With the advent of 2022, we are all gearing up for changes, as individuals and as organizations. Reformed environmental standards for all industries, COVID-19 management, and the rise of enhanced technologies capable of bolstering supply chains are among the few revolutions we can expect.While many food supply chain experts are contemplating what they want to bring to the new year and what they’re ready to leave behind, here are ten resolutions to assist food brands in developing the supply chains of the future. 1. Plan and Play Smart The pandemic showed us the fragility of the supply chains. Food brands reinvented their business models and went online to serve their customers. They had to find a way that required to address the fluctuations in demand and supply. Supply chains need real-time visibility to plan scenarios, optimize inventories, be pro-active to change and to make decisions. 55.73% of supply chain professionals are willing to invest in production planning and demand forecasting according to research by finance online in 2021. Integrated Demand Planning ensures real-time supply chain planning from sales and operations planning to forecast, demand response. 2. Invest in Employee Safety Workplace health and safety policies help firms grow by retaining productive and qualified employees. It also provides a contingency plan for workforce assurance that can otherwise cause supply chain disruptions. Every organization must prioritize its people in order to maintain consistent growth. According to data provided by the Occupational Safety and Health Administration, employers who establish employee safety programs are able to reduce costs related to injury and workplace illness costs by 20 to 40 percent. The key to ensuring worker safety is to minimize hazards and providing an environment that places high importance to healthy practices and enabling employees to easily avail medical facilities. 3. Gain visibility to strengthen the value chain According to a survey covered by finance online, 40.02% of supply chain professionals want to invest in real-time supply chain visibility. Having visibility across the entire supply chain helps businesses to understand and convey information seamlessly both internally and externally. To achieve 360-degree real-time visibility, extended communication and collaboration network between departments, third-party providers and manufacturers can help firms improve process transparency, make quick decisions, and increase customer satisfaction. Collaboration is the key to strengthen supply chain visibility. 4. Contribute towards a sustainable world Businesses have acknowledged the value of environmentally friendly ecosystems. This means designing biodegradable products and packaging, sourcing resources responsibly from social and humanitarian groups, ensuring minimal waste and environmental impact, reducing mileage, emissions, and carbon footprint through logistics along with operating assets and equipment in an environmentally and worker-friendly manner. Sustainability necessitates cross-partner collaboration and strong visibility. To keep up with the changes, firms need a sustainable partner that can collaborate in building this ecosystem across the supply chain. 5. Introduce automation to the supply chain The food supply chain generates a lot of data that can be used to improve operations and the customer experience. AI is designed to handle complicated processes quickly, such as inventory and route. With AI projecting future demand, food brands can better match demand with capacity, lowering the cost of shortages and overages. Machine Learning can improve demand planning by increasing forecast accuracy. This will help Food brands optimize inventories and minimize safety stock, increasing cash flow.
