In the dynamic landscape of the food and beverage industry, where margins can be tight and consumer demands ever-changing, maximising profits requires a strategic approach to supply chain management. 

This blog explores three key moves that can significantly impact the bottom line by addressing inefficiencies, mitigating risks, and fostering sustainable partnerships.

‍

1. Identify and Address Inefficiencies in Real Time

Efficiency is the backbone of a well-functioning supply chain, especially when dealing with short-shelf life products. Utilising cutting-edge technologies such as AI-powered supply chain planning, real-time demand forecasting, IoT sensors and data analytics can help businesses monitor their supply chains in real-time. 

Implementing digital tools allows for the swift identification of inefficiencies, such as delays in transit, storage issues, or production bottlenecks. 

“According to a recent industry report, companies leveraging real-time data analytics in their supply chain management have experienced a 20% reduction in operational costs.”

Many prominent players in the industry intend to leverage the power of these cutting-edge technologies. One of our Q Commerce clients from the US leveraged the power of AI to implement real time price optimisation and achieved a 46% increase in revenue gain. Domino's store systems have evolved into the early stages of developing a generative AI assistant intended to help store managers save time on daily tasks such as inventory management, ingredient ordering, and staff scheduling. These technologies not only streamline processes but also provide actionable insights to make informed decisions promptly.

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2. Mitigating Supply Chain Risks:

The food and beverage industry faces unique challenges, particularly concerning the huge supplier uncertainty and the perishable nature of its products. Mitigating risks associated with supply chain disruptions is crucial to maintaining profitability. Developing contingency plans, diversifying suppliers, regionalising supply chains, and investing in robust logistics solutions are key elements in ensuring a resilient supply chain.

Embracing cutting-edge technologies like AI, ML, and blockchain has helped companies overcome supply chain risks with more resilience and agility. The pandemic was a major catalyst for the adoption of such technologies. To name an example, Nike stores in China were facing a significant decline in sales during the pandemic. The company leveraged predictive demand analytics to re-route excess inventory from physical stores to cater e-commerce sales in real-time. This helped them minimise excess inventory and bring down the sales decline to just 5% while other players suffered major losses. We at Fountain9, helped one of our key Q Commerce clients in SEA to reduce their daily average waste for perishable products by 15% with proactive inventory liquidation. This underscores the financial impact of proactive risk mitigation in the industry.

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3. Sustainable Long-Term Partnerships & Improved Practices:

Supply chains are often responsible for more than 90% of an organisation’s greenhouse gas emissions. Building sustainable partnerships with suppliers and distributors goes beyond mere transactions; it involves collaborative efforts to improve practices throughout the supply chain. For the food and beverage sector, this includes implementing eco-friendly packaging, optimising transportation routes to reduce carbon footprint, fair trade and supporting ethical sourcing practices.

Notably, leading companies in the food and beverage industry are increasingly adopting sustainable practices. This is not only driven by consumer demand for eco-friendly products but also by the tangible cost savings achieved through reduced waste and improved operational efficiency.

Recently, brands including Nesquik, Smarties, Maggi, Quality Street and KitKat have launched paper packaging. Nespresso is pioneering home compostable capsules, and Nescafé Dolce Gusto has introduced paper-based pods with its new Neo system.

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In the highly competitive food and beverage industry, implementing these top three supply chain cost-saving moves can lead to substantial profit maximisation. By leveraging real-time data analytics, mitigating risks effectively, and fostering sustainable partnerships, businesses can not only streamline their operations but also contribute to the industry's overall resilience and sustainability. 

As technology continues to advance and consumer preferences evolve, staying ahead of the curve in supply chain management remains a pivotal factor in securing long-term success.

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‍

‍

In the dynamic landscape of the food and beverage industry, where margins can be tight and consumer demands ever-changing, maximising profits requires a strategic approach to supply chain management. 

This blog explores three key moves that can significantly impact the bottom line by addressing inefficiencies, mitigating risks, and fostering sustainable partnerships.

‍

1. Identify and Address Inefficiencies in Real Time

Efficiency is the backbone of a well-functioning supply chain, especially when dealing with short-shelf life products. Utilising cutting-edge technologies such as AI-powered supply chain planning, real-time demand forecasting, IoT sensors and data analytics can help businesses monitor their supply chains in real-time. 

Implementing digital tools allows for the swift identification of inefficiencies, such as delays in transit, storage issues, or production bottlenecks. 

“According to a recent industry report, companies leveraging real-time data analytics in their supply chain management have experienced a 20% reduction in operational costs.”

Many prominent players in the industry intend to leverage the power of these cutting-edge technologies. One of our Q Commerce clients from the US leveraged the power of AI to implement real time price optimisation and achieved a 46% increase in revenue gain. Domino's store systems have evolved into the early stages of developing a generative AI assistant intended to help store managers save time on daily tasks such as inventory management, ingredient ordering, and staff scheduling. These technologies not only streamline processes but also provide actionable insights to make informed decisions promptly.

‍

2. Mitigating Supply Chain Risks:

The food and beverage industry faces unique challenges, particularly concerning the huge supplier uncertainty and the perishable nature of its products. Mitigating risks associated with supply chain disruptions is crucial to maintaining profitability. Developing contingency plans, diversifying suppliers, regionalising supply chains, and investing in robust logistics solutions are key elements in ensuring a resilient supply chain.

