Packaging companies have always trickle fed F&B manufacturers with the next few days’ demand from their customers. This had grown collaboration in the forecasting process between players. In addition, F&B manufacturers often prepare batches of bulk first then fill or pack to their own brand and then private label brands in sequence.
Many are also shifting to a Just-in-Time approach, so finished products are created only to meet forecast demand, not in surplus or in advance. This reduces inventory and unnecessary loads on the system while boosting efficiency, speeding up product delivery, and reducing cost. A flexible ERP “recipe” module such as Bill of Materials (BOM) is critical to cope effectively with changing recipes to match ingredient availability, lean operations, and Just-In-Time, for sustainable supply chains.
For example, packaging companies who want to use recycled material in their production process without compromising the final product should be continually checking their BOM, which ensures they have full, real-time visibility and control of the quantity, quality, lead times, and cost of the materials, among other production, purchasing, and processing factors. Accurate BOM data will also help packaging companies trace and report on the percentage of recycled materials that make up the final product. Or, if design or production teams change a BOM to include recycled material, the changes are seamlessly passed on to the suppliers, and the new orders are delivered to the updated requirement, while an automated Request for Quote allows existing and new suppliers to include reused or recycled items in their tenders.
To run truly sustainable operations – without greenwashing or affecting the bottom line – packaging companies and F&B manufacturers must optimise their operations to reduce value-chain waste and enable a Just-In-Time approach. They’re also going to need accurate, real-time data for visibility of their supply chains and production processes that are fully integrated, easy to update, and guide business decisions that are aligned to the environment, regulations, and what customers want. Flexible management tools like ERP facilitate this shift while still allowing growing businesses to scale and thrive.
