The food and beverage industry is undergoing rapid and complex changes.
Today's consumers are ubiquitously connected, crave individuality and personalization, and are intolerant of complexity and latency. The rapidly changing nature of what consumers want is a food and beverage company's worst nightmare, but also its greatest opportunity.
Successful food and beverage manufacturers must be prepared to forecast and meet these ever-changing demands, including the proliferation of healthier, customized and environmentally friendly options.
Main challenges for food and beverage manufacturing companies
Being in a highly controlled and consumer-driven market, food and beverage manufacturers are focused on balancing growth, performance and cost, having as main challenges in this scenario:
- Minimize waste
- Reduce costs
- Minimizing risks
- Accelerating compliance
- Adapt quickly to the market
Digital investments are improving productivity and profitability
Operational excellence (production/creation of offerings) is the main objective that the industry is trying to address with its digital transformation strategy.
Food and beverage manufacturers have started their digital transformation journeys with a customer-centric and operations-centric view (including supply chain and distribution). Those that have made digital investments have so far seen the greatest impact on productivity and profitability, delivering the desired ROI based on their strategic business priorities.
Direct impact on revenues and profitability
Digital investments are having a positive impact on both revenue and profit performance for food and beverage manufacturers. The best-performing companies already have a digitally native culture, tools and processes, which is causing them to pull away from the rest due to a closer connection with the customer and higher productivity overall. This is creating a digital divide, where the laggards are having trouble sustaining their businesses and remaining competitive.
The role of ERP in digital transformation
For decades, food and beverage manufacturers have invested in outdated legacy systems, highly customized applications and "financial" ERP, creating a technical debt that is a real nightmare to solve. This archaic ERP heritage, coupled with the continued use of spreadsheets, is what is preventing companies from moving forward on their digital transformation journeys, and is one of the key challenges they need to solve.
The role of ERP in the food and beverage industry is critical in managing processes and creating transparency in the supply chain. Other manufacturing technologies can benefit from the data managed by ERP such as Manufacturing Execution Systems (MES), traceability software and business intelligence software are just a few examples.
This is amplified by the fact that there are supporting technologies that enable seamless collaboration and foster decision making, such as artificial intelligence and the cloud.
Sage X3: the ultimate ERP solution for food and beverage manufacturers
Sage X3 meets the complex requirements of the food and beverage industry. It helps companies respond more quickly to customer demands and market fluctuations, and helps minimize waste and reduce the risk of product recalls by ensuring the quality, traceability and safety of all materials and ingredients. Sage X3 also helps companies in the industry quickly adapt procedures to changing regulations and compliance requirements.
In this post we tell you te tell you everything that Sage X3 and PKF Attest can offer you to optimize the management and processes of your food and beverage manufacturing company.
From PKF Attest as experts in the implementation of Sage business solutions since 2002, we offer you Sage X3, the new generation business management solution designed to improve the agility of the organization and make your company grow faster.
