Many organizations begin with small-scale warehousing and transportation activities and naturally handle their own supply chain. However, there comes a time when partnering with an outsourced supply chain provider makes sense. It could be a result of increased complexity, quick expansion in revenue, planning for future growth, or the introduction of additional distribution channels. Working with a 3PL expert can increase performance and help respond to market changes. In terms of efficiency the partnership provides, the benefits include lower costs, reduced inventory, shorter lead times, and greater resource utilization Longer-term efficacy improves customer service, market share, and revenue. Capital investment is frequently considered to be a barrier in developing an internal supply chain and its infrastructure. Perhaps it is more prudent to manage a greater portion of this function as a variable cost. According to a Deloitte survey, 79% of organizations with efficient supply chains outperform their competitors. Businesses with optimal supply chains also have 3x faster cash-to-cash cycles and 15% cheaper supply chain costs while storing 50% less inventory than those with sub-optimal supply chains. Supplementing the statistics here are a few key benefits that food brands can reap by outsourcing their supply chain to experts. Defined Processes Supply chain outsourcing organizations provide a variety of solutions for food brands to efficiently service their end customer. This includes inventory management and operational optimization of the entire supply chain. Supply chain experts can manage stock, invoices, deliveries, and refunds through well-defined processes. Organizations handling supply chain outsourcing are experts at measuring performance, determining which areas to prioritize and how to implement improvements most effectively while planning to grow the business. Clear controls will increase operational efficiency and help businesses prevent unanticipated expenses. Strategic Alliances A supply chain partner’s network is a crucial resource for moving finished products. Finding the right equipment, insurance, and other credentials might be difficult. However, supply chain partners filter their network to ensure only qualified service providers are included. They can also use their relationships to achieve total cost reduction and improve service. A 3PL provider’s network of partners enables businesses to expand their geographical presence by being able to manage inventory in a potential market without having to invest in vehicles, equipment, or staff. Along with a well-outlined route to market strategy investing in the services of a supply chain provider can save both time and money. Focus on core business activities With an outsourced supply chain taking care of the end-to-end fulfillment, businesses can concentrate on their core competencies to innovate, produce new ideas, products, and business offerings. Outsourcing the SCM to a reputable partner with extensive knowledge and experience can result in significant time and resource savings. This would make food brands more productive and assist their long-term success. Consequently, processes like marketing, customer relationships, and support are enhanced. As the business scales across the country, supply chain outsourcing experts can offer insight into how to expand their fulfilment strategy and optimize inventory, whether it can be executed through the addition of new fulfilment centres, or the expansion into new markets and sales channels. Advantage of knowledge and expertise It is difficult to predict and accommodate internal expertise in all the capacities and geographies required in today’s complex market environment. A 3PL partner will have expertise and experience in a variety of areas, including transportation and its paperwork, sourcing, compliances, and economic rules, to name a few. The supply chain expertise and know-how that a partner can provide to a business wanting to grow across the country can reduce costly delays, shorten the cycle time, and smooth the introduction into a new territory. Access to state-of-the-art infrastructure A significant benefit of partnering with a firm providing supply chain outsourcing is the ability to leverage its existing infrastructure. A 3PL provider will have a broad network of interconnected routes that enables them to maximize efficiency when transporting various clients’ things around the country. Additionally, they will have access to warehouses and distribution centers in strategic locations to facilitate fulfilment and delivery. When a supply chain provider is hired, they can harness this network to determine the most cost-effective methods of transporting your products or materials around the supply chain. If any obstacles or issues develop, they already have a good grasp on alternate routes and solutions that will meet the complex needs of a food brand. Meanwhile, without pre-existing infrastructure, the in-house supply chain would have to address these difficulties on the fly. Enable futuristic technology According to the 2018 Annual Third-Party Logistics (3PL) Study, businesses desire increased analysis to enable them to make more informed supply chain decisions. A technologically driven outsourced partner delivers expanded visibility, offering users more insight into relative data that impacts their operations. Businesses are able to aggregate data and improve their organization’s decision-making process. Futuristic technology like artificial intelligence, machine learning, and automation play a large role in increasing the processing and output capacities of the workforce along the supply chain. Regardless of the scale or industry, integrating automation into supply chain management can be extremely advantageous for operations such as order tracking, data analysis, transportation, and warehouse management. Automation enables businesses to make more informed decisions by lowering costs and eliminating errors along the value chain. Organizations can better allocate critical products and supplies while saving money, time, and resources with a technology-enabled supply chain. With numerous benefits associated with outsourcing to a 3PL provider, including cost savings, increased flexibility, access to a robust supply chain, and ultimately more time and energy to focus on business, it is a strategic investment food brands should consider if they intend to scale their business across the country.