Embracing cutting-edge technologies like AI, ML, and blockchain has helped companies overcome supply chain risks with more resilience and agility. The pandemic was a major catalyst for the adoption of such technologies. To name an example, Nike stores in China were facing a significant decline in sales during the pandemic. The company leveraged predictive demand analytics to re-route excess inventory from physical stores to cater e-commerce sales in real-time. This helped them minimise excess inventory and bring down the sales decline to just 5% while other players suffered major losses. We at Fountain9, helped one of our key Q Commerce clients in SEA to reduce their daily average waste for perishable products by 15% with proactive inventory liquidation. This underscores the financial impact of proactive risk mitigation in the industry.

‍

3. Sustainable Long-Term Partnerships & Improved Practices:

Supply chains are often responsible for more than 90% of an organisation’s greenhouse gas emissions. Building sustainable partnerships with suppliers and distributors goes beyond mere transactions; it involves collaborative efforts to improve practices throughout the supply chain. For the food and beverage sector, this includes implementing eco-friendly packaging, optimising transportation routes to reduce carbon footprint, fair trade and supporting ethical sourcing practices.

Notably, leading companies in the food and beverage industry are increasingly adopting sustainable practices. This is not only driven by consumer demand for eco-friendly products but also by the tangible cost savings achieved through reduced waste and improved operational efficiency.

Recently, brands including Nesquik, Smarties, Maggi, Quality Street and KitKat have launched paper packaging. Nespresso is pioneering home compostable capsules, and Nescafé Dolce Gusto has introduced paper-based pods with its new Neo system.

‍

In the highly competitive food and beverage industry, implementing these top three supply chain cost-saving moves can lead to substantial profit maximisation. By leveraging real-time data analytics, mitigating risks effectively, and fostering sustainable partnerships, businesses can not only streamline their operations but also contribute to the industry's overall resilience and sustainability. 

As technology continues to advance and consumer preferences evolve, staying ahead of the curve in supply chain management remains a pivotal factor in securing long-term success.

‍

‍

‍

‍

In the dynamic landscape of the food and beverage industry, where margins can be tight and consumer demands ever-changing, maximising profits requires a strategic approach to supply chain management. 

This blog explores three key moves that can significantly impact the bottom line by addressing inefficiencies, mitigating risks, and fostering sustainable partnerships.

‍

1. Identify and Address Inefficiencies in Real Time

Efficiency is the backbone of a well-functioning supply chain, especially when dealing with short-shelf life products. Utilising cutting-edge technologies such as AI-powered supply chain planning, real-time demand forecasting, IoT sensors and data analytics can help businesses monitor their supply chains in real-time. 

Implementing digital tools allows for the swift identification of inefficiencies, such as delays in transit, storage issues, or production bottlenecks. 

“According to a recent industry report, companies leveraging real-time data analytics in their supply chain management have experienced a 20% reduction in operational costs.”

Many prominent players in the industry intend to leverage the power of these cutting-edge technologies. One of our Q Commerce clients from the US leveraged the power of AI to implement real time price optimisation and achieved a 46% increase in revenue gain. Domino's store systems have evolved into the early stages of developing a generative AI assistant intended to help store managers save time on daily tasks such as inventory management, ingredient ordering, and staff scheduling. These technologies not only streamline processes but also provide actionable insights to make informed decisions promptly.

‍

2. Mitigating Supply Chain Risks:

The food and beverage industry faces unique challenges, particularly concerning the huge supplier uncertainty and the perishable nature of its products. Mitigating risks associated with supply chain disruptions is crucial to maintaining profitability. Developing contingency plans, diversifying suppliers, regionalising supply chains, and investing in robust logistics solutions are key elements in ensuring a resilient supply chain.

Embracing cutting-edge technologies like AI, ML, and blockchain has helped companies overcome supply chain risks with more resilience and agility. The pandemic was a major catalyst for the adoption of such technologies. To name an example, Nike stores in China were facing a significant decline in sales during the pandemic. The company leveraged predictive demand analytics to re-route excess inventory from physical stores to cater e-commerce sales in real-time. This helped them minimise excess inventory and bring down the sales decline to just 5% while other players suffered major losses. We at Fountain9, helped one of our key Q Commerce clients in SEA to reduce their daily average waste for perishable products by 15% with proactive inventory liquidation. This underscores the financial impact of proactive risk mitigation in the industry.

‍

3. Sustainable Long-Term Partnerships & Improved Practices:

Supply chains are often responsible for more than 90% of an organisation’s greenhouse gas emissions. Building sustainable partnerships with suppliers and distributors goes beyond mere transactions; it involves collaborative efforts to improve practices throughout the supply chain. For the food and beverage sector, this includes implementing eco-friendly packaging, optimising transportation routes to reduce carbon footprint, fair trade and supporting ethical sourcing practices.

Notably, leading companies in the food and beverage industry are increasingly adopting sustainable practices. This is not only driven by consumer demand for eco-friendly products but also by the tangible cost savings achieved through reduced waste and improved operational efficiency.

Recently, brands including Nesquik, Smarties, Maggi, Quality Street and KitKat have launched paper packaging. Nespresso is pioneering home compostable capsules, and Nescafé Dolce Gusto has introduced paper-based pods with its new Neo system.

‍

In the highly competitive food and beverage industry, implementing these top three supply chain cost-saving moves can lead to substantial profit maximisation. By leveraging real-time data analytics, mitigating risks effectively, and fostering sustainable partnerships, businesses can not only streamline their operations but also contribute to the industry's overall resilience and sustainability. 

As technology continues to advance and consumer preferences evolve, staying ahead of the curve in supply chain management remains a pivotal factor in securing long-term success.

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