ManufacturingApril 17, 2019

When a disconnected meat supply chain doesn’t cut it anymore

A majority of meat manufacturers still struggle to realize the full potential of their operations
Avatar Gijs Hofman
meat supply chain

Today, a majority of meat manufacturers still struggle to realize the full potential of their operations. The main culprit? A disconnected supply chain, which leads to a lack of supply chain visibility for all stakeholders in the company.

So what do meat manufacturers need in order to increase visibility and make smarter decisions? Let’s take a look.

A single source of truth

Planning is a two-way street. To create plans for each process in the supply chain, your planning team needs data such as demand forecasts, raw material supply, processing capacity, cold store availability and stock outflow. Lack of information results in poor plans that deliver subpar results in processing, warehousing and shelf-life planning.

Planning using one system brings demand, supply and inventory planning together, which offers visibility across your supply chain. By removing data silos and streamlining previously siloed processes your planners will have the answers to questions such as:

  • What are the options available in order to meet the service level agreements (SLAs) with retailers?
  • How much remains are there based on current demand and supplies?
  • Can we still fulfill this order?
  • How much buffer do we need to have for the next day?

Without visibility, your customer service team will not be able to make promises to customers with confidence. They cannot give an immediate answer to a customer who wants to know what is available and when it can be delivered. When promises are made but orders are unfulfilled, customer confidence plummets.

Real-time information

A fully integrated planning system that processes fast-changing data allows your sales team to confirm if an order can be fulfilled and reserve the necessary materials. They will have:

  • Instant visibility into the perpetual inventory
  • Precise access to the alternative cut path’s potential inventory
  • Optimized production plans for higher margins

Knowing exactly what is available at any time and at all levels gives your sales team a clear picture of what can be sold and delivered. Shortages can also be spotted and addressed. Your planners will be able to:

  • Determine availability to promise (ATP) and capability to promise (CTP) quantities in real-time
  • Link order acceptance to the production schedule

Better agility to respond to the market and disruptions

The key to building an agile supply chain is to have the right information at the fingertips. Just as important is the ability to immediately propagate and understand the impact of events across your entire supply chain.

Minimize the side-effects of disruptions by continuously optimizing and re-planning schedules, while keeping a constant eye on the end goal. With the right system, your managers can quickly respond to changing market conditions and customer orders, and even unpredictable consumer preferences. Creating what-if scenarios helps them find the right mix that will boost profits and other relevant business KPIs.

In today’s business environment where things can change at a moment’s notice and customers expect faster turnarounds, planning agility gives your company a clear advantage over the competition. Offer high service levels while keeping inventory levels low. Sell the right products at the right prices, time and freshness level, always.

What does a fully connected supply chain look like? Only when a supply chain is fully connected can you gain a strong competitive edge and thrive in any market condition. We at DELMIA Quintiq have a vision of what the fully connected meat supply chain looks like.

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