Food and Beverage Suppliers faces a competitive landscape as sales of both raw and prepared foods to rise, especially as other industries begin to specialize in health and nutrition. In response, these beverage companies have developed many marketing programs to reach out to the customer. One strategy is to associate their brands with popular television shows or movies, which often draw attention away from the company brand. Another strategy for boosting sales is offering deals on their products to customers who sign up for mailing lists.
Packaging and delivery times are another challenge that food and beverage suppliers have faced. Packaging supplies such as plastic bags and boxes, Styrofoam and polystyrene are costly and take a long time to manufacture. While it is possible to purchase these materials in bulk and store them until they are needed again, in many cases there is no way to guarantee that the goods will arrive on time. Addressing these issues through proper supply chain practices, improving distribution, and working with a supplier who can meet short or long term delivery times is essential to keeping beverage costs down and maintaining a strong relationship with their customers.
As business owners, food and beverage industry owners must be aware of the supply chain management principles that are essential for maximizing performance. Good food and beverage supply chain management principles include establishing a logistical plan, monitoring and ensuring appropriate levels of productivity, and providing quality products and services. When a company’s logistical system is not operating at peak efficiency, one of the biggest obstacles to success is the company’s inability to increase profits. Improving the supply chain management system and addressing operational issues will lead to increased profits, increased customer satisfaction, and improved profitability.
Food and Beverage Suppliers will also benefit from improved logistics if they adopt supply chain strategies that focus on labor management. Labor costs are one of the largest components of overall manufacturing costs. Improved logistics allows beverage companies to reduce the cost of labor, which allows them to pass on price savings to consumers. In addition to reducing labor costs through better logistics, companies can also improve staffing, delivery, and returns by implementing a greater degree of direct labor management.
Another way that food and beverage companies can improve the logistical operations that support their operations is by developing and implementing a Supply Chain Scorecarding Measurement System (SCMS). SCMS is a system that measures logistics processes and provides feedback on efficiency and effectiveness. A scorecard will allow a company to compare their current processes with those required by the competition. Furthermore, a scorecard will allow a company to determine whether their current SCM strategy is achieving their desired results.
Food and Beverage Suppliers needs to continue to evaluate their supply chain initiatives to determine whether they are effective and if they are achieving the results that they are looking for. In addition to evaluating internal processes, food and beverage executives should also evaluate external factors such as government support, competition, and supply chain maturation. By following up on supply chain initiatives, food and beverage executives can ensure that their companies remain a competitive force in the marketplace. Moreover, they can help their organizations achieve their business objectives and improve profitability.