The demand-driven supply chain, or demand-driven supply network, is a combination of technology and processes that detect and respond to real-time demand across a network of consumers, suppliers, and employees. This has been significantly enabled by the increased use of new technologies brought about by the Internet of Things (IoT). While traditional supply chain inventories and services are provided based on forecasted demand and historical sales patterns; in a demand-driven supply chain, the companies that comprise the supply chain collaborate to shape market demand by sharing and collaborating information, thereby avoiding time lags in information flow and avoiding the bullwhip effect across the supply chain. A demand-driven supply chain is one that is focused on the demand generated by consumer data and feeds this data to the supply base, hence increasing inventory availability through a demand-pull strategy. The DDSC planning process is driven by customer needs. It implements a tactic known as ‘demand-pull.’ This helps the market to work more effectively with other supply chain players by sharing new information. Below are five key anchors to a demand-driven supply chain: Anchor 1: Evolving Consumer Demand in India Today’s customer environment is more dynamic than ever before. Technology innovations driving substantial shifts in customer behavior challenge organizations across the food service industry. The supply chain of yesterday was linear, sequential, and static. It is now dynamic, multi-directional, and evolving. To achieve their goals, supply chain leaders must make decisions quickly enough to keep up with the market. In this continuously changing market, planning teams need to refocus their efforts on the unique demands of individual customers. Food trends are influencing traditional Indian cuisines. To appeal to health-conscious consumers, food manufacturers have altered their menus to include healthful options. Some restaurants now serve nutritious meals, plant-based meat, and organic food. Internet and smartphone usage will raise the demand for specialized foods. Web-based ordering and the usage of AI and IoT in order are altering the market. These advancements have revolutionized home delivery by bringing food to the consumer’s door faster. According to Research and Markets, the Indian online food delivery industry is expected to reach US$ 21.41 billion by 2026, up from US$ 4.66 billion in 2020. This changing landscape, along with forthcoming trends and India’s growth trajectory, is propelling the foodservices business forward. This growth rate is projected to continue, driven by consumers and foodservices businesses. By being able to quickly identify shifting consumer sentiments and how demand might respond, food brands can increase profitability, lead time, and margins. So, in this continuously changing industry, professionals can refocus their efforts on the unique demands of individual customers in order to scale across the country. Anchor 2: Decision-Driven Integrated Planning To compete in a rising market and maintain business processes, companies must connect their supply chain planning in an integrated manner from start to finish. Traditionally, organizations have relied solely on past data, limiting their ability to adapt to future disturbances. Finally, food manufacturers can manage their supply chains holistically, with real-time insight across the network. Integrated planning enables a dynamic, collaborative S&OP process to sense and drive demand. By utilizing the rolling forecasts feature within the value chain, food brands can predict demand two months in advance and can accordingly prepare and plan for it. Anticipating consumer desires, when they desire it, and where they desire it can be difficult for many firms. Gaining end-to-end visibility across the supply chain enables food brands to detect customer demand signals. To aid demand planners in planning more quickly, accurately, and precisely, predictive planning based on statistical functions might be beneficial. This is accomplished by analyzing historical data and forecasting future demand, providing the planner with a variety of statistical methodologies from which to pick. Anchor 3: Supplier Relationship Management More complex supply chains necessitate precise, measurable techniques to evaluate each provider. Supplier Relationship Management (SRM) helps determine how suppliers contribute to or detract from a company. SRM aims to increase efficiencies and value for all stakeholders. It identifies essential suppliers and lays the groundwork for buyer-supplier engagement. Finding suppliers who share the same goals as food brands might result in improved overall efficiency. Suppliers will better grasp business requirements with open and effective communication. This knowledge helps avoid supply chain delays and makes debugging difficulties easier. SRM aims to increase a company’s value and profitability. SRM can improve supply chain performance, reduce wholesale prices, and increase efficiencies. It can also assist reduce risk, improving administrative and onboarding efficiency. To compete in the marketplace, the entire supply chain operations process needs to focus on improvements that needs be measured by key performance indicators like SIFOT. Supplier in full and on time – SIFOT is fundamental in running a supply chain effectively. It allows food brands to gauge the performance of a supplier by understanding what percentage of their supplier deliveries are being delivered in full. Anchor 4: Enhanced Supply Chain Execution Supply chain execution is the daily implementation of the supply chain plan. It comprises managing inventory levels, taking orders, planning and executing work orders, picking and packing orders, and scheduling shipments. Execution may also include revising the strategy to address changing demand or a supply chain challenges. Efficient supply chain execution ensures order fulfilment and increases customer satisfaction. It also helps businesses gain a competitive advantage by attracting new customers and increasing revenue. Complexity increases when it comes to food brands and their challenges. A production strategy is developed in conjunction with supply chain execution but supply chain professionals must act quickly. To pull it off in a timely manner for order fulfilment, companies need to employ technology like warehouse management, transportation management, planning and forecasting, supplier management, order management, and more to help them make better decisions. Anchor 5: Supply Chain Visibility Supply and demand changes require companies to obtain visibility into this complicated network of customers, suppliers, and logistics providers. Enhanced supply chain visibility is critical in a demand-driven supply chain. Companies require visibility from the supplier dock to the customer door to know what is going on and...
