Intelligent Supply Chain Planning in Food & Beverage Manufacturing

Intelligent Planning can help you combat decreasing margins, drive value from co-produced goods, and make better planning decisions.

What our customers say about us

“Find the right partner because that will help you maximize the solution you’re obtaining. In reality, buying and implementing software is never easy. Finding the right partner makes a hell of a difference.”

— Natalia Perez-Espinosa

Senior Director of Technology and Transformation, Herbalife Nutrition

WATCH THE HERBALIFE STORY WEBINAR

“With multi-faceted planning challenges, DELMIA Quintiq and the team at The Logic Factory streamlined our recipe and material requirements into one planning system, which allows us to further improve on delivering the best quality products to our customers. Our users find the new system easier to navigate, making everyone much happier all around.”

— Jesse Moya

Senior Manager of Formulations, Planning and Analysis, Kraft Heinz

The challenge

The food and beverage industry is uniquely complex, with its diverse products, recipes, and regulations. As producers, you often have to balance variance in costs, quality, and supply availability against existing demand and future trends. With the rising cost of raw materials and the drive for sustainability, you also need to adapt your recipes while providing high standards of quality and service to your customers.

Legacy solutions and processes can no longer be relied upon for overcoming such challenges. With the help of advanced supply chain planning solutions and our implementation and industry expertise, you can identify and address gaps and bottlenecks in your supply chain while making it more resilient and agile. Let’s walk through some common operational challenges and how you could solve them.

