{"id":9636,"date":"2024-04-04T08:00:02","date_gmt":"2024-04-04T15:00:02","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9636"},"modified":"2024-04-04T08:55:59","modified_gmt":"2024-04-04T15:55:59","slug":"key-ingredients-to-a-synchronized-food-and-beverage-supply-chain","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2024\/04\/key-ingredients-to-a-synchronized-food-and-beverage-supply-chain","title":{"rendered":"Key Ingredients to a Synchronized Food and Beverage Supply Chain"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9637&#8243; img_size=&#8221;full&#8221;][vc_column_text]Updated: April 4, 2024<br \/>\nPublished: July 17, 2021<\/p>\n<p><span style=\"font-weight: 400;\">In today\u2019s competitive food and beverage marketplace, events occur and challenges arise that impact the normal course of business. Things like customers changing orders, ingredients and supplies coming in late or even a packing line randomly going down for a short period of time was called a disruption. In essence, today, these are for the most part just part of the normal day to day business of food manufacturing. Sure, they cause some issues but in essence, these are simply interruptions rather than disruptions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Disruptions tend to be much more significant and far-reaching. Pandemics, border closures, <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/07\/named-and-unnamed-storms-and-watching-the-horizon\" rel=\"noopener\"><span style=\"font-weight: 400;\">weather anomalies<\/span><\/a><span style=\"font-weight: 400;\">, geo-political issues, distribution lane blockages, <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/06\/why-direct-labor-is-still-the-backbone-of-manufacturing\" rel=\"noopener\"><span style=\"font-weight: 400;\">worker shortages<\/span><\/a><span style=\"font-weight: 400;\"> and similar events are forcing supply chains to their breaking point. These types of events are truly disruptions because it pretty much alters strategic and tactical plans. These disruptions are occurring more and more frequently and wreaking havoc on all aspects of food and beverage manufacturing operations, especially the supply chain. Supply chains today must be agile, quick and nimble. They must be flexible, resilient and easy to re-configure to adapt to changes in the marketplace so that the products and data keep flowing. It\u2019s easy to forget that there are two supply chains that need to operate in unison; the physical supply chain and the digital supply chain. If one falters or is not in sync with the other, they both fail.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Supply Chain Management is a Baked-in Philosophy<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">I have recently been in a number of discussions with members of the QAD team to determine what food and beverage manufacturers need to do to ensure their supply chains remain agile and nimble. As our discussions evolved, we put the food and beverage supply chain into the same context of a product that the industry produces. As a quality food and beverage product needs critical ingredients, so too does the supply chain. To stay competitive, food and beverage companies need to provide quality products that appeal to the consumers\u2019 ever-changing preferences. Supply chains need to be strategically coordinated and tactically managed. Supply chain management is actually more like a philosophy and evolving thought process that is baked-in rather than simply a process.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Supply chains have become so complex that to succeed; <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/connected-supply-chain\" rel=\"noopener\"><span style=\"font-weight: 400;\">managing them needs to be collaborative and interactive<\/span><\/a><span style=\"font-weight: 400;\"> through the entire ecosystem, not just internally within a manufacturing organization. To accomplish this transformation from process to philosophy requires organizations to add three ingredients to the strategy of managing the supply chain.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collaboration<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investigation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Evaluation<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These three ingredients focus on information. To successfully manage your supply chain, knowledge is power. In today\u2019s ultra technology world, access to information is easier than ever before. However, at times there can be too much information with not enough time to dissect it all to make timely and wise decisions. That is where these three elements come into focus as true ingredients to keeping your supply chain agile and adaptable to disruption and changing market conditions.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Collaboration<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Communication is critical to keeping the supply chain moving, and again we mean the double-sided supply chain of product and information. Communication and collaboration does not just mean within the walls of the company or the organization. Today\u2019s market dictates total collaboration between trading partners and all organizations that have an impact or participation in your business. Suppliers, third party logistics suppliers, <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/10\/the-remedy-for-inefficiencies-in-contract-manufacturing\" rel=\"noopener\"><span style=\"font-weight: 400;\">contract manufacturers<\/span><\/a><span style=\"font-weight: 400;\">, trucking and shipping companies as well as the most obvious, your customers. How about the customers of your customers, the consumers? Why keep a secret? Every one of these entities has a significant impact on not only the performance of your supply chain but your business. Shouldn\u2019t you want to collaborate frequently with them all? Think about the data that can be gathered and more importantly, the information, decision-making capabilities that can come from that collaboration. Collaboration is the key to getting that knowledge and thus, gaining the power to build the adaptive supply chain.