One of the fastest-growing sectors in India and the world is the QSR sector. In the years 2021-2025, the Indian market for Quick Service Restaurants (QSR) is expected to develop at a CAGR of over 18%, according to a report by Research and Markets. Multiple causes, including urbanisation, food delivery service expansion, the rise of working professionals and millennials alike, and an increase in disposable income, are fuelling a boom in the fast-food industry. As a result, this is the most competitive restaurant-style due to the large a number of new entries and aspirations. The QSRs also face a variety of issues in their business. External factors like food inflation and agriculture reliance on the monsoon affect the business. Demonetisation also had a negative impact on the firm, resulting in lower revenues. The Indian market is very fragmented. Several local firms compete with larger international firms. This reduces system standardisation and increases dietary variability. So, the buyer demands more choice everywhere. The businesses sell the same cuisine at varying prices. This reduces client loyalty. Then there are internal business concerns like supply chain, logistics, and warehousing. Training of manpower is vital; it is a major concern due to the high attrition rate in this industry. Inefficient employees produce system inefficiencies. If the company is well-known, then this sector requires greater attention. The supply chain is critical to a QSR’s success. A better supply chain means more value for the company. But the QSR supply chain in India is highly fragmented which means there are many middlemen involved leading to wastage of resources. The supply chain is becoming increasingly important in today’s competitive QSR industry. To compete effectively, QSR brands try to establish formidable supply chains. Traceability Nowadays, many consumers demand traceability, wondering exactly where all products and ingredients come from. Having trustworthy data on food goods throughout the supply chain is crucial now more than ever. Every step of the food supply chain should be tracked and communicated to ensure quality, product integrity, brand integrity, and consumer loyalty. Lack of transparency and traceability in the supply chain can expose it to undue risk given the fact India witnesses nearly 5-15 % (About USD13 Bn in value) wastage in fruits and vegetables annually. It can harm a QSR brand’s reputation, resulting in lower sales and profits. It can also cause legal issues that delay product launches. Traditional monitoring mechanisms and human inspections are often to blame for food supply chain traceability. A communication breakdown occurs owing to errors and omissions. In the event of contamination, traceability may allow for targeted recalls. Transparency, traceability, and trust in the food industry have long proven difficult. The supply chain data can give producers, suppliers, distributors, retailers, and consumers with trustworthy product and ingredient origin information. Inventory visibility is improved and stock-outs are avoided, which is critical when giving limited-time promotions. Managers can take action if a QSR store uses too much of a limited ingredient. It also helps with internal shrink and inventory loss statistics. Temperature-Controlled Supply Chain Fresh, frozen food is becoming an essential menu item for many QSRs. Temperature changes can affect the shelf life, flavour, and sensory experience of refrigerated foods. With a well-constructed temperature-controlled supply chain, QSR businesses may improve their ability to maintain product quality and reduce losses. Through real-time monitoring and historical analytics of the cold supply chain, including crucial environmental factors for products, a temperature-controlled supply chain assists QSR companies in reducing spoiling costs. A well-maintained cold chain leads to enhanced product quality, safer delivery, and predictive maintenance. Having a well-designed temperature-controlled supply chain enables the QSR industry to quickly identify and address temperature and humidity issues in the cold chain—before they escalate into larger problems. By partnering with a third-party supply chain specialist who specializes in cold chain management, QSR brands can monitor and manage the cold supply chain more effectively in real-time, distribute products more safely and efficiently, improve delivery quality while decreasing costs, and increase customer satisfaction. Data-driven Forecasting With technological improvements enhancing the supply chain, QSRs can invest in solutions that bolster supply chain activities such as demand forecasting. A data-driven forecast generates demand predictions based on historical data, economic trends, and market analysis, allowing for more efficient inventory planning and the avoidance of losses. A data-driven demand estimate might mean the difference between profit and loss for a quick-service restaurant brand. Accurate forecasting that takes events, promotions, and other sales-related aspects into consideration is critical to avoiding losses, especially for QSRs that operate on razor-thin margins. With precise projections, operators at a quick-service restaurant (QSR) can generate data-driven predictive orders, which are critical for inventory management. An accurate forecasting system reduces capital retained on a restaurant shelf, improves bargaining positions with suppliers, allows for space reduction or reallocation inside a restaurant, and reduces waste. Supply chain professionals with excellent technological skills can help QSRs by predicting labour, ordering, and production needs. This estimate is based on POS transaction data and a complex algorithm that considers seasonality, events, promotions, and other factors. With new technologies, operators can adjust projections to account for both positive and negative consequences, such as increased sales activity due to neighbouring sports events, boosting forecast accuracy. Inventory Management Technological advances in inventory management systems provide better food tracking. With efficient inventory management, QSR businesses may improve food safety and reduce health hazards. Accelerate the placing of food products on shelves, ensuring that they are still fresh for customers, and optimise transit and packing methods to save money. Inventory management systems can also connect to the QSR supply chain for real-time product information. In the event of a problem, they may track specific shipments. A large amount of data is being shared, which can shed light on safety, delivery, and overstock concerns. Finding the correct inventory management technology can also assist QSR brands in more successfully balancing their supply. If they have a surplus of inventory, they run the danger of it going bad and being thrown away. However, if...