  • Situation
    You rework plans at every level of the supply chain, resulting in inefficiency, higher costs, and reduced agility.
  • Complication
    You use spreadsheets to fill the gaps between planning tools. Consequently, each level has its own set of KPIs and data.
  • Question
    How can you achieve a consistent, high-quality plan where everyone understands their goals?
  • Answer
    Implementing an integrated planning solution will improve your data quality and enable every planner to work towards the same KPIs and goals.
  • Situation
    Each function in your supply chain works in isolation with no visibility of how their decision impacts other parts of your operations.
  • Complication
    Due to isolated decision-making across the supply chain, each function’s plan becomes more complex and less efficient.
  • Question
    How can you help your planners focus on the big picture and not on their individual silos?
  • Answer
    If you adopt a holistic approach toward your planning, your planners will make better decisions as they can see the impact of their actions across all functions.
  • Situation
    You’re facing consistent increases in prices and reduced margins.
  • Complication
    To maximize your margin, you and your planners are forced to consider a wider and more complex set of options.
  • Question
    How can you maximize margin and minimize waste?
  • Answer
    An advanced solution with an optimizer like Intelligent Food Planner will help your planners balance KPIs and consider millions of options, producing the best plan for your business.
  • Situation
    You want to keep up with the latest trends and customer demands, so you create new recipes and bring products to market faster than you’ve had to before.
  • Complication
    You’re facing increased planning complexity because of introducing or terminating products. This is exacerbated due to changing inventory levels.
  • Question
    How can you ensure that your planning and procurement teams prevent the creation of obsolete stock when products change?
  • Answer
    Intelligent Food & Beverage Planning ensures that you meet your customers’ SLAs while dynamically adjusting stock requirements based on demand and cutovers.
  • Situation
    You still need to deliver high-quality products to match customer expectations even though prices of raw materials have increased and their availability is unpredictable.
  • Complication
    Customers want a clean ingredient list and a long shelf life while needing to control their expenditures.
  • Question
    How do you maintain the quality of taste and feel while controlling the cost of production?
  • Answer
    Your planning solution needs to choose the best options from variable Bills of Material (BoM) and ingredient lists to ensure product quality at minimum cost.
  • Situation
    Your supply chain planning is often reactive. For example, inbound raw materials are of a different grade, or resources are unavailable.
  • Complication
    Your planners need to make interconnected decisions. For example, they must fulfill demand (pull planning) while using raw materials before expiry (push planning) without having time to validate all viable options.
  • Question
    How can you help your planners make better, more consistent decisions, reduce errors, and missed opportunities?
  • Answer
    You need to support your planners with the correct tools to make better, quicker decisions, considering a far greater range of options than possible when planning manually.
Planning Silos
  • Situation
    You rework plans at every level of the supply chain, resulting in inefficiency, higher costs, and reduced agility.
  • Complication
    You use spreadsheets to fill the gaps between planning tools. Consequently, each level has its own set of KPIs and data.
  • Question
    How can you achieve a consistent, high-quality plan where everyone understands their goals?
  • Answer
    Implementing an integrated planning solution will improve your data quality and enable every planner to work towards the same KPIs and goals.
  • Situation
    Each function in your supply chain works in isolation with no visibility of how their decision impacts other parts of your operations.
  • Complication
    Due to isolated decision-making across the supply chain, each function’s plan becomes more complex and less efficient.
  • Question
    How can you help your planners focus on the big picture and not on their individual silos?
  • Answer
    If you adopt a holistic approach toward your planning, your planners will make better decisions as they can see the impact of their actions across all functions.
  • Situation
    You’re facing consistent increases in prices and reduced margins.
  • Complication
    To maximize your margin, you and your planners are forced to consider a wider and more complex set of options.
  • Question
    How can you maximize margin and minimize waste?
  • Answer
    An advanced solution with an optimizer like Intelligent Food Planner will help your planners balance KPIs and consider millions of options, producing the best plan for your business.
  • Situation
    You want to keep up with the latest trends and customer demands, so you create new recipes and bring products to market faster than you’ve had to before.
  • Complication
    You’re facing increased planning complexity because of introducing or terminating products. This is exacerbated due to changing inventory levels.
  • Question
    How can you ensure that your planning and procurement teams prevent the creation of obsolete stock when products change?
  • Answer
    Intelligent Food & Beverage Planning ensures that you meet your customers’ SLAs while dynamically adjusting stock requirements based on demand and cutovers.
  • Situation
    You still need to deliver high-quality products to match customer expectations even though prices of raw materials have increased and their availability is unpredictable.
  • Complication
    Customers want a clean ingredient list and a long shelf life while needing to control their expenditures.
  • Question
    How do you maintain the quality of taste and feel while controlling the cost of production?
  • Answer
    Your planning solution needs to choose the best options from variable Bills of Material (BoM) and ingredient lists to ensure product quality at minimum cost.
  • Situation
    Your supply chain planning is often reactive. For example, inbound raw materials are of a different grade, or resources are unavailable.
  • Complication
    Your planners need to make interconnected decisions. For example, they must fulfill demand (pull planning) while using raw materials before expiry (push planning) without having time to validate all viable options.
  • Question
    How can you help your planners make better, more consistent decisions, reduce errors, and missed opportunities?
  • Answer
    You need to support your planners with the correct tools to make better, quicker decisions, considering a far greater range of options than possible when planning manually.

Secure long-term success with intelligent planning

By combining our supply chain software implementation expertise with your industry knowledge, we can:

Attain one version of the truth

Break down information silos that hinder your visibility. Make decisions confidently by knowing that it’s the right option for the whole business by locking your corporate KPIs into every planning decision.

Forecast confidently with what-if scenarios

You can avoid reactive planning by modeling changes - working patterns or product ranges - before implementing them. Using a virtual twin of your operation will help you better manage volatility and disruption in your supply chain, increasing agility and reducing the cost of change.

Always have a quality plan

As you can plan for longer horizons, you can stabilize the plan quality not just for today but for any day, irrespective of the complexity of the plan. You can also identify markets where future co-produced products can provide additional value and use variable BoMs to enable minimum-cost production while maintaining quality.

Brochure

Intelligent Food Planner

How can you plan faster, smarter, and better in the ever-evolving food and beverage industry? Your first step would be to use our Intelligent Food Planner. Read our brochure to see why.

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Let us be your trusted partner for supply chain planning and optimization
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