The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

With current economic uncertainty, high inflation levels and increased raw material and energy prices acutely impacting the food and beverage industry, it is no surprise these are top concerns for many companies. How can you then maintain profitability when the cost of doing business is at an all-time high? When the market is throwing new challenges at your business from all directions, many organisations opt to reduce spending and approach decisions with caution. This may not, however, be the best course of action. Investing in the technological foundation of your business is the key to helping you deal with the impact of economic pressures. 75% of food and beverage manufacturers who responded to a research survey from IDC said they unlocked improvements across multiple operational KPIs due to their investment in digitalisation. Around half of them anticipated further improvements in the future. Achieving digital maturity in your business The answer to maintaining profitability despite external cost pressures lies in the digital maturity of your organisation. Your digital maturity is measured by looking at how prominently digital features in your overall strategy, and your ability to respond and adapt to market disruptions or emerging trends. Interestingly, IDC’s research found ‘digitally mature’ companies are better prepared for uncertainty and disruptions, including economic shocks. This has not been unnoticed by the industry, with 78% of UK businesses stating they will be increasing or maintaining their spend on software solutions this year, despite inflation and economic concerns. Investing in industry-specific ERP to mitigate risk, reduce costs and increase revenue In a challenging marketplace, it is encouraging to see light at the end of the tunnel through digital solutions, such as Enterprise Resource Planning (ERP) platforms. Aptean Food & Beverage ERP is one such option. Its flexible and secure cloud-based system helps food and beverage companies respond dynamically in a fast-moving environment, reduce production costs and increase margins. As it has been developed specifically for the food and beverage industry, it contains the features and functionalities required to improve resilience, lowering the impact of external cost pressures on areas including revenue and profit. Aptean has identified three key areas where our ERP can help lessen the impact of economic challenges on your business:

1. Mitigate risks There are many risks of operating in the food and beverage industry so having full, real-time visibility across all operational areas is vital to helping you deal with issues as they occur, and make strategic decisions to improve processes, efficiency and supply chain management. One example is quality control, seeing your quality check data in real-time can help you rectify issues before your product leaves the factory, reducing the chance of recalls.

2. Cost reduction Costs are rising, and being able to reduce expenditure wherever possible is key to helping your business overcome economic challenges. Wastage is one area where you can make cost savings, from keeping track of expiration dates to ensure ingredients are used in good time to implementing automation within processes to free up staff from manual tasks.

3. Increase revenue Growing your earnings and share of market is crucial to help drive growth regardless of market conditions. The ability to spot opportunities for improvement or development with increased data visibility is only half the battle, you also need to be able to pivot and implement new strategies quickly to truly capitalise on this. Whatever your business priorities and state of the marketplace, being able to keep key costs under control is essential to help you remain competitive, adapt to challenging circumstances and protect your profit margins. Find out more here.