Supply chain sustainability has been building up steam in recent years, as consumers are becoming more environmentally conscious and are expecting businesses to do the same. A growing number of companies are looking to build sustainability into their supply chain operations as it has direct impact on the environment as they try to compete with a growing consumer base. It is widely established that sustainable business can equate to profitable business. So, how can a sustainable supply chain benefit your business? Reputation Ensuring that companies focus on the planet along with their profits makes good business sense and enhances their reputation as a sustainable company. Profitability Thinking sustainably will help drive down costs and reduce expenditure in the long run, which will further help towards increasing the profitability of the firm. Innovation Establishing a sustainable supply chain enables companies to work with partners who provide environmental friendly products and services that foster innovation. There is no quick and easy path to sustainability, but the right solutions can help achieve a defined sustainable supply chain. Companies tend to account for waste and activity at every stage as part of their overhead. Therefore, having a comprehensive understanding of how sustainability impacts every unit of business including the supply chain is essential. An early step is to evaluate inventory suppliers, identify the most significant environmental and social challenges and then to prioritize efforts. Establishing and communicating expectations through a code of conduct is a critical step in involving every unit in the sustainability efforts. Simplifying procedures and eliminating wasteful practices contributes substantially in improving supply chain efficiency and reducing waste. It is important to focus on small, iterative improvements along with major changes to bring simplicity in the processes. Every change that reduces waste, speeds up delivery or enhances quality makes an incremental improvement to sustainability. Misalignment between supply and demand results in too much or too little production of raw materials, manufacturing of goods and distribution of products. This creates rework and excessive inventory which is a massive source of waste. Lead times are one of the greatest areas of waste within a company that should be controlled through process improvement. Good predictive analytics combined with machine learning can forecast likely demand and ensure more efficient supply and manufacturing processes. The warehouse is an important component of efficient sustainable supply chains. When it comes to creating sustainable value, there are several practices that warehouses can implement such as automating both warehouse solutions and management processes, increasing energy efficiency within a warehouse, and optimizing warehouse design. Some practices like smartly located inventory which can bolster efficiency and productivity or use of electric forklifts which eliminate the need for gas and oil in warehouse operations can revolutionize the way how companies adopt green approach to procurement and warehouse management. Route optimization as well as using renewable fuels considerably helps to reduce the environmental impact of transportation and distribution. Artificial intelligence can work with GPS devices to optimize shipping routes. Advanced analytics can even help update routes in real time, to take account of congestion and other issues. Through our expertise, we, at Radhakrishna Foodland have helped a leading QSR chain to tackle the problem of disposing off used cooking oil by converting it into biodiesel and used it in vehicles for transportation to stores. This helped the QSR chain to reduce misuse of used cooking oil as well as air pollution during transportation. The environment friendly solution added credibility to the brand and enhanced its brand image.
Companies and supply chain partners can create a highly competitive environment, by working closely together. The selection of the right partner is crucial as changing providers are cumbersome, costly and requires significant effort and can lead to costly inefficiencies. But how does one identify that the SCM partners are capable of such collaborations and possess the horsepower needed to push the organization forward? The choice is routinely based on factors such as cost, volume, and location, but assessing supply chain partnership performance is gaining strategic importance. 1. How is the operational performance of the SCM partner? SCM partners must have proper demand, sourcing and procurement, production, and logistics process management. Supply chain partners must be evaluated on the supply chain KPIs. “On time In Full (OTIF)” deliveries help to measure the efficiency and accuracy of delivery or logistics in the supply chain. It facilitates better collaboration with customers, ensures reliability of delivery and gain customer loyalty. The “Order fill rates” determines how one is managing the inventory levels efficiently to avoid stock-outs. Line item fill rates (LIFR) and inventory days are other essential indicators of how well the business can meet customer demands. 2. How is their technological competence? Higher technical Competence is crucial while looking for right SCM partners for continuous improvements, network optimization, demand and supply efficiency, flow of information, visibility, and data-driven analysis. For instance, a leading retailer adopted high-tech consolidation centers that utilized automated technology to enable increased volume and improve on-time-in-full delivery performance. With world-class logistic technology, the facility plans to be the most efficient consolidation center in the retailer’s supply chain. Partnering with Supply chain players with concrete IT infrastructure enables companies to gain an edge in the market and increase performance efficiency. 3. Do they provide integrated end-to-end services? An integrated framework is essential to tie the whole network together to reduce perennial supply chain challenges such as functional silos, poor transparency of knowledge and information and the inadequate formation of relationships. Supply chain partners providing Integrated services creates value through end-to-end supply chain solutions rather than a collection of functions which operate separately. 4. Do they foster innovation? Like all parts of business, new technologies, new processes, and new ways of thinking will make SCM partners stronger, more efficient, and more powerful. When supply chain partners are attuned in this way, they are much more effective at discovering and applying innovations that enhance competitiveness. The right supply chain partner must breed innovation right from streamlining processes, identifying new opportunities, and creating better ways to accomplish tasks for better partnerships. An e-commerce giant announced that the company was developing a drone-based delivery system that would be delivering products in locations within 10 miles of its distribution centers within just 30 minutes or less and would self-destruct during flight, if required, to keep people safe. The firm is doing everything possible to leverage latest supply chain innovations to maintain its place as the clear market leader. 