TMCnet Feature
January 25, 2023

Top 4 Challenges Food & Beverage Companies Have to Address in 2023

Nowadays, if the food & beverage businesses want to stay afloat, they should have a digital presence for online ordering and delivery services. Modern technologies provide companies with all the required software to achieve this goal. But despite the technological revolution, the food and beverage industry faces significant issues and challenges.

Find out these challenges and how the PLM software can boost overall efficiency.

4 Concerns to Expect in 2023

#1 Increased costs

Food and beverage businesses are twice as likely to face additional transportation costs. Another item of extra cost is expensive natural colorings and aromas designed to replace cheaper artificial ones. Because today, consumers are paying increasing attention to what they eat and drink.

#2 Stringent regulatory control

An enormous web of regulations has always been a part of cross-border trading, but in recent years, the regulation volume has been increasing in arithmetic progression. This significantly complicates supply chains, especially for larger multinational businesses.

For example, the FDA's Food Safety Modernization Act (FSMA) expects full transparency of how products are made and where they are in the distribution and consumption layer. As a result, legal and regulatory teams have to spend thousands of hours manually monitoring laws and regulations. 

#3 Supply chain disruptions

More complex manufacturing methods, increased ingredients required for food & beverage production, and constantly shifting consumer demands make supply chains longer and more splintered, with products traveling through more facilities and heading in many different directions before reaching consumers.

In turn, shortages or irregular supply puts a lot of stress on manufacturers and retailers, who now have to manage their inventory better and diversify their supply chain.

#4 Consumer preferences

Consumer preferences can quickly change, mainly when the industry focuses on all the other challenges. It may seem like extra trouble to keep up with these demands.

Nowadays, the food & beverage industry is a competitive marketplace where shelf placement and brand recognition play a decisive role in consumers' decision-making. And consumer pursuit of sustainability and eco-friendly alternatives can create additional challenges for businesses. 

The Indispensable Role of Efficient Product Management

Nowadays, manufacturers are shifting to a more proactive process, product, and plant management model to enhance competitiveness. To achieve this, many businesses use product lifecycle management solutions.

Product innovation management, package development, and regulatory and quality control are only some of the PLM software benefits. Moreover, PLM features allow for the following:

  1. Integrated document management.  Retain all records associated with the R&D process from concept to production ramp-up, automatically optimize manufacturing expenses, and analyze formulation costs.
  2. Cross-functional collaboration. Increase work efficiency by combining engineering data with manufacturing information and boosting company-wide cooperation.
  3. Consistent updates. In real time, update data and manage documentation for product formulation, ingredients, packaging, etc. With PLM software, you can centralize and connect directly to each product allowing tracking changes over time.
  4. Recipe version tracking. Tracks recipe version changes, including all costing elements, ingredient declaration, and nutritional analysis. Analytical data for each ingredient is carefully stored, can be migrated to recipes, and turned into label sets for back-panel label reports.

How SAP (News - Alert) Can Help

To stay competitive in today’s market, businesses must transform their product lifecycle. But digital transformation isn’t enough for business success. Companies need a reliable digital strategy and buy-in across the supply chain.

SAP PLM software provides businesses with various customizable dashboards and key metrics to improve supply chain transparency and ensure efficient decision-making. It can help prepare for changes in demand and micromanage the company.

SAP PLM is suitable for companies that need high-quality in-person service, increased transparency of supply chain processes, and reliable e-commerce platforms.

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