3 Common Challenges Facing Food Manufacturers
Understanding the industry’s latest trends, opportunities and challenges is imperative for getting ahead of the competition. Moving upstream toward a digitally focused business model is not an easy task. It requires a holistic digital intelligence strategy and a robust modern ERP.
Generally, there are three common roadblocks that hold most food and beverage companies back:
- Data Silos: Historically, organizations have implemented software to solve specific business needs: an ERP system to handle accounting, production software to handle the manufacturing plant, etc. As a result, companies struggle to get a handle on their disparate systems, moving data from one spreadsheet to another to try and get a full picture of the company. Modern systems are designed for integration, putting necessary data right at a user’s fingertips.
- Outdated equipment: Food manufacturing equipment is expensive, and the cost of replacement can prove too much for a company to handle. As a result, many organizations find themselves putting off investments in capital projects as aging equipment becomes obsolete. However, changing industry regulations means that many legacy systems are not equipped to keep up, which can negatively impact a company’s bottom line—and lead to even costlier recalls.
- Labor shortages: According to a joint study by Deloitte and the Manufacturing Industry Institute, approximately 2.4M food and beverage industry jobs will go unfilled between 2019 and 2025. This situation is further impacted by the industry’s rapidly aging workforce, who will take a wealth of knowledge with them when they retire. Investing in a modern ERP can help address this challenge by making it easier to find qualified employees and onboard them easily, while preserving the knowledge of more senior employees.
For a more in-depth look at how to solve the industry’s toughest challenges, download our eBook, Navigating the Sea of Disruption in 2020 and Beyond.