5. How strong is their learning dimension? It is essential to choose supply chain partners who are adaptable and compatible in every aspect of business. Exploration, assimilation, and learning will assure a smooth functioning supply chain. Selecting partners with the ability and willingness to learn, and who want to create synergies will have a positive impact on performance measures and being a more market‐focused supply chain. 6. What are their organization values, culture, and strategies? How compatible the two organizations are in terms of fair dealing norms such as transparency in sharing production and scheduling data, flexibility, mutuality, or openness, can definitively help working relationships to endure. It helps to tightly align with the business strategy, making decisions that will accelerate growth and performance. It is essential that SCM partners understand the values, cultures, and strategies of companies for long term relationships. With over 30 years of experience, we at Radhakrishna Foodland possess a range of procurement and supply chain solutions to help enterprises in achieving their business objectives. Through our end-to-end supply chain services, we help companies to optimize their core expertise associated with the development of the products and create value for themselves, their vendors, and their end customers. Our Integrated Information Systems provide customized and design specific requirements to our customers and cater to every retail needs. We constantly innovate our solutions for better adapting to the ever-changing ecosystem we operate in and enhance customer satisfaction. Our data driven, software-based demand planning, forecasting and order management solutions offer a standardized platform to centrally consolidate all supply chain operations. Our results and solution-based attitude empowers our customers to swiftly improve their top & bottom line and establish a footprint in high consumption locations in India.
A powerful supply chain management has integral factors that work towards proper planning, execution & implementation of the end-to-end supply chain. Since inventory makes an integral part of this supply chain, it is of utmost importance to onboard a strong inventory system with the warehouse management company for convenient & reliable fulfilment of the process. What Is a Warehouse Management System? Inventory management & distribution hold significant importance in the supply chain & logistics industry. It works like a backbone of the end-to-end supply chain and holds higher value with complete integration of the whole system. It manages several aspects of the supply chain at a time like storage, inventory management, distribution along with complete auditing of stock & inventory availability. It takes care of the complete inventory management, its data alongside keeping up with all its parameters, SKU, pallets, etc. As a reliable, transparent & robust facility that ensures utmost safety of the inventory; a strong system by an expert warehouse management company helps with innumerable benefits to the business. Several warehouse management companies in India work on principles that assure product placement & proper stock availability. Warehouse management compliments business in many ways and promotes smooth operations in all aspects. Poor warehouse management can lead to product displacement costing loss along with the unavailability of stock when needed & an interrupted business flow. A warehouse management company with expertise in the field already know about the dynamics and can assure systematic end-to-end fulfilment in all aspects. There are several ways a warehouse management system improves the integration of your supply chain process, Inventory is beyond a doubt, one of the most significant parts of the business. Hence, it requires a systematic approach to manage the inventory in a way that it reaps profits in all aspects. Inventory needs to be stored before distribution & end-to-end fulfilment in the supply chain management hence, joining hands with a warehouse management company to integrate the supply chain & logistics with strong warehouse management will absolutely work with systematic inventory management in all aspects. Similar to inventory management, inventory requires time to time maintenance in order to maintain the smooth functioning of the business. The warehouse management system will assure the performance of the unit, analyze the inventory, and make the process of keeping the track swift, efficient, easy & convenient. Inventory maintenance as a part of the warehouse management system makes it convenient for all the stakeholders to understand & learn the exact position of stock inventory, and other essential details. Customer satisfaction is the ultimate goal; any management system works with the aim of achieving it at the forefront. The warehouse management system ensures customer satisfaction as it also ensures the quality, security & end-to-end fulfilment of the integrated supply chain logistics. A supply chain management system seeks precision and smart strategies to fulfil the integration. Learning about the experience from the end party and keeping track of the shipment paths along with real-time monitoring ensures complete fulfilment of the chain, assuring client satisfaction in the most profound way. A systematic warehouse management process that ensures optimum integration & smart inventory maintenance & an organized approach ensures negligible loss costing less or no amount of money. It also improves the impression, making the business look reliable & trustworthy in the market, in turn inviting more business opportunities and more profits to yield. A systematic approach that simplifies the process, assures customer satisfaction with transparency & reliability directly impacts the return on investment in a positive way. Inventories are an integral part of the business, hence the primary purpose of onboarding a warehouse management company is to manage risk. A systematic approach of warehouse & inventory management will work on factors involved in the end-to-end fulfilment of the supply chain & eliminate the factors causing risk. It also assures the mitigation of loss in case of uncertainty and manages the real-time information to reduce the factor of risks enormously. A warehouse management system takes care of the inventory & the end-to-end fulfilment of the supply chain in the best way possible. It manages the integration of all the systems involved, keeps the processes organized and maintains utmost transparency for easy reading of the data, stats & working of the supply chain. It makes all the information available to every party involved for a better understanding, and to learn the operations in a more efficient manner. As much as it is important to integrate a warehouse management system, it is also significant to join hands with the right warehouse management company in India for better & desired results. It helps you keep the data associated with the supply chain management upfront & transparent and boosts the growth of the business in various possible ways. RK Foodland, the leading cold chain, supply chain & warehouse management company in India complies with all the industry standards & ensures a prominent fulfilment of the end-to-end supply chain management. If you are looking for a warehouse management company to help you with the smooth functioning of your business and improve the integration of supply chain management, RK Foodland can assist you with best practices in all possible ways.