As a continuation of our earlier article, we are sharing the last five resolutions guide food brands in stringing together strategy to create the supply chain of the future. 6. Evaluate your strengths and weaknesses The supply chain is only as strong as its weakest link. Identifying areas for improvement can be challenging, without access to precise real-time and historical data. By implementing automated, supply chain solutions, businesses can achieve granular visibility. That would mean segmenting the supply chain to extract and analyze accurate data from various segments within the supply chain like warehousing or transportation to identify its pain points that need addressing. Evaluation as a process helps to strengthen the end-to-end fulfillment strategy while saving businesses time and money. 7. Simplify the supply chain design A convoluted supply chain can mean that there are more potential for things to go wrong. Food brands with diverse suppliers and processes runs the danger of losing focus causing delays in sourcing, manufacturing, and transportation. Supply chain complexity is one of the major issues firms confront, according to Michigan State University research. Operating in various consumer markets involves numerous suppliers, which means more workflows, regulatory requirements, and vulnerable links. Supply chains can easily become entangled and convoluted, undermining efficiency. Businesses should analyze the entire supply chain to see where it may be simplified. Simplifying procedures can lead to cost savings, increased efficiency, and higher product quality. A lean supply chain is better prepared to deal with unexpected challenges. Its processes frequently improve overall performance, quality, reduces expenses, and increases responsiveness. A high-level audit of operations will reveal areas for improvement, resulting in shorter lead times and lower prices. Technology can help firms manage supply chain issues and streamline operations. Combining these factors can lead to happier consumers, which is the goal of every food brand. 8. Increase Transparency to save costs Transparency extends beyond supply chain visibility, as confirmed by a Harvard Business Review report that reveals cost reductions of up to 20%. To better understand supply chain participants and threats, organizations can now use internal and external data sources. Mobile technology can track compliance or employment data instead of on-site or third-party audits. Additionally, they can track supplies from their point of origin to the producer, and then the finished products from the manufacturer to the end consumer, assisting in the confirmation of quality and preventing fraud. While transparency can educate and engage clients it can also be used to reveal potential operational changes, promote good corporate responsibility, strengthen brands, and mitigate future events. 9. Transform digitally Supplier technology helps food brands build a future-ready supply chain while boosting accuracy, compliance, and visibility. Analytics can help organizations identify market patterns and forecast future demand. Business risks can also be addressed to ensure business continuity and provide end-to-end visibility. According to Forbes, 50% of organizations feel technology has a significant impact on supply chain, logistics, and transportation operations. Digital supply chains rely on ubiquitous data access. They can boost dependability, agility, and efficiency by facilitating cross-platform cooperation and communication. Traditional supply chains must adapt to new digital realities or risk being left behind. A digital operational model incorporates digital capabilities across governance, processes, data management, and IT that enables process integration and standardization. 10. Consider working with a specialist Before assembling a team to fill in the gaps, it is critical to understand the supply chain constraints. Consultants help negotiate the existing supply chain network’s uncertainty. They can help with supply chain technology, 3PL and 4PL outsourcing, warehouse and transportation management, network analysis, Lean distribution, and more. Food brands should consider collaborating with a supply chain specialist who can build a fit-to-purpose business strategy to reduce total value chain costs while improving the performance of the supply chain and manufacturing and distribution costs. According to a report by the UK-based market research firm Technavio, the 3PL market in India is poised to grow by US$10.74 billion in the period 2021-2025, progressing at a compound annual growth rate (CAGR) of almost 8%. Because supply chains are so complicated and unique to each business, consultants can assist uncover gaps between business strategy and supply chain design. A consultant can help traverse the stages and provide guidance to ensure the successful implementation of a supply chain relationship. As we transition into the new year we can together look forward to the challenges and changes the new year brings by embracing these 10 resolutions offered to help supply chains prepare for a productive and efficient year.
