Food Logistics serves the entire Printing Industry with targeted content for the large commercial print segment.
Issue link: https://foodlogistics.epubxp.com/i/295107
providing information for supplier verification, compliance and registration with the Food and Drug Administration (FDA). Compliance, particularly with the FSMA, will be a daunting undertaking for compa- nies operating with multiple steps in their production processes and running outdated legacy technology or manual systems. The Path Forward to Growth For food and beverage companies, the road map to growth may include all or part of some of the strategies highlighted. "Many companies know the strategies they would like to implement to get on the road to growth, they know their business goals, but they often don't know where to start or how to find the right road," said Chris- tian Hutter, Senior Vice President, Manufac- turing/Distribution, at Junction Solutions. Many companies, for example, still rely on manual spreadsheets for tracking and man- aging many of their critical business activities including food safety compliance. Perhaps the biggest challenge in executing growth strategies is the poor integration of a company's enterprise systems, which fun- damentally impairs visibility in an enterprise. Most companies operate numerous disparate systems and databases, all running on a mix of legacy, Windows and Web-based platforms with aging and complex architectures. "All too often I see companies trying to operate dozens of disparate systems with a glut of integration connections which resem- bles a modern day Tower of Babel. Not only are these disparate systems costly and chal- lenging to support and upgrade, but also vir- tually impossible to fully integrate efficiently," Hutter notes. A company's complex web of under- performing legacy systems also can't solve today's greatest IT challenge: harnessing Big Data into timely, meaningful and action- able information that promotes operational efficiency, cost reduction, a transparent supply chain, in-depth analysis and informed decision making. This requires a flexible and scalable ERP system, which offers specific functionality addressing how a food company does business, as well as seamless integra- tion with a company's quality system, busi- ness intelligence/analytics, warehouse man- agement system, and other key enterprise applications. Next Steps Technology will only perform at its highest level if a company has the appropriate stan- dardized and efficient processes in place. Since food companies' core competency is not IT or change management, making deci- sions in these areas can be overwhelming. So, before investing in any new technology or changing business processes, companies should work with their system integrators or IT partners –preferably consultants with extensive expertise in not only IT but also in the food and beverage and CPG industries – to evaluate the performance of existing systems and what new functionality will be required to execute change management effectively. Once the IT partner delivers its strategy and recommendations, some food enterprises may choose to wait because of potential risks in any enterprise implementation or the costs. Contrary to old perceptions, today's new technology, especially an ERP system, is easier to implement and delivers a lower total cost of ownership compared to years ago. In reality, strategy will only take a com- pany so far in reaching its growth goals. As microcomputer pioneer Gordon Eubanks said, "Strategy gets you on the playing field, but execution pays the bills." In this case, waiting on the sidelines, even with a plan in hand, will not even put a company on the road to growth, or even stay ahead of the competition. S P E C I A L E D I T I O N 22 A P R I L 2014 ❯❯ FO O D LO G I S T I C S W W W . F O O D L O G I S T I C S . C O M Buying online is here to stay – but it's not the only way Whether it's via home delivery, click and collect in-store or via a pick-up point/drive, ordering online continues to grow unabated year on year. With the emergence of new players in the retail space, new services or simply to respond to the growing demands of today's consumers, these new methods of gaining access to goods are here to stay. And like many innovations, these online services are often reported to be growing faster than store traffic. However, experience shows us the contrary - we are now seeing how traditional and online shopping complement and inform each other's future development. From online to the geolocated click Geolocation isn't new – it's existed since the first smartphones featured GPS or Bluetooth functionality. What's new is the wide-spread deployment of Geolocation as well as the proliferation of smart devices within households that is motivating more retailers to launch pilots. Shopping malls will increasingly look to geolocation as a way to engage regular shoppers with the retail brands located within a mall via smartphone applications. For example, as you wander through your typical shopping mall, expect to be alerted in real-time as you pass a store that your online order is available to collect early, or expect to receive an 'instant' coupon valid for the next 90 minutes. Geolocation moves to the point of sale Geolocation is also being trialed at the point of sale to encourage engagement and ultimately purchase. Currently being trialed in Apple stores, the iBeacon technology enables shoppers to be located as they move around the store using Bluetooth. If the customer is viewing the laptop display – they will receive information on the new range of laptops. If they go to look at tablets, they'll receive an offer for product demonstrations available by replying to the message. Also expect grocery click & collect to continue to evolve. Imagine driving past your preferred collection point when you receive an alert to say that "your usual order can be ready to collect within 1 hour, please confirm." As we look ahead into 2015, the possibilities are endless. Retailers will win, but so will consumers as the shopping experience becomes more digitally engaging, personal and targeted thanks to the combination of geolocation and retailers' initiatives. What's In Store For Click & Collect? ....E-commerce In the grocery segment, online shopping is heating up as traditional grocers and online-only competitors seek to attract Internet shoppers and equally important, optimize supply chain strategies to make it profitable. Considering that delivery charges are the leading barrier to online grocery shopping, this is a tall order. UK's Tesco is getting more aggressive with discounts and other incentives to make its Delivery Saver scheme more affordable and attrac- tive to its 190,000 subscribers—a customer segment that Tesco views characterizes as an "enormous opportunity" for the grocery, according to the com- pany's group multichannel director Robin Terrell. In fact, Tesco plans to eventually offer its click & collect service free of charge in the future, said Terrell. By Donal Mac Daid, Symphony EYC FLOG_20-23_0414 CS Roadmap.indd 22 4/4/14 10:34 AM