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26

Jun

Do you have visibility and traceability across your supply chain and production processes?

Does your sales and operations planning team stay on the same page? Are you locking down your production window consistently or do you constantly seem to have to react and shuffle the deck chairs? 

This isn’t uncommon. Shorter run sizes, changing customer demands and the need to react to unexpected upstream supply chain issues are all part of doing business.

Starting with procurement of raw materials, having visibility of incoming supply allows both warehousing and manufacturing staff to plan their workloads. Having a system that can account for expected receipts and manufacturing timeframes will help your customer service team provide better service to your end customers. And understanding the impacts of upstream supply issues timely will allow changes to be made quicker and communication to customers earlier.

Product traceability is a hot topic in the Food and Beverage industry and we have seen examples of how this can negatively impact a business if not handled well. Being able to trace lots forward and backwards through production to end customers and suppliers is vital. A product recall is never a good thing but having good information to manage this quickly and efficiently with a high degree of certainty will provide a better outcome if the worst happens

Expiration dates are another key part of lot or batch management and complexities arise when an expiration date means different things to different customers. To some customers an expiration date with less than three months remaining is non-negotiable but for some customers and products an expiration date is only a suggestion. Having these business rules in a system and not in people’s heads is how a business will be able to grow.

In primary industries manufacturing we see the need to deconstruct and this paves the way for multiple processing options for a single raw material. Each option will provide multiple co- and by-products with decisions on what to make affecting the availability of multiple products. Often this is in a limited supply scenario where you can’t simply go and catch or farm more of the raw material. Being able to see the impact of decisions before they are made allows better use of scarce raw materials.

Another benefit of enabling the capabilities mentioned is that you will be able to better predict cashflow and forex requirements. By having all transactions in a single system should give you a view of the demand on your cash reserves and allow you to plan this out with expected receipts. With predicted import purchases in the system, organisations should have a better idea of expected forex contract requirements.

What comes next? Technology has advanced to the level where it can watch, understand and help identify patterns in your work practice. These patterns can help you improve as well as predict what will work best under a given set of circumstances. Machines won’t replace your great staff, but they will provide insight and analytical expertise that will revolutionise your productivity and success.

Supporting sales and operations planning with good information leads to the best decision making. It also leads to improved turnover!

Best practices and what can Intergen do for you

  • The objective is transparency across your demand, supply production and fulfilment activities, creating an environment where changes in one area are rapidly identified and often automatically reflected in your production plan. In particular we can help you navigate the following complexities to achieve best practices:
  • Visual sequencing, which allows you to set up batches for production on certain equipment, schedule packaging lines, and add other tasks to build a complete, reliable schedule
  • Recipe (BOM) management and flexibility around batch processing, helping you plan for fewer more productive runs and lower overheads, with the ability to quickly change based on lack of raw materials or changes in composition of raw materials is key
  • Ability to use lot and batch processing and ensure traceability, inherited from downstream conversion processes, which is vital if you face a product recall due to inferior raw materials from one lot that was consumed as an early input to your manufacturing process
  • We can provide the ability to manage rules around Lot/Customer/Item expiration specifics in a system to reduce costly returns
  • We can also cater to quality checks that support compliance (e.g. food safety, organics, etc), enforcing QA and recording results, managing source of origin and tracking supplier certifications including renewal follow up
  • The challenges of a de-construction manufacturing process found in the primary sector, including the need to maintain dual units of measure (weight, carton, etc), and creation of co- or by-products.
  • Ability to model New Product Development (NPD) to understand cost of sale and consider margins and appropriate target market pricing early in your NPD process.

“We saw immediate improvements from day one. It started in the manufacturing side of the business where Microsoft Dynamics provides a more precise and clear real-time view of what’s required, when and where all the necessary components are – and the state of the whole transaction.” CEO – ASSA ABLOY NZ

If you’re facing these challenges and know it’s time for change download our food and beverage industry whitepaper now, or reach out to us so we can help you in your journey from good to great. More predictable profitability awaits you - let us help you by delivering tomorrow’s business advantage today!

Posted by: Derek Lamb, Solution Specialist, Dynamics Solutions | 26 June 2017

Tags: mobility, data insights, Food and Beverage


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