India is now the world’s third-largest startup environment, after the US and China, and development shows no signs of slowing. According to ResearchAndMarkets, the Indian foodtech sector will develop at a CAGR of 39% from 2021 to 2025, reaching INR 1,868.19 Bn. Growing consumer demand for an intriguing new food product necessitates increased production volume. Adding people and equipment to the operations and supply chain can help meet the rising demand. While sales volume increases, supply chain costs increase proportionately. A supply chain architecture that requires constant resource expansion to keep up with sales growth is unsustainable in nature. A scalable supply chain’s objective is to grow capacity while maintaining or improving efficiency, hence lowering supply chain costs per unit. We have outlined a few ideas for young food brands to build a scalable supply chain. We know from our extensive industry experience that not every entrepreneur wants to grow their business beyond a certain size or reach initially. Supply chain consolidation requires short-term sacrifices to scale the organization. If growth is a priority for the organization, it must commit to scaling, establish a reasonable growth objective, and develop a strategy and action plan to accomplish it. Standardize and automate processes While a startup must be agile and innovative, consistent processes help it scale. Standardized processes facilitate automation. Hands-on approaches and manual processes are difficult to scale without extra manpower and infrastructural resources. Standardization is the foundation of a robust supply chain management. Standardization specifies the manner in which a task or group of tasks should be completed. Every task needs scope, quality, and technique standards. For a competitive advantage, these rules can recognize and capture supply chain data using the appropriate tools or technology. With standardization, a part or process may be developed and measured more efficiently, resulting in a more sustainable supply chain that benefits all entrepreneurs. It saves time and money by keeping everyone on the same page. Automating back-office and operational procedures inside the supply chain is critical to cutting costs, speeding up time-to-market, and fostering innovation. A more technology approach will improve supply chain management, safety, and efficiency. Automating the back office reduces human error and streamlines processes. Modernizing the back office and automating will help reduce stress on people and processes. Outsourcing Given the necessity of these procedures, most companies concentrate on product development, fundraising, marketing, and sales. The lack of in-house logistics professionals creates a vacuum and a risk for startups. 74% of logistics leaders anticipate boosting logistics outsourcing spending in the next two years, according to Gartner Inc. A supply chain specialist may assist in filling that gap and acting as an extension of their team, providing the organization with a competitive edge. Outsourcing fulfilment to a 3PL saves initial capital. A startup usually manages fulfilment first to learn about the process and how to optimize it. From the start, a business must be hands-on, from packaging to returns. As the business expands and orders increase, outsourcing fulfilment may be more cost-effective and time-efficient. A supply chain specialist can help startups save money on warehouse space and personnel, source raw materials, move processed foods while maintaining product integrity, and most significantly, can guide startups with their expertise in the Domain. Expansion All food startups want to grow their business in a way that is sustainable. A Supply Chain Specialist can help a food startup scale by allowing for business and operational flexibility. Their fulfillment centers allow food entrepreneurs to expand without having to manage and operate their own facilities. A supply chain specialist’s national fulfilment network can also be leveraged to deliver orders as food startups develop new products and versions. A well-defined network allows start-ups to reach remote and potential markets faster. In addition to finding new sales channels, and an established Supply Chain Specialist may help organizations reach a larger consumer base. They can also help a food business better deal with seasonal demand while continually ensuring that the brand’s final product is transported to market in a temperature-controlled environment. A supply chain professional is better positioned to address any issues that arise during the transportation of the finished product. Collaborative Approach At the start of a food brand’s growth journey, often they struggle with their volumes due to variations in demand, which can be a cause of concern for them. Transporting low volumes of finished goods through a dedicated carrier can be expensive for a startup. Hence, it is advised for startups to opt for a more collaborative approach, where they can share their resources through supply chain specialists enabling them to transport variable volumes of products to different markets according to their demand. A collaborative approach will also give the food startups information about how a specific market is reacting to a product produced by another food brand, helping them string a better strategy for that specific market. A collaborative approach can save organizations 5-10% on costs and increase revenue by 7-10%, according to a report by McKinsey’s. Collaboration helps food brands to harness the collective intelligence of numerous stakeholders in order to plan and meet consumer demands. This primarily entails the sharing of real-time demand information among supply chain partners. Supply Chain as a Service (SCaaS) Investing in the Supply chain as a service module benefits startups by providing them with technology-driven, end-to-end supply chain management solutions. The SCaaS module is expected to grow at a 7.5% CAGR from 2018 to 2025, led by the expansion of mobile devices and internet penetration in emerging markets. This highly adaptable supply chain approach leverages a SCaaS provider’s experience and skills to assume responsibilities for production management, manufacturing, warehousing, inventory tracking, order fulfilment, and transportation. Finally, SCaaS provides the infrastructure and technology necessary to reduce the total value chain costs by offering customizable fulfilment solutions and adopting technology and automation to increase speed, visibility, and accuracy throughout a whole supply chain network. Around half of startups fail during the first five years of business, according to some estimates. There are numerous reasons for a startup to fail, but the majority of the time it boils down to...
