement, operations, planning, customer service and management.
To generate savings across the supply chain, plans must be made for your business reality. A plan that doesn’t take into account the unique constraints and rules of your business is of no use.
Better Agility To Respond To The Market And Disruptions
The disconnect between disassembly and processing is a barrier to creating strategic plans. Without critical information, managers cannot price for profit, address product shortages, create value plans, ensure optimal production and set feasible targets. This reduces agility in responding to market changes and disruptions in supply, demand and production.
Many companies have plenty of data scattered across various systems. To put a finger on the pulse of your company’s operations, you need an integrated planning system that supports decision-making all the way from the production plant to the boardroom level.
The key to building an agile supply chain is to have the right information at your fingertips. Just as important is the ability to immediately calculate and understand the impact of events across your entire supply chain. Minimize the side-effects of disruptions by continuously optimizing and re-planning schedules, while keeping an eye on the end goal.
With the right system, managers can quickly respond to changing market conditions and customer orders, and even unpredictable consumer preferences. Creating what-if scenarios helps them find the right mix that will boost profits and other relevant business KPIs.
In today’s business environment where things can change at a moment’s notice and customers expect faster turnarounds, planning agility gives food manufacturers a clear advantage over the competition. Offer high service levels while keeping inventory levels low. Sell the right products at the right prices, at the right time, always. Don’t let your planning puzzles and supply chain complexity eat you up. End-to-end visibility gives you full control of your supply chain. Take the first step towards improved decision-making, robust growth and higher revenue.
Mark Reissig is a Solutions Architect at Quintiq.
