Inventory optimization solutions help food and beverage companies face industry challenges
The need to balance supply with increasingly varied demand is more critical than ever before. Food and beverage brands, manufacturers, and distributors must optimize inventory levels to have the right product variety and amount in the right place at just the right time. All of this must happen to guarantee sales and make revenue goals.
However, there are hard-to-determine variables to maneuver:
- New product adoption
- Ability to sync production with demand and capacity
- Demand volatility by trend, fad, and season
- Ability to complement time-series forecasts with sales-team knowledge
- Disparate or unintegrated data
- Sourcing, stocking, and ordering
- Omni-channel sales and fulfillment
Commodity price volatility, regulatory disparity, and tightening expiration constraints make it difficult enough to source, produce, and deliver at a profit. Add to that supplier and food safety risk and you’ve got a day in the life at Food & Beverage, Inc.
Indeed, these producers operate the most critical juncture in the food value chain, transforming globally-sourced farm commodities into consumer finished goods. Along the way, they face constant exposure, upstream and downstream, to market volatility and regulatory pressure.
Spreadsheet models lead to siloed planning efforts, multiple forecast versions, and a large quantity of labor hours spent formatting documents. Vanguard Software’s inventory optimization solutions provide prescriptive analytics to enable companies to unify plans around forecasting.
Our customers work on a collaborative cloud platform that provides the tools to optimize policies and decisions around selling (and delivering) vast arrays of SKUs. Most start their investment with forecast automation for improved accuracy. They want a system that lets them forecast by customer product line, SKU, or even distribution channel. From there, many also use the advanced modeling and simulation capabilities pre-built into the platform. In addition to channel management and optimization, these capabilities are essential to seasonal planning, market agility, sales growth, and profitability.