Six methods of optimizing inventory management in food production industry

Why inventory management is important ？

The novel coronavirus affects food and beverage manufacturing supply chains around the world , Blockades around the world lead to fluctuations in customer demand . Consumer demand for certain goods suddenly soared （ For example, fast food that can endure storage ）, Forcing food manufacturers to increase supplies and adjust inventories . However, the commodities of food production enterprises have their own characteristics , Inventory is usually perishable , With shelf life requirements , This requires the supply chain management to ensure the delivery of products , And ensure the safety of consumers .

in addition , Food and beverage industry due to its industry particularity , It is directly related to the national economy, people's livelihood and people's health , Generally highly regulated , This means that food needs to meet health standards , And it certainly needs to be removed before the stock age is old enough to cause harm to consumers .

An effective food and beverage supply chain requires excellent inventory management - Supervise the flow of goods from the manufacturer to the warehouse to the point of sale . It includes raw materials 、 Partially Prepared Products 、 Storage and processing of finished products . It is supply chain management , And any business involving the purchase or sale of products . Improving inventory management requires strengthening the control of warehouse operations and their internal physical inventory .

How can we improve and optimize the inventory management of the food production industry

Saijie management experts give the following suggestions ：

1. Evaluate your current process
2. Perform routine inventory reviews
3. Understand customer behavior and leverage big data
4. Optimize inventory replenishment
5. Ensure faster product recalls
6. Reduce food waste

1. Evaluate your current process

Before the enterprise makes improvements , Need to fully understand the business reality of the enterprise .

Effective inventory management is goal oriented . To enable the enterprise to focus on specific aspects of the system that need to be improved , We need to understand the role of each link in the chain , Managers need to consult with other members of the team , To identify potential problem areas and start from there .

In food and beverage manufacturing , You can focus on the following areas when reformulating the inventory process ：

• Improve inventory visibility ： Coordinate production by improving visibility and control 、 Procurement and logistics , Thus minimizing overproduction .
• Manage requirements ： Use demand planning and modeling tools to avoid excessive inventory , To support instant production .
• Process optimization ： By providing employees with the required access , Simplify decision making and approval through automation , Eliminate waiting .
• Reduce cargo movement ： Solve transportation problems through timely production and logistics , Avoid unnecessary transfer of goods from one place to another .
• Focus on the problem ： Prevent over handling , And focus on actions that only create value , For example, create a bill of materials .
• Data support ： Prevent unnecessary movement by providing data , Make sure your machine is at its most efficient 、 The most productive and effective way to work .
• Focus on the process ： Implement controls to eliminate defects , Confirm the position of the deviation , And stop them at the source .

2. Perform routine inventory reviews

An important part of inventory management is simply knowing how much inventory you have . Food and beverage items may be lost after entering the warehouse , Stolen or damaged . It's inevitable . Usually , Lost items will not be reported , Unless the person who needs it finds out in time , Solve this problem by regularly checking your physical inventory to ensure the accuracy of records .

3. Use big data to understand customer behavior

big data It can improve the ability of enterprises to make accurate forecasts , This can greatly improve inventory management . Throughout the year , Customers' buying habits of food and beverage are often different . Some of them may be more obvious , For example, it is related to seasonal holidays such as Spring Festival and traditional festivals , But sometimes without data analysis , Enterprises will not be able to capture these changes . In order to avoid over or under stocking , Enterprises can rely on data technology to store the right inventory items at the right time .

• Track how often you restock certain items , And try to identify trends or patterns - There may be seasonal or other external factors that will affect your product flow .
• Please note the time period when customers order more and less . A firm grasp of the customer's behavior will enable you to maintain a leading position in under production and over production , So as to maintain the correct inventory balance .

Big data can improve the efficiency of inventory management by marking problems that you may not even know about .

4. Optimize inventory replenishment

In the past , You may have to manually check inventory , And make a decision to reorder based on speculation . Now? , Technology allows you to analyze trends , These trends can reveal which products are not sold , And remind employees when they need to start reordering more specific products . In the peak sales season , This is very important for the smooth flow of products . Food retailers always want to reduce delivery time , Replenish daily according to sales and forecast demand , This means that supermarkets can maximize the shelf life of food .

5. Ensure faster product recalls

Mishandled product recalls can damage your business reputation , Sometimes it is irreversible . We need a perfect quality traceability system . If not handled properly , It may cause permanent damage to your brand , So you need to act quickly and ensure minimal damage . To gain access to real-time data , You must store data centrally , This allows you to track data from the farthest end of the supply chain , Through the production process and data from customers .

6. Reduce food waste

Now customers have a stronger environmental awareness of the problems caused by food waste . It is worthwhile to invest in inventory management techniques , These technologies can reduce excess inventory and disposal , Ultimately reduce the waste of perishable items .

The first option is to require retailers to share data , This data can not only help you make production plans , Improve efficiency and quality , It can also promote “ The green revolution ”. Besides , Also investigate how to reuse the remaining products in some way , For example, for temporary Commodities , Supermarkets can sell at a discount , Or use it for other purposes .

Add ：

Sage X3 ERP Support routine inventory counting 、 A variety of inventory taking methods, such as sustainable inventory taking , Replenishment strategies can be set according to products , At the same time, the batch number and serial number are tracked , It can guarantee the quality traceability requirements of products , Have a complete shelf life management plan for the food and beverage industry ： Set the shelf life reference date 、 Inventory recheck 、 Quality update 、 Lot number update 、 Expired commodity control, etc .