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Investigation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As previously mentioned, there is a great deal of data available today that can help companies manage their supply chains and collaborate both internally and externally with trading partners such as suppliers and customers. Investigation is the second ingredient needed to help the supply chain adapt to a disruptive market place. Investigation is an interesting word. Your data needs to be real, accurate, reliable and most importantly, current. There was an old phrase years ago about the news business: \u201cIf I have to wait till the end of the day for information, I might as well wait a lifetime\u201d. This can be applied to the food and beverage manufacturing industry as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Reliable, accurate and timely data will enable you to make smarter and quicker business decisions. Today\u2019s technology rich world gives us things like Industry 4.0, Internet of Things (IoT), Artificial Intelligence (AI) and EDI, some of which can be used at an organization\u2019s disposal to be able to access and relay information. This expert data will allow businesses to communicate and interact better than ever before to order ingredients, make products and ship them to where they need to go. To do this successfully, your data needs to be real as they say. Having the processes and systems in place to be able to quickly sort through and analyze all the data available to determine what information is critical and applicable for a given scenario will ultimately keep supply chains moving. Investigation is a key component.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Evaluation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We are experiencing <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/04\/data-is-the-new-gold\" rel=\"noopener\"><span style=\"font-weight: 400;\">unprecedented volumes of available data<\/span><\/a><span style=\"font-weight: 400;\">, more than can be realistically digested manually. All of us, in all walks of life are drinking from the proverbial data fire hose. Supply chain data in food and beverage manufacturing is no different. In business, the data challenges are greater; not all of the data is structured and a large amount is unstructured, not all of the data is relevant, and not all of the data is decision grade quality. Data is changing in real- time, and the volume keeps increasing. This expansive amount of data provides manufacturers an opportunity to learn from this data. Again, we said it over and over, knowledge is power. To make the best use of this data, Evaluation is the key component to ensure that the best information is available to make informed decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To effectively perform the Evaluation process, there are a number of technologies that can be employed to accomplish the task. Next generation supply chain analytics, IoT and AI pose an opportunity for organizations to transform their business model using <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/connected-supply-chain\" rel=\"noopener\"><span style=\"font-weight: 400;\">connected solutions<\/span><\/a><span style=\"font-weight: 400;\">. To achieve supply chain agility, you need the ability to detect, analyze and execute the best possible business decisions regardless of the sources of supply and demand. To reach this goal through the enterprise, you need end to end visibility. This requires accurate data and the right tools to evaluate that data. Speed and agility in evaluating data is as important as speed and agility in the actual supply chain.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Synchronizing Physical and Digital Supply Chains<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is difficult to make decisions without information. It is even more difficult to make good decisions without accurate and timely information. A common phrase in the industry when discussing supply chain dysfunction and missed opportunities is \u201ca day late and a dollar short\u201d. This implies that if you do not have the ability to make quick and accurate decisions, something will fail. Moving products through the supply chain can only happen if the physical and digital supply chains are synchronized and those managing them are informed and have the ability to collaborate with all parties, investigate opportunities and evaluate all possible supply chain decisions. This leads to an agile and nimble supply chain that can withstand the pressure of the day to day interruptions and make you more prepared to manage the real disruptions as they occur.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;9637&#8243; img_size=&#8221;full&#8221;][vc_column_text]Updated: April 4, 2024 Published: July 17, 2021 In today\u2019s competitive food and beverage marketplace, events occur and challenges arise that impact the normal course of business. Things like customers changing orders, ingredients and supplies coming in late or even a packing line randomly going down for a short period of time was [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":9637,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,2045],"tags":[304,292,705,2476,697,1752,142,324,1749,1751,1750,92,118],"class_list":["post-9636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-supply-chain-trends","tag-collaboration","tag-data","tag-digital-supply-chain","tag-digital-supply-chain-planning","tag-disruption","tag-evaluation","tag-food-and-beverage","tag-food-and-beverage-manufacturing","tag-food-and-beverage-supply-chain","tag-investigation","tag-physical-supply-chain","tag-supply-chain","tag-supply-chain-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Key Ingredients to a Synchronized Food and Beverage Supply Chain | QAD Blog<\/title>\n<meta name=\"description\" content=\"As quality products need critical ingredients, so too does the food and beverage supply chain. 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