Page 35 - Food & Drink Magazine April 2020

product, beginning with R&D and carrying through to product testing and pricing strategies.
A modern PLM solution will help the organisation simplify the complexity of revamping packaging, allowing managers to break tasks into steps for easy project management. The tool will also empower designated people to access packaging specifications, batch formulas, and research data around shipping needs so they can stay informed about transition progress and projections for new product launches.
The ability to access and share data helps individuals to collaborate and document strategy decisions, dynamic pricing algorithms, and go-to-market tactics, details which will be important for future reference.
Recipe and batch specifications may need to be adjusted to accommodate changes in packaging and serving sizes, and how the product will be prepared. Eliminating protective plastic layers may change the shelf-life, the freshness, or appearance of the food, calling for refinements in the recipes.
ERP solutions purpose-built for the food and beverage
industry contain the functionality needed to refine such adjustments, guaranteeing consumers will be happy with the taste, aroma, and texture of their purchases.
Predictive analytics
will be extremely helpful
as manufacturers must consider costs of alternative packaging options and understand the bottom-line impact of new packaging resources. Changes to internal processes, like re-tooling machinery, as well as shipping ramifications will need to
be considered carefully.
Managers will want to compare “what if ” scenarios
they think through choices. Modern analytics, driven by artificial intelligence and machine-learning, will be critical to devising new strategies to align with the price-point consumers are willing to pay.
A connected supply
chain network will also be more important than ever
as the manufacturer will likely need to source new packaging resources, from new product containers and lids, to new types of material handling equipment and new shipping containers
that can protect breakables or control temperatures.
A modern supply chain
management solution will be valuable in forging new relationship with reliable vendors and deciding new shipping routes.
As consumers become more vocal about their expectations for sustainable packaging using less plastic, manufacturers will need to re-think their product lines and consider new packaging resources.
As the food and beverage industry makes this transformation, numerous internal process and go-to- market strategies will come into question. This is an opportunity to take a holistic view of the environmental impact of the brand.
Although the issues are complex, many affecting profitability, modern software technology will help simplify the decision- making, collaboration, and network-building among potential vendors.
This issue isn’t going to go away soon. Manufacturers that act now can be part of the solution, rather than partoftheproblem. ✷
as
LABELLING & PACKAGING
✷ ABOUT THE AUTHOR
Jarrod Kinchington is
Infor ANZ managing
director. He has more
than 20 years’
experience working
closely with business
and IT stakeholders in a number of industries including telecoms, utilities, financial services and public sector.
www.foodanddrinkbusiness.com.au | April 2020 | Food&Drink business | 35