Top 5 Challenges Food & Beverage Manufacturing are Facing in 2022

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Changing Times in Food & Beverage Manufacturing

It is an exciting time for food and beverage manufacturers as their industry experiences a period of intense changes. These changes present new opportunities to challenge traditional norms. And create innovative products, services, distribution channels, manufacturing processes, and more. New ways to engage with consumers through digital media, social media, showrooming, or reverse showrooming will also significantly shape how companies operate from day one.

The best ways to avoid a food and beverage manufacturing company’s challenges are to have the right products, be innovative, have reasonable quality control and process compliance, stay competitive while working hard, and work well with customers during a changing marketplace. Food and beverage manufacturers need to take a fresh approach to how they do business and better understand the changing context in which they operate. Some of the top challenges facing food and beverage manufacturers today are listed below

Also Read: “The Consequential Role of PLM in Process Industry”

 

Consumer Demand for More Incredible Product Innovation and Transparency

This means being creative with new flavors or ingredients, developing sustainable solutions, continuing to innovate in supply chains using technology, providing clarity about products through social media, etc. The more informed consumers are, the more discerning their tastes become. Creating new opportunities for food and beverage manufacturers to develop differentiated products.

Consumers today have an insatiable appetite for information about what they eat and drink. More than 80 percent of consumers read nutritional labels when shopping for food and beverages. More than 50 percent say they modify purchases based on what they know about a particular product’s ingredients or origin. Some consumers want more detailed information on where ingredients come from, nutritional facts, calorie content, and what exactly is used as additives. To win in today’s market, companies need to tap into that demand with a consistent stream of innovation.

 

Processing Capacity and Efficiency

Many foods and beverage manufacturers are challenged with the time it takes to process, manufacture, package, and deliver their products. This can be due to several factors. For example, a manufacturer may need to expand its processing capacity, decrease operational costs, reduce waste and minimize harmful emissions while increasing productivity. Sustainability also plays a vital role in the manufacturing process. Manufacturers must fulfill the requirements of both current and expected future customers about manufacturing, as well as: maintain or improve product quality; offer consistent service levels; decrease operating costs; protect the environment; meet health and safety regulations, and increase profitability.

Manufacturers often rely on a toolbox approach when solving their most critical issues or opportunities. Faced with complex problems involving multiple factors, such as scheduling, production planning, problem-solving techniques, or process optimization methods, can be used to achieve a better business solution overall. Some of these tools are derived from Six Sigma, TPM, Lean Manufacturing, Continuous Improvement, and other methodologies.

 

Giants’ Competition

Large food and beverage companies such as Coca-Cola and Pepsi have huge budgets for advertising their products. Which means that smaller companies may find it hard to compete. The food and beverage industry is a high-pressure market, with companies like Coca-Cola running ad campaigns that dwarf their competition. Larger competitors can create more awareness of not just their products but also their company in general. Smaller players will have to work significantly harder to keep up with the competition.

Smaller players are fighting an uphill battle in acquiring new customers and retaining them over the long term. The sheer number of companies in the market makes it hard to break through the noise and get noticed while still trying to be cost-effective with their marketing.

This can often mean that smaller players have to resort to more complex promotions, which will require a substantial investment in time and money. In the age of social networking, it is easy for customers to find out about promotions that have come and gone. Therefore, those companies are often left with wasted money on advertisements that no one saw.

The same can be said for consumers, who may not be aware of all the available facts about a company; they only get exposure from word of mouth from friends and family who are happy with their product or service.

 

Tighter Profit Margins

To succeed in the 21st century, food and beverage companies need to operate their businesses across the supply chain with better insight than ever before, making faster, safer, and more informed decisions. The new reality of the global business environment means food and beverage manufacturers need to be more deliberate with investing capital, look for cost efficiencies, and devise ways to reduce the waste they generate. The good news is that the technology they need is cheaper and more widespread than ever before. Tight profit margins, the reduced demand for packaged goods, the availability of generic products, and the rise of national or regional brands all mean that there are benefits to be had in improving ingredient quality and sourcing.

The case for setting tighter profit margins has been made in every aspect of food manufacturing. From equipment manufacturers to retailers. However, many companies find it hard to act on this principle until loose margins are lost due to a downturn in sales.

 

A Dynamic Workforce

The digital generation has fundamentally altered how consumers interact with businesses. In the past, the thought of tracing a food or beverage product back to the seed planted and harvested, to the manufacturer and distribution center, and then to retail stores where a consumer would eventually purchase it would have been a Herculean task.

Furthermore, real-time traceability is now not only possible but also expected. Knowing every step of that journey allows companies to communicate with customers in much more meaningful ways. Thereby leading to more profitable relationships built on trust. Consumers have been empowered to make healthy choices, and they expect transparency. They’re not interested in being sold a mass-produced product with synthetic ingredients.

Also Read: “Strategic Leadership Determines Impact of Digital Transformation”

 

A Holistic Approach is Essential

Building an effective sustainability strategy is a complex challenge, but it can and must be done to remain competitive in this marketplace. Just because food and beverage manufacturers are making progress in some areas doesn’t mean they can address all challenges simultaneously. Managing each challenge independently often leads to a fragmented response that ultimately fails to inspire and engage consumers. It further fails to drive profitable growth, or improve operations.

The secret to success lies in an integrated approach that incorporates all aspects of business into one cohesive plan. An integrated system that includes multiple business units, such as research and development, supply chain management, and collaboration, will allow a company to go beyond compliance to create new value.

Also Read: “Benefits of Industry Specific PLM in the Food & Beverages Sector”

 

Tackle Food & Beverage Manufacturing Challenges with KloudPLM

KloudPLM is an innovative, cloud-based solution for the food and beverage industries.

We’ll help you build a dynamic workforce. Companies have become increasingly agile, taking advantage of the latest technologies to keep up with their evolving marketplaces.

The digital generation has fundamentally changed the way consumers connect with companies. In the past, the thought of tracing a food or beverage product back to the seed planted and harvested, to the manufacturer and distribution center, and then to retail stores where a consumer would eventually purchase it would have been a Herculean task.

KloudPLM offers a wide variety of features, like

KloudPLM helps plan, organize, optimize and execute customized business processes using a combination of business intelligence, process management, and cloud technologies. Schedule a demo today to know more. 

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