There has been a radical shift in the way the Fast Moving Consumer Goods (FMCG), Quick Serve Restaurants (QSR), and the Food and Beverages (F&B) industries operate to meet the growing needs of today’s consumers. B2B food trends like the growth of QSRs, the need for centralized kitchens for large enterprises, and increasing demand for cold chains are high capital-intensive markets that open up new investment opportunities. There is a rise in stringent hygiene policies, and automation of manufacturing and packaging among food businesses. Also, with a rise in internet access and new-age apps, customers are better informed than ever, demanding transparency in the food supply chain. Optimizing the supply chain ensures overall benefits for the food manufacturers and helps them thrive in fierce competition. And one of the best ways to optimize is to outsource the task of managing the supply chain to a third-party logistics provider (3PL). Here we explore why food businesses must adopt an outsourced SCM and how it can benefit them in the long run. The need for a dynamic Supply chain in the Food industries Unlike other industries, QSR, FMCG, and F&B industries require a very dynamic supply chain. It is due to multiple factors, including a diverse range of products, their varying shelf lives, and storage conditions like temperature and humidity, changes in consumer demands, seasonal availability of raw materials, packaging, law, and order, etc. These food-related industries must ensure an agile supply chain to balance the supply and demand of finished products and expand their presence across different geographies. Currently, the two main categories of supply chain management are either insourced or outsourced methods. While insourced SCM carries out all the operations of the supply chain activities using an in-house team, the outsourced SCM hires a third-party workforce to undertake the end-to-end supply chain activities. Before zeroing in on the SCM category, food products manufacturers and QSRs must thoroughly study their existing supply chain system and identify the gaps and goals to be reached. What are the challenges in insourcing? Though insourcing SCM can have its own benefits, some major pitfalls cannot be ignored. Some of them are shared below. High Cost Recruiting dedicated full-time employees for various roles could incur exorbitant costs. The company must cover the expenses for the in-house team members even when they take days off from work. The cost of maintaining internal infrastructures, including dedicated warehouses, work areas, and resources spent on logistics, adds up to the high expenditure. In industries like FMCG, QSR, and F&B, susceptible to external factors, a minor variation in operations can largely impact overall costs. Time It is not an easy job to filter and recruit the right candidate for a particular vacancy in the supply chain. Even if you find the best one, it takes more time to train them according to the business specifications and take ownership of their responsibilities. Also, time is a critical factor in handling perishable foods, from procurement to delivery of the final product. When an in-house supply chain is not agile enough to meet the demands of timely logistics, it turns out to be a major hurdle. Risk of Dependencies Since the critical tasks are assigned to a particular person within a department, there is a high risk of dependency on them. It is a matter of concern during times when the person is unavailable or is already loaded with too many tasks to handle simultaneously. This dependency might, in turn, interfere with the seamless food supply chain activities and disrupt the entire cycle leading to stagnation of perishable goods incurring a considerable loss. Why should businesses transition from insourcing to outsourcing SCM? Streamlining the supply chain processes through outsourcing will go a long way in benefitting food businesses. According to Technavio, a UK-based research firm, the 3PL Indian market is expected to rise at a CAGR of 8%, valued at USD 10.74 billion from 2021 to 2025. Check out the comprehensive overview of why food businesses and FMCG companies must move from an insourced SCM to an outsourced one. Cost reduction Maintaining your warehouse and logistics, recruiting, and paying for a dedicated in-house team is now a costly affair, especially for FMCG and F&B industries. But, a third-party service provider with streamlined processes can undertake the whole responsibility of maintaining the supply chain at a comparatively lower cost. Always up and running Working with an outsourced 3PL company can help run your business throughout the year, which is the key driving factor to sustaining a food-related business. There is no risk of putting any business deal on hold with outsourced SCM due to the unavailability of resources. You can be assured of timely deliveries and be confident of meeting the fluctuations in consumer demands. High expertise and technology support Outsourcing SCM means you benefit from the third-party service provider’s experiences of working with several other brands. It could come in handy when your business faces any specific issue, and they could suggest the best possible solution that fits your needs. 3PL companies provide technology-backed services that ensure maintaining the right temperature and humidity and help meet other requisites for food storage and logistics. Quicker implementation When you recruit a new member with an in-house team, it takes a few days to weeks to complete the industry-specific training and get started. But when you outsource the supply chain activities to a third party, you get a quicker implementation of the tasks right away as they are equipped with the necessary resources. The quicker the actions are initiated, the better would be the customer satisfaction and trust in your food brand. Scalability The unprecedented times like the COVID-19 pandemic have seen a surge in demand for food-related products. The fluctuations in demand can be overcome by an optimized supply chain that could be achieved through outsourcing to a third party. You can quickly scale up or scale down the supply chain through outsourcing based on your requirements. Outsourcing your SCM could be incredibly beneficial to your food-associated business, especially when you are starting new,...
