All good things must come to an end, as the saying goes.
If you’re working in the food manufacturing industry, you better hope that isn’t true. The sector has experienced unrivalled success over the past few years, but increased competition and rising energy prices could signal a halt in growth. Companies will have to review their operations in their entirety to understand where they can find savings, and perhaps how business management software could position them to prevail in the future.
A look at the industry
There isn’t an executive in the country who hasn’t heard about Amazon making a move to the Australian market. The e-commerce giant is stepping into food manufacturing and distribution, and the new competition will likely squeeze small- and medium-sized enterprises out of their comfort zones.
Maintaining success in food manufacturing isn’t clear-cut.
The answer as to how to maintain success throughout all of this isn’t so clear-cut, according to Jeff Roster, vice president of research firm IHL.
“Everyone’s game just needs to get tighter and that battle for the customer becomes all the more wp-contentarent,” Roster told CNBC. “This is brand spanking new territory we’re smashing through here.”
The Commonwealth Scientific and Industrial Research Organisation (CSIRO) believes innovation in the supply chain and changes to how businesses operate, among other new ideas, will be a foundation for many companies. This includes shifting costs to accommodate more expensive wholesale energy prices.
Get on the right track today
Organisational decision makers will have to draw a fine line between saving the enterprise money, and putting it at a disadvantage. There are only so many budget cuts you can make before the ramifications begin to impact the very things that made the company great in the first place.
Because of this, one direction to look towards in terms of improving profit margins would be internal operations. This covers aspects like stock control, inventory management or even bookkeeping. If still on legacy systems like Excel spreadsheets (or even pen and paper), an organisation could find themselves vulnerable to costly mistakes and missed opportunities in terms of productivity.
Moving all the day-to-day routines to a business management platform can free up valuable time for staff members to cover other pressing tasks. Accounting, for instance, can be streamlined in a bid to cut out any potential errors, while also ensuring the company’s finances are always accurate and up to date.
Interest in learning more about how to keep your company competitive in a tough food manufacturing industry? Contact an Advanced Business Manager representative today for more information.