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Supply Chain Planning in the food industry fresh produce
Supply Chain Planning in the food industry fresh produce
Thrive in a climate of stricter regulatory burdens, increased demand for sustainability and new e-commerce expectations. Plan and execute your operating strategy based on a clear view of your global supply chain.
Harvest the benefits of advanced capabilities.
Global food and beverage (F&B) supply chains are complex and undergoing rapid change, forcing companies to recognize the need for comprehensive digital planning. The Logility® Digital Supply Chain Platform provides advanced supply chain optimization coupled with extensive flexibility for a wide variety of F&B sectors, including alcoholic and non-alcoholic beverages and packaged and perishable foods.
Embrace demand forecasting
Accurate forecasting helps food and beverage companies optimize their production efficiency, reduce inventory costs, improve distribution and streamline purchasing.
Implement predictive scheduling
Even without supply chain volatility, companies need to use automation and analytics to optimize production schedules.
F&B companies need an accurate, complete digital picture of their operations in order to diversify suppliers and respond to challenges.
Achieve low-cost compliance
Navigate a more stringent regulatory landscape that places a premium on digital chain of custody, reporting and documentation.
Streamline and align S&OP
Turn S&OP and strategic planning into a formal comprehensive process with integrated business planning (IBP).
The future of supply chain technology for the food and beverage industry is available now.
Logility supplies the visibility and capabilities to succeed in this fast-moving sector with unique and significant challenges.
Develop manufacturing plans that deliver least cost and least change, both within inventory limits.
Meet Service Goals Profitably
Use customer-specific forecasting profiles, “what-if” analysis and time-phased inventory policies to gauge cost-to-serve.
and Reduce Risk
Use native performance management capabilities to help you focus on global supply chain priorities.
Gain Real–Time Supply Chain Visibility
Formulate and revise plans based on real-time pictures of demand and inventory — even across complex global supply chains.
Streamline Product Launches
Meet profit goals while answering the constant need for innovation, variety and differentiated items.
Supply Chain Planning in the food industry fresh produce Solutions
Replenishment Planning and Optimization
Inventory Planning and Optimization
:Welcome back to our Planning Posts supply chain blog and podcast community! This is Haraway from Supply Chain Now and Back beat Marketing, and I once again be your host. I am especially excited to be your host for this episode!
If there were ever a chance to change the format from a podcast to a REALITY TV SHOW. Guys…. I think it would be this episode.
Welcome, ! And a big welcome back to our Planning Posts ‘resident’ experts. & , tell me first…. can do it?
: , we have known a long time. Trust me, if anyone can do it,it’s . I have worked with and his teams for years, and he has trusted me with the training of inventory gurus. hires and develops true supply chain planning professionals!
: , I like ’s idea of a Reality TV Series with this one. First of all, is a big movie buff. He’s even part of a weekly movie podcast crew.
But , I agree with . is such a unique talent. He has been in this position before and delivered really great financial results. If anything, I think our community want to follow him not just for the enjoyment of watching them go through it, but to learn from his experiences. I think do have a chance for a podcast series here.
: Well , those are some big expectations. Welcome to the show and tell us about your team and where your head is right now as you prepare to go from good to great.
: Thanks, guys. [Gives overview of his company, position at Global Industrial, his great team,and a quick 30,000-ft view of the coming weeks].
: We should mention also that , like all of us, was an inventory analyst/buyer when he started, and because of his success moved to the unique role of Champion Leader — then of course now, in recent years, reached the executive level that leads the inventory team.
: Yes. So and I were really lucky to work with because whenever we had a new idea or new strategy we wanted to try, we would turn to and he would implement it. You always go first where you know you are going to be successful.
was the first to implement our Blue-Chip Buyer program and to do some of the
: So , let me hit you right between the eyes. I want to ask you the same question that your company owners probably asked you….. What ROI results do you think you deliver with supply chain planning software?
: Bold and aggressive.I like it!
So now the tougher question and the reason we are here. Tell our community HOW you and your team are going to do it?
In our title, we are promising them 5 Immediate ROI Areas of supply chain planning software. and , feel free to chime in and help him out or challenge his plan. We want our community to understand these 5 areas fully.
: I do it. And let me start by saying that came in and helped me step through a smart process to figure out where we had our biggest ROI potential. Our 5 immediate areas might be different than other companies’ top 5s, but I think everyone can learn something from our discovery.
