Food and beverage manufacturers—like everyone else—hoped that things might return to normal as the pandemic wound down. That has not been the case. Persistent national and global problems such as labor shortages, energy price spikes, supply chain disruptions, and rising inflation mean that the business environment is unsettled and may remain so for some time.
According to Global Trade Magazine, March 2020 simply marked the beginning of unprecedented times for businesses around the world. “The COVID-19 pandemic has had deep socio-economic implications for the food industry. It has imposed sudden shocks across the food supply chain, affecting farm production, logistics, food processing, and market demand for food items.
For food manufacturers, such problems may translate into delays in production and rising cost all around. A recent report by the U.S. Chamber of Commerce enumerates the pain points. “The cost of eating out at a restaurant is about 4.7% higher than it was at this time last year … while grocery store and supermarket purchases are 5.3% higher than a year ago. To put that in perspective, during the decade prior to the start of the pandemic the average annual increase in grocery store and supermarket purchases was only 1.3%.”
One bit of good news: many of the problems food manufacturers are facing can be alleviated with the right technology—such as a single source of truth model.
How SSOT can help you manage current challenges
According to Food Manufacturing, solving food supply chain problems requires just such innovation.
At most companies, data exists in various systems throughout the organization. When such information is partitioned, or siloed, it can be difficult to make smart, data-driven decisions. Many modern businesses are consequently moving toward a single source of truth model.
In an SSOT environment, data is aggregated from many systems to a single location. Such a model offers visibility across the product lifecycle, makes traceability and optimization easier, and boosts collaboration.
Trace One Devex PLM eliminates silos and boosts efficiency
Formula-based product lifecycle management software, including Trace One Devex PLM, serve as a SSOT for companies. For one thing, Trace One Devex PLM is cloud-based. It’s difficult if not impossible to reap the benefits of a SSOT when systems reside on-premises, because on-prem data inevitably winds up in silos. Trace One Devex PLM eliminates these by integrating with other internal and external systems and introducing traceability.
As a senior executive at a Belgian maker of margarine, culinary oils, and frozen baked goods explained, “We expected this new PLM system to make our operations more efficient by having a central place to store all of our recipes, simulate ingredient changes, and create more transparency in the recipe development process as we work with suppliers. And that’s what’s happened. The company’s strategic investment in Trace One Devex PLM has led to more innovation, shorter product development cycles, faster time-to-market, and a better overview of where recipes are in the product development process.”
Position your organization to adapt, compete, and win
In today’s unpredictable and increasingly volatile business environment, food manufacturers need every advantage they can get to stay vibrant and competitive. Evolving enterprise processes to a SSOT model is the way of the future, and Trace One Devex PLM—software built specifically for food and beverage manufacturing—can make the journey easier every step of the way.