Practical Insights (Blog)

Food Production Efficiency and Productivity Key to Long-Term Growth

What are the most significant challenges that food processors and manufacturers face now?

Steve Buchanan: It’s well known that margins in grocery stores and supermarkets are lower than in almost any other industry, so increases or decreases in production costs cannot be reflected in end-product price without the danger of losing shelf space, location, or even possibly an entire account. Production efficiency becomes more important than in nearly any other industry.

Topics: Food and Beverage

Chemical Companies Need to Take Supply Chain and Sales/Operations Planning More Seriously

How mature are chemical companies in terms of unlocking the potential of sales and operations planning (S&OP)?

Peter Robinson: Based on my exposure to a number of chemical companies and looking at their inventory profiles (raw material and finished goods), most of them are not at all advanced in S&OP. They are not taking seriously the need for an S&OP process and not getting the end-to-end supply chain involved in operations planning. Ultimately they need a single game plan that all stakeholders buy into so that true discipline may be imposed on what is manufactured. More importantly, the game plan must reflect what they sell: chemical products. Not manufacturing them. That is how working capital and inventory are optimized.

Topics: Chemical