The increased popularity of plant-based foods has created new supply chain problems, particularly given that many of these organic products are being introduced by traditionally non-organic merchants. Organic supply chains and produce suppliers have long followed regulations regarding produce handling, such as temperature controls, cargo tracking, and supply and demand planning software, to ensure that the product could be tracked from farm to table and, in the event of a recall, traced back to its source. However, for meat replacements that incorporate numerous plant-based ingredients, supply chain organizations that handle these products face unique food safety problems. The food industry is now debating how to store and handle meat alternatives, how to manage each ingredient in the product, and, most crucially, how to determine temperature controls or the source of infection. The popularity of plant-based food is further strengthened by a new analysis from The Good Food Institute stating that plant-based meat alternatives might account for 6% of worldwide meat consumption by 2030. Producing 25 million tons of product per year would be required in such a scenario. With its growing stature in the food industry, brands from the plant-based food segments would want to string together a supply chain for their mock meat offerings. As supply chain specialists, catering to the food industry for three decades, we suggest considering the below-mentioned few points that might help with outlining a supply chain for plant-based meats. Infrastructure From a high level, the meat alternative supply chain is shorter and much more compact than the meat supply chain. Combine that with the fact that plant-based meat alternatives can get to the market a lot faster than traditional meat. The labor factor can make a big difference. Saying that producing PBM requires the process called high-moisture extrusion, which means the infrastructure to process it requires to handle the processing at different temperatures. This means the infrastructure not only needs to be technologically equipped but also requires a skilled workforce to see through the intricate processes. The plant-based meat brands require temperature-sensitive storage that is close to their potential markets due to its low shelf life making the process of production and delivery faster. It is advised for upcoming plant-based meat brands to impanel with a supply chain specialist for their temperature-sensitive storage needs since they are well-equipped to handle products with low shelf life and temperature-controlled needs. With a specialist handling the supply chain for the plant-based meat brands, their well-defined routes to market and strategic presence can be leveraged as well. Workforce According to a recent Deloitte research, when asked about the skills that supply chain employees including those in the plant-based meat segment should possess, 73% of respondents say technical competence is extremely or very critical, and even more, 79% believe leadership and professional competencies are extremely important. The technological capabilities required now are those that enable supply chain experts to address complicated risk management or statistical modeling issues that might arise in a complex and evolving plant-based meat sector. Talent development is another area that needs focus since the plant-based segment is at a nascent stage, the resources employed within the industry will require to be educated about the segment and the processes. The bottom line is that when it comes to a niche category like plant-based meat, the workforce needs to be both technologically equipped to understand the processes that are defined and specific to the industry while adhering to compliance and being able to take quick action in case a tough situation arises. Central Information system A centralized system can be affordable and adaptable, allowing plant-based meat brands to respond to market changes at a faster pace. Brands in this segment that use a centralized system might soon become leaner and more efficient. A consolidated information system ensures supply chain visibility giving decision-makers precise supply chain visibility. This would make it easier for plant-based meat manufacturers to identify which ingredients originated from which farms and would enable them to act promptly if an ingredient went bad prior to processing. Through the use of technology such as barcode tags and RFID cards, it would also be easier to separate poor batches of components from good batches, so avoiding a crisis situation at the start of the supply chain cycle. Product and supplier management Supplier relationship management (SRM) enables the plant-based meat business to take a systematic approach to evaluate suppliers’ contribution and influence on success, identifying strategies to improve their performance, and building a strategic approach to carry out what has been found. Supplier lifecycle management (SLM) should also be implemented in the supply chain to enable an end-to-end strategy to manage high-value or strategically significant suppliers, from selection to relationship closure. The critical element of the process is to recognize the value suppliers may provide and to integrate those benefits into procurement processes. By implementing such methods, plant-based meat brands can mitigate risk, boost efficiency, reduce price volatility, and consolidate their supply chains. The unified information system enables fake meat companies to locate suppliers that may assist them in reducing delays, resolving issues of unavailability, and enhancing transparency and traceability. Temperature-controlled environment The supply chain’s difficulty becomes even more formidable when resources and products demand temperature control, as is the situation with plant-based meats. Because the shelf life of such products is frequently limited, the speed and dependability of the transportation and handling systems become even more critical. As consumers turn toward plant-based foods, product oxidation becomes an issue that brands within this segment face. As a product, plant-based meat is a refrigerated item that is susceptible to light oxidation, thus reducing its shelf life and quality. Delivering the texture and flavor consumers demand can be extremely challenging if the product is not properly protected from oxidation during the storage and transportation phase. To ensure product integrity across the value chain, different temperature regimes must be addressed independently in terms of storage, staging, and distribution. Additionally, the items must be continuously inspected and maintained – using proper monitoring and tracking systems. Due to the significant risk of non-conformance at handover...
