Supply Chain Impacts and Challenges

The food and beverage industry is transforming and becoming more oriented towards the emergence of new production technologies and trends of healthier habits. Such developments are revolutionizing the market and shifting focus to consumer health. This comes off the back of using new technological platforms. Consequently, platforms are constantly influencing and transforming consumer buying habits and the supply chain.

This article is the third in a series from Sebastian Jaimes about the transformation of the food and beverage industry. Connect with Sebastian here. 

Supply Chain Impacts and Challenges 

The role of the supply chain is key to the optimal development of businesses. However, it’s critical when developing efficient models to maximize profitability and guarantee the sustainable management of a company’s operations. Supply chains are looking towards a logistics ecosystem that is faster, more flexible, more personalized, and more efficient. Therefore, technology and process automation become determining factors for every business in the search for internal efficiencies. These are reflected in competitive advantages that can be transferred to the end user, through a quality product at an appropriate price. Ultimately, 70% of a product’s cost is attributed to its production process and its logistics chain. Now, there are numerous fundamental aspects that organizations focus their resources on. The ultimate goal here is making their presence in the market stronger.

Areas of Focus
  • A solid network of suppliers.
  • Adequate planning.
  • Adaptation of information systems and technologies to save time and costs.
  • New logistics platforms.
  • Distribution centers close to areas of influence.
  • Improvement projects in last-mile distribution.

Approximately 94% of Fortune 1000 companies have been impacted by COVID-19 with less or greater intensity depending on their sector. But the key here is that many companies executed aggressive plans with a vision of cost and expense efficiency. For example: consolidation of suppliers to obtain better prices and reduce management costs. Others include optimization of inventory levels with just-in-time models and the development of key partners for core business operations.  

Ultimately, the ideal would be to achieve a supply chain that is as resilient as it is efficient. But to attain this goal, the adopted cost management strategy must align with the strengthening of the entire operation. This is so that it is balanced, with strategies that mitigate the risk of frozen operations in the face of threats such as COVID-19. 

Hiring Challenges – Trends 

It is a dynamic and perhaps a turbulent moment for many organizations, with young companies entering the market in a disruptive manner. These companies are threatening traditional corporations with new, fresh business models. They’re also offering value in terms of new market trends and variables. Consequently, this is seducing professionals and persuading them to leave their long careers behind to start new and challenging projects. As a result, this is clearly impacting recruitment trends in the United States and making talent retention and attraction increasingly complex.

In supply chain functions, there is a constant need for profiles oriented towards the optimization of resources. These are leveraged in technology and are strategically capable of generating value in different operational processes. Such profiles understand that the business must seek efficiencies that reflect an adequate final high-impact product or service. Therefore, this helps in generating high levels of profitability for employers but also in marking a differentiation point in the market.

The dream here is to build a team of dynamic, versatile, flexible profiles, who are at the same time adaptable to change. In conclusion, they should have comprehensive knowledge of the chain and with a business vision oriented towards the generation of value.

What Comes Next?

We are currently experiencing a talent drain, since levels of loyalty and commitment are low if there is not a solid project involved. Moreover, such projects would allow the employee to develop projects that result in a high impact on their community. Some of the variables generating change in the motivators of supply chain professionals are:

  • The social and environmental factors that companies today give to their production processes.
  • Flexibility and autonomy provided to their employees, hand in hand with transferrable benefits.
  • The level of empowerment that a leader is capable of transmitting to their work teams.
  • Their orientation to results.

The use of technology requires organizations to generate a culture of change and innovation, as well as instill a desire for evolution within their collaborators.

Get in Touch

Be sure to follow Proco Global on LinkedIn to stay up to date with all the latest trends and developments across the supply chain. To get in touch with Sebastian Jaimes or another consultant, click here. 

Share this insight:

Download the full report

Receive a complimentary copy of our The New Food Order report by clicking the button below to download the full report.

Download Now