Introduction The Dodsal Group, headquartered in Mumbai, India is into diversified business like Pharma, Real estate and QSR. At present, the Group conducts its QSR activities through Dodsal Corporation, a franchisee of Yum Restaurants International. Yum in India is the principal Franchisee of brands like Pizza Hut, Dallas, Texas and has over 54 outlets spread across 11 cities in India. Dodsal Corporation had aggressive plans to expand to 150 outlets by 2010. Challenges Prior to Association with RK Foodland. Erratic Supply of temperature sensitive raw material in part-load resulted in material shortage at stores and high transportation cost. Service Requirements. Dodsal corporation moves products like cheese, butter, meat , sweet corn and other raw material from various suppliers to its stores situated across 11 cities in the country. The volume to one city or store is not sufficient to hire the full truck, hence Dodsal takes the ‘Fresh Rush’ services from RK Foodland. Synchronized Solutions. Commencing of ‘Fresh Rush’ schedule every 5th day from each location where major vendors are located really proved to be the bulls-eye for their requirement. RK Foodland introduced some effective ways for facilitating various steps for adherence to the schedule: Outcome
https://youtu.be/Aport31dmlM Food Supply Chain Leadership Forum’ is an initiative by Radhakrishna Foodland aimed at creating an exclusive engagement platform for food service and food brands operating across categories and channels in the Indian food supply chain ecosystem. The theme for this event is ‘Growth Imperatives for Young Food Brands’. Join us for some interesting and enlightening discussions around:• Building and scaling a food brand – experiences from a QSR startup and a young plant-based protein brand• What are their top supply chain pain points and possible solutions?• How leading brands have organized their supply chains to accelerate growth? Igniting these conversations will be our esteemed guests:• Mr. Sachid Madan (Ex-CEO – ITC Frozen Foods) – Industry veteran and mentor to food brands across growth maturity• Mr. Rajat Bawa (Co-Founder – Burgrill) – Young start-up creating a strong presence in fast growing QSR segment• Mr. Gaurav Sharma (Co-Founder – Greenest Foods) – Building plant-based food portfolio for retail and food service• Mr. Deepak Soni (Chief Growth Officer – RK Foodland) – Enabling supply chain outcomes for food and food service brands
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...
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...
Supply chain management is often acknowledged as a section that demands attention, integration & standardization. It takes strategic planning and smart execution to manage the smooth functioning of a business when it involves supply chain management. The level of difficulty advances a bit when the business keenly deals with perishables, food items and edibles. However, a minute change in the functioning of the business and outsourcing of supply chain management can ease the pain making the process hassle-free to a greater extent. Especially when it comes to the food service supply chain, outsourcing becomes prominent. Many supply chain companies in India, dealing with food & perishable edibles, find a need for systematic supply chain management. With top-notch cold storage facilities, flexible working & services with the fastest turnaround time; supply chain outsourcing highlights increasing the productivity of the business in all aspects. Outsourcing as a Business Aid Since outsourcing involves dealing with third-party for smooth functioning and integration of the business activities, it shifts the load from in-house management to the outsourced team. It mitigates the invested human hours, resources, & efforts with an easy functioning that works on command. Outsourcing is one of the most recognized things performed to lessen the in-house management pressure, thus, when aligned with supply chain management precisely complements the business with ample benefits. It plays a significant role in providing the business with a minimal overall cost, improvising the core competencies, fulfilling the customer requirements, focusing on a strong customer relationship & getting hands-on flexibility when it comes to maintaining a smooth supply chain. There are various ways supply chain outsourcing profits the business, it encourages smooth functioning and takes care of the additional effort that can benefit the business in another notable way. Various supply chain companies in India especially the ones that deal with the food service supply chain ought to switch to outsourcing if not done yet. It is significant for the business as it gives, Outsourcing the functioning of supply chain management gives an edge over competitors. This can be leveraged when it involves offering services aptly for customer satisfaction. Once you outsource the supply chain management, your operational costs reduce which effect in lowering the graph of overall costs. The resources saved over supply chain outsourcing will aid you with improving in-house facilities-in turn increasing revenue. Having a separate team that looks after the supply chain management shifts the burden from in-house teams and provides them with the flexibility to work at their pace and improve the core competencies of the business. The foremost & crucial factor that impacts the decision of supply chain outsourcing is the expertise the service renderer possesses. Supply chain management requires strategically planned execution and thus, is not an easy job. However, when you get industry experts with top-notch services to provide onboard, half of your job is done. The outsourcing company takes care of the important factors that aid the growth of your business. The motive of having a supply chain management is to maintain the balance between demand & supply. Outsourcing the supply chain gives an insight into the demand and supply, allowing the business to learn about the backsets and firmly set a strong foot to leverage this point against the competitors. Businesses Fail to Manage the Supply Chain Thoroughly as it Takes Expertise to Manage. Supply chain management is an essential part of business, hence needs to be taken care of keenly. Outsourcing works like a complement that benefits the business with end-to-end integration and smooth functioning. As a consolidated end-to-end supply chain development, outsourcing is not just a requirement but the ultimate need for smooth business functioning. Looking forward to outsourcing your supply chain management? Let’s talk and collaborate for the smooth functioning of your business!
