Sustainable and efficient manufacturing is key to our future food security. | So Good News
By Mark Wilson, SYSPRO EMEA CEO
The agricultural sector is important for the development of our country. Despite South Africa’s enormous agricultural potential, Domestic production is insufficient to meet domestic demand, relying on importers to fill this gap. It has become increasingly important for local food and beverage (F&B) producers and distributors to reduce this rare shortage, which will not only ensure food security but also provide a much-needed economic boost to the country.
At the same time, They are business development; Play a role in driving job creation and a more productive economy. But to do so, The F&B industry needs innovation and technological solutions to find new ways to be efficient and our F&B producers to future-proof our food production.
Examining the challenges of the F&B industry.
2022 is a global pandemic; conflict Unstoppable climate warming; We find ourselves recovering from rising prices and international tensions that have seriously affected global food security. However, in the past three years, we have seen many challenges for the availability of F&B products. PWCs The latest South African economic outlook shows manufacturing, The South African Economic Outlook reckons that the acceleration of COVID-19 on unrest and looting and the floods in April and May 2022 have had a major impact on businesses in South African ports. In addition to the current challenges on land and ports, there are many other factors that are disrupting producer and consumer challenges.
Inflation is now a global phenomenon, fueled by a number of factors, including Russia’s invasion of Ukraine, as both countries are major grain producers. Russia’s invasion of Ukraine has changed global trade patterns, and soft commodity price increases continue to impact F&B producers. Although corn prices have fallen in recent weeks, fertilizer prices remain high and some farmers are using them sparingly as corn prices show signs of contraction.
shrinking profits; rising costs of raw materials; consumers change the product mix they buy; With a smaller portion of their revenue being spent on F&B products, companies need to re-evaluate their business plans and use advanced data analytics to make informed decisions.
Improve performance through technology.
to keep costs low; Efficiency is critical for any business to protect profits and compete in globalized markets. F&B producers and distributors are entering the digital age with access to the information and resources they need to sustain their agricultural produce. With the right systems and technologies; F&B manufacturers and distributors to embrace new technologies that can improve visibility and efficiency in their business; managing changing demand and recipes; It will embrace new technologies that will improve yields and stabilize an industry essential to South Africa.
of SYSPRO Research survey Realigning the links of disconnected supply chains.During the pandemic, it showed that 65% of F&B businesses have invested in IoT or IIoT (Industrial Internet of Things), and 55% of F&B businesses have invested in cloud computing. Cloud is a positive step in the right direction, but Data analytics is still a growth area, with only 23% of F&B businesses investing in analytics tools to gain real business insights.
By using AI (Artificial Intelligence) along with cutting-edge technologies, we can take advantage of ML (Machine Learning), which continuously mines Big Data as a common language, allowing us to collect and process large amounts of data. Range of resources. AI/ML can help your organization’s manufacturing lines; Finds patterns of performance/meaning in the data examining the performance and other metrics of each of the business processes (procurement, production, distribution, and finance) across customers and suppliers (procurement, production, distribution, and finance). Interventions are needed to ensure proper functioning and avoid disruptions, resulting in better outcomes. If producers find their changes need to be remedied, organizations can drill down into effective teams and adjust as needed.
Reduce wastage with data analysis.
Waste can always be a drain on the food and beverage industry—such is the current nature of the market, which trades in so many perishable and processed goods. Waste is cutting food; poor planning; Exceeding shelf life; From damage and logistics/delivery delays. However, the current volume of waste organizations should not be an inescapable conclusion. It can provide information on how to improve in this case.
A purpose-built ERP platform has a significant impact on food waste by maintaining and tracking your expiration dates in a fully digital database, “first expiration; First Out” (FEFO) helps guide the selection process. Past data from food manufacturers’ product portfolios or similar product lines allows them to estimate product sales figures before the products are delivered to the store. This data can be used to produce and transport only what is needed, a revolution for food manufacturers.
F&B organizations now remain relevant and grow in the future. They need to roll up their sleeves and tackle the digital transformation challenge head-on, creating real-world impact and making production and distribution more efficient. Taking efficient service delivery to the next level.
South African F&B manufacturers must begin to re-evaluate the processes they have in place and innovate new business models/processes to unlock efficiencies. Among the challenges facing SME F&B producers is pressure to gain the visibility and control they need as economic inflation increases. ERP can be applied to manufacturers and distributors of any size; Give them tools; They support critical decisions and ensure more efficient processes and food security for the future.