The global supply chain is a collection of networks. The chain distributes products, resources, and services across the world. While each industry is subject to its own supply chain issues, food and beverage companies face unique challenges.
But, these challenges can be alleviated with the use of technology. Some examples include automation and data processing. Read on to learn 6 of the most common supply chain issues food and beverage companies must manage today.
1. Supply Chain Management and Scheduling
In the food and beverage industry, companies must rely on a functioning and reliable supply chain. This is critical to avoid supplier issues.
Food and beverage companies need to continue automation and technology. This helps to improve production and stay ahead of scheduling delays.
2. Maintaining Sustainability
Sustainability is an increasing customer trend for food and beverage companies. A Mckinsey & Company study shows that while many consumers rate sustainability as a lower priority than shelf life or price.
Still, the study reveals that sustainability is a growing and important trend. Sustainable packaging is an important consumer trend to incorporate into the supply chain.
3. Maintaining Inventory
For food and beverage companies, maintaining inventory is a tremendous challenge. This is due to expiration dates and the shelf-life of these products.
Food safety and compliance are key practices for production and distribution. Food and beverage companies should consider adopting technology like TraceGains. This can help to lower supply chain risk and take control of data.
4. Changing Consumer Concerns
Food and beverage companies are not only being called to disclose product ingredients. Today, consumers are interested in where food and beverage are being sourced.
This changing consumer trend presents a tremendous challenge for companies to control data and disclose information. To be more transparent with consumers, supplier management companies will have to provide customer assurances. Examples include product labeling, weight, measurements, and more.
5. Increased Regulations and Restrictions
The U.S. Food and Drug Administration (FDA) has strict food and beverage safety regulations. These regulations dictate everything from food ingredients to preparation style and storage instructions.
These restrictions are beneficial and necessary. But, they can add cost and time to supply chain practices and create supplier issues.
6. COVID-19 Continued Impact
Supply chain issues 2020 continue to impact operations in 2021. At the onset of the pandemic, the global supply chain could not keep up with consumer demand. This resulted in strains on resources to try to keep store shelves stocked with product.
As many companies continue remote work operations, consumers are eating at home more frequently. This will continue to impact the demand that food and beverage companies will have to keep up with.
Supply Chain Issues Can Be Overcome
These issues highlight the major supply chain trends and challenges. Food and beverage companies can continue to overcome these supply chain issues.
But, they will need proper planning, the right technology, and data processing systems. If you found this information interesting, check out our other business-related articles.