CategoryBlog March 21, 2022 Businesses operating on products require an integrated fulfilment system to balance the equilibrium between demand and supply. However, as much as it is crucial to set up an end-to-end fulfilment process, it is also important to figure out how to put the system in force. Getting experts in the field on board for the task will help the business maintain a smooth flow, hence outsourcing supply chain management for a smart logistics solution yields good benefits for any product-oriented business. Especially when the business involves food products & delivery, outsourcing the supply chain management for end-to-end processes rendered by industry experts becomes the best choice. Outsourcing logistics as supply chain assurance for smooth functioning lessens the burden from in-house teams giving them more time to focus on internal operations and business growth. However, every time a business outsources supply chain logistics management, the quality assurance questions keep the management in a dilemma. Analysis to Ensure End-To-End Fulfilment Integrated end-to-end fulfilment by supply chain management ensures quality assurance in many ways. With a smart approach of following the quality of supply chain management, businesses and management can keep a track of the process along with maintaining a smooth flow of the distribution. As a practical approach to tracking the supply chain sustainability, the analysis of the supply chain is essential. The analysis requires examining the end-to-end fulfilment process & its distribution with proper diligence. The management of grievances with respect to the process and the indemnification or insurance in case of uncertain events arose during the fulfilment. Finding a reliable way to ensure the supply chain assurance and integrate it with a smart, positive & transparent approach. Smart Ways to Ensure Integration Quality & Supply Chain Sustainability There are various ways to track the quality of supply chain sustainability and its end-to-end fulfilment. Collaborating with the parties involved to track the process and transparency commits quality and assures of the responsibilities. To keep a track of smooth functioning by managing orders, processes & their execution irrespective of the status of inventory will keep the process transparent for every party involved. Monitoring the process from end-to-end integration of the supply chain eases the discrepancies or uncertainties involved or will occur in near future. It helps you monitor and ensure supply chain assurance. Projecting real-time transport & transit data assures the supply chain sustainability keeping it real & transparent for all the parties involved. It assures a smooth end-to-end fulfilment in all aspects. Building a stable relationship with suppliers becomes necessary to keep the management smooth & error-free. It lays a strong foundation, making the management easier & ensuring the supply chain assurance for smart logistics & fulfilment. Replacing the outdated systems and processes with new, updated & equipped ones will keep the quality maintained. Along with giving good results, this will also help with an edge over competitors in terms of better facilities. For all the quality checks & ensuring the supply chain assurance; it is crucial to outsource the services with industry experts having experience of years. RK Foodland, with its top-notch services for end-to-end fulfilment, provides supply chain sustainability along with a smart & integrated fulfilment of end-to-end logistics. Looking for the best logistics solutions for end-to-end integration of the supply chain, you are at the right place. Let’s talk!