The improvisation of technology and software have enormously encouraged the integration of cold chain logistics & end-to-end fulfilment making the process safe, efficient and convenient. Integration in Cold Chain Logistics Cold chain logistics deals with the integration of an end-to-end system that deals with the management of temperature-controlled products across distances maintaining the quality for a better experience. The cold chain logistics haggle with manufacturers, processors, distributors, & foodservice retailers to lessen their end-to-end obligation along with reducing overall operational costs. As an essential part of management, having integrated cold chain logistics yields benefits for the business in ample ways. This integrated fulfilment reduces risk, improves customer satisfaction along with making strong relationships with suppliers & clients. There are a number of things that need to be handled keenly while building integrated cold chain logistics. Since end-to-end fulfilment is a complex process, the food industry highly relies on the cold chain companies in India assisting with outsourcing cold chain management. Outsourcing cold chain management being the finest resort, it helps efficiently with managed end-to-end fulfilment, visibility and reduction in waste, and improved margins. Building an integrated cold chain logistics system to aid your food business and give an edge over competitors is a worthy chase. However, it involves strategic planning and expertise in the field for better integration. Importance of Building an Integrated Cold Chain Logistics System Building a strong cold chain logistics benefits your business in various ways and helps you multiply your margins. Many cold supply chain companies in India render services for strong cold chain management. These logistics companies in India encourage smooth functioning of the food companies maintaining the perfect equilibrium between demand and supply of the market. It helps your business eliminate food safety issues and shifts the load on the company offering end-to-end fulfilment. The shifting of load on other dedicated teams allows you opportunities to multiply the margins and focus on improving the services for your customers. A strong integrated cold chain logistics helps you with enriching the shelf life of your products. Building a cold chain management system also improves efficiency and productivity. A strategically planned system for cold chain logistics and management also eliminates the risk of quality deterioration, benefiting you with smart management of the inventory. A strong cold chain management system helps with increased reach and penetration. It allows you to explore the markets where reaching looks like a difficult chase. A smart placing of cold chain logistics can help you with good exposure to different markets. It also helps you maintain order accuracy. Since keeping track becomes easier with a dedicated team to look after the cold chain management, it reduces the risks of missing or displacing orders. It also regulates delivery and maintains a balance between all the demand and supply promoting smooth functioning of the business. Integration of Cold Chain Logistics for End-To-End Fulfilment Integration of temperature-controlled logistics in India has led to smart development in the field of cold chain management. Apart from the benefits of having strong cold chain management, it promotes the smooth functioning of your food business and maintains a flow eliminating uncertainties and discrepancies. Joining hands with industry experts offering top-notch services always reaps great results. Integration of cold chain logistics provides cost-effective and efficient services with respect to the value. This sustainable way of management allows a flexible flow of your business. The technical development in the software and management structures have made the system absolutely reliable and relevant for food services business and industry. Highly relevant for frozen food products, medical types of equipment, heat-sensitive drugs & frozen desserts; cold chain management assures the quality of a product without degrading or degradation throughout the journey as end-to-end fulfilment. Looking forward to an integrated end-to-end fulfilment with strong cold chain management?
Cold chain logistics companies provide distribution and storage services for products that are temperature sensitive. At present, India is the largest producer of milk in the world and is second when it comes to growing fruits and vegetables. India also produces marine, meat and poultry products. The Indian cold chain industry was valued at INR 1425.49 billion in 2020. It is expected that this market will grow at a CAGR rate of 14.6% during the 2021-2026 period.