
If you’re supplying foodstuffs to the retail, hotel or restaurant trade, you know that consumer demands (and therefore those of your customers) are constantly evolving. Your business system should be central to keeping abreast of those demands, and ahead of your competitors. Here’s a useful guide to what’s happening in your industry and the growing importance of technology.
1. Consumers are increasingly health-conscious but also busier than ever. More retail food outlets are offering healthy-pre-packaged meals that are convenient and tidy to eat on the move. Some other points to consider:
• Eating healthy, locally-produced food is now a standard practice of many consumers.
• Non-traditional ingredients sourced overseas will continue to prevail, especially due to cost concerns. Inspection and labelling standards are stricter as a result.
• Studies of fast-food outlets have revealed excesses of highly processed, non-nutritional ingredients. “Less processed, more natural” is a growing catch-phrase in the retail food sector.
• Consumers are also more morally conscious, ie: they support Fair Trade ideals when purchasing such products as tea, coffee and chocolate.
• Animal welfare in the food production cycle is a serious public concern. Battery-farmed meat, eggs and other products are frowned upon.
[Source: http://www.newswise.com/articles/food-technology-magazine-editors-share-top-10-food-trend-predictions-for-2016]
ACTION ITEMS:
• The flexibility and resilience of your supply chain is crucial. Talk to your customers about their product requirements, to be sure you’re still supplying them the goods that their customers want.
• Determine whether your business system is enabling rapid communication with your suppliers, so you can quickly source new products, or new suppliers, if necessary.
THE ROLE OF ERP:
• Tracking all orders from placing to delivery and sourcing products from national or global markets – [http://www.greentree.com/sales-and-delivery-software].
• Providing accurate costing through automated calculating of foreign exchange rates – [http://www.greentree.com/financial-management-software].
2. Technology plays an ever-growing role in the supply chain and in consumer choice – especially with the widely-accepted use of mobile devices, such as smartphones and tablets.
• Increasing dependency on technology and consumer interaction with it continues to be important.
• Consumers can now check product ingredients and other related factors while shopping, using their smartphone or tablet.
ACTION ITEMS:
• Is your website mobile-friendly, ie: can customers easily get information about your products using a portable device? (See e-commerce, below.)
• Would your sales and/or distribution staff be more efficient if equipped with mobile devices that can access information held within your ERP System?
THE ROLE OF ERP:
• Empowering staff, saving time and money, and providing better service by enabling them to place orders, close sales and access supplier information on portable devices [http://www.greentree.com/mobile-solutions].
3. E-commerce is more than ever demanded by both suppliers and customers. Shopping online is now common throughout the developed world, although the food sector has been slower to adopt. U.S. e-commerce sales grew 15% in Q3 2015 alone, and eMarketer estimates that global e-commerce sales will surpass $3.5 trillion, or 12.4% of total retail sales, within the next five years.
• Supermarket chains often demand that their wholesalers are e-commerce enabled if they want to do business.
• Consumers enjoy the convenience of being able to go online to order groceries, or specialist items such as organic and gourmet products.
[Source: http://www.foodindustries.com.au/8-major-challenges-facing-the-food-and-beverage-industry-in-2016]
ACTION ITEMS:
Would your business benefit by adding e-commerce functionality to your website, enabling customers to examine your product lists, place orders and make payment?
THE ROLE OF ERP:
• Providing secure, reliable e-commerce functionality [http://www.greentree.com/webstore-software].
4. Food safety concerns are higher in consumers’ minds than ever before. Every day, the media contain stories about scientific tests demonstrating the health risks associated with some ingredients, especially in processed food
• Genetically modified organisms (GMOs), irradiated foodstuffs, preservatives and artificial colouring and flavouring are all areas of concern.
• Consumers feel empowered when they have ready access to information about food ingredients, labelling, storage and handling.
[Source: http://www.newswise.com/articles/food-technology-magazine-editors-share-top-10-food-trend-predictions-for-2016]
ACTION ITEMS:
• Does your website offer food safety information to customers?
• Do you have up-to-date occupational health & safety information available to your staff?
• If you distribute raw products, such as nuts and grains, how confident are you of compliance with such requirements as quarantine and contamination regulations?
THE ROLE OF ERP:
• Quality control ensures compliance and traceability [http://www.greentree.com/quality-control-software].
• Approvals & Alerts ensures checks are carried out before product is released and that safety issues have been addressed [http://www.greentree.com/approvals-and-alerts-software].
5. Growth and going it alone:
• More and more businesses are adopting aggressive growth strategies, including consolidation with other firms to provide more services and grow market share. This can bring technology crises when legacy systems crack under increased pressure.
• At the same time, small, independent firms determined to follow their own path need business systems that are affordable but offer enough functionality to keep them competitive.
ACTION ITEMS:
• Is your present business system flexible enough to absorb more customers or even new companies?
• Is it capable of keeping you abreast with, or ahead of, larger competitors?
THE ROLE OF ERP:
• To have the capacity for rapid expansion [http://www.greentree.com/blog/economic-growth-and-technology]
Need help? We’d be happy to discuss your current situation and your options for going forward at any time – Our team can be contacted on 1300 583 097 or marketing@endeavouraust.com.au.
Alternatively for more information, including case studies from the food and beverage industry please visit our website.