When you use an advanced supply chain planning software tool for years, you quickly understand and feel the lack of the necessary forecast management tools when you step into an environment that does not yet have these advanced resources.
#1 –Savings from reducing safety stock
: , you have had some time to step back and look at things. Where do you think your first big win be?
: I think for sure that our biggest need, and for many companies their biggest miss, is GETTING THE SAFETY STOCK RIGHT.
I have seen the impact of having the math and processes to get the right safety stock on each item… [continues – makes a point about reducing $$ on inventory on A items& finally hitting service on C and D erratic items]
#2 –Understanding seasonality
: , that is so interesting, but not shocking really about seeing strong and immediate benefit from correct Safety Stock including seasonal items.
I think most people would have expected you to say Demand Forecasting….
: Years ago, I would have thought the same thing, but the inventory reductions are so dramatic when you get safety stock right!
All areas of Demand Forecasting be key for us….but especially having advanced help with SEASONALITY.
I know we see great benefit from having strong Seasonal Forecasts, but what might be more important is having a supply chain planning solution that shows us where seasonality is. [explains further]
: I’m not even an inventory management professional, but I can imagine that having a solution show you seasonal movement which you didn’t realize was there would be a huge win.
What else be game-changing for your team?
#3 –Replenishment optimization
: Kicking the expensive habit of fixed-cycle buying.
You know, like most people who don’t use advanced replenishment solutions, we buy everything based on a schedule. Can you imagine not have a replenishment optimization solution that told you that your items were getting low?
Moving from a typical schedule, where we buy every Wednesday or every other Thursday, to areplenishment optimization solution that tells you each morning which orders are needed to optimize replenishment (profitably)… raises service, lowers inventory and puts my team back in control.
#4 –Customer experience
: , you have seen both worlds so you are in a great position to know where you see financial impact of supply chain planning software and where your team win hours back. This 4th area hits both!
Let me switch gears a bit. I know your main focus is to deliver financial results to the company. You want to reduce inventory, improve customer experience, and free up cash. But what about areas that impact the culture and the mood of the inventory department?
: I have thought about that and it’s an easy answer. I was used to having a control knob for the inventory level. I am anxious to drive the inventory properly through better customer experience and service. We want to set a really intelligent mix of service goals, and then be able to easily shift the mix if we need to pull afew million dollars out, or if we have to increase our customer image in a region.
That process used to be trial-and-error, and soon it be ap recise process where I know the numbers ahead of time.
Learn more about supply chain analytics solutions
: I remember so well when I was in that seat, . Having that control knob gave us confidence. You are always ready to show a sales leader or executive why you can’t afford their great idea of 99.9%service on all items.
What about the ability to see your inventory? Do you have strong views now? Or this move take the blinders off?
: We can’t see the inventory investment the way we WANT to or NEED to today. We finally have smart, supply chain analytics and dashboards that tell us stories we can put into action…
These are all great.As we close today’s episode, how about a rapid-fire round? A bonus. Give us a few bullets of other areas – some freebies – where you know you see great benefit from supply chain planning software.
urpose: Advanced Planning Systems (APS) can contribute to improved decision-making and enhanced efficiency along complex food supply chains. This paper presents a systematic literature review of supply chain planning (SCP) in the food industry. In particular, the literature on three increasingly important planning tasks supported by APS is examined, namely Supply Chain Network Design, Sales & Operations Planning and Production Planning & Scheduling. Methodology: A literature review is conducted by systematically collecting the existing literature published between 1998 and 2020 and classifying it based on three planning tasks supported by APS modules (Supply Chain Network Design, Sales & Operations Planning and Production Planning & Scheduling). Furthermore, research papers are categorized according to the product under consideration, geographic region and method. Findings: Multiple models for SCP practices have been developed. The modelling literature is fragmented around specific challenges faced in food supply chains. Empirical literature including case studies on the implementation of APS is sparse. The findings suggest that developed models for the three examined planning tasks are only implemented to a limited extent in practice. Originality: This paper focuses on three planning tasks that are of increasing relevance for the food industry. The literature review can help practitioners within the food industry to get insights regarding the opportunities offered by the three software modules examined in this paper. Further research should be conducted in these areas to make literature on SCP more practically relevant for managers.
Supply chain planning for food