How to Respond to Demand Planning Changes During COVID-19
/For food and beverage manufacturers, preparing and managing your supply chain during times of crisis is of paramount importance. And COVID-19 has certainly had a profound impact on the marketplace, with customer demand and inventory supply more challenging and complex than ever. When COVID-19 was reported, supply and demand across the globe was rattled. Challenges such as reduced cash flow and sales, short-term demand spikes driven by supply shortages, and permanent alterations to customer’s behaviour and changing food trends continue to place pressure on food and beverage supply chains.
But looking ahead, how can food and beverage manufacturers respond to these volatile demand planning changes?
1. Farm to Fork ERP System
According to the European Union, “Food systems cannot be resilient to crises such as the Covid-19 pandemic if they are not sustainable. We need to redesign our food systems which today account for nearly one-third of global GHG emissions, consume large amounts of natural resources, result in biodiversity loss and negative health impacts (due to both under and over-nutrition) and do not allow fair economic returns and livelihoods for all actors, in particular for primary producers”. This approach is part of the EU’s new proposal for a legislative framework for sustainable food systems.
By implementing a ‘Farm to Fork’ ERP solution (Enterprise Resource Planning Software), food and beverage manufacturers can ensure their business is placing an emphasis on freshness, sustainability and transparency. The software centralises a food or beverage company’s data, automates routine tasks, and simplifies the running of the business from a logistical perspective. The improved efficiency, increased data security and an ERP’s power to facilitate regulatory compliance, make it a great first step in responding to shifting demand during COVID-19.
2. Reducing Inaccurate Demand Data
Food manufacturing, traceability and demand planning software can be leveraged to gain more accurate demand data. For food and beverage businesses to thrive they need a powerful and accurate forecasting engine to work on their behalf, making accurate and useful forecasting calculations based on the available data.
3. Remember Flu-Season and the Impact of Future Pandemics
It seems sensible to remodel seasonal demand models to include the upcoming flu season and the possibility that future pandemics may arrive, which will impact the marketplace. The profound world-wide impact of COVID-19 leads most food and beverage manufacturers to believe that going forward consumers will pay more attention to global health risks, and change their purchase patterns accordingly.
4. Pivot
COVID-19 has totally shaken up consumer trends when it comes to the food and beverage market. The outbreak has made vegan diets more appealing, for example. The market has also experienced an increased demand for ‘immune-boosting’ and ‘healing’ foods. As such, food and beverage manufacturers are advised to invest or pivot towards the manufacturing of plant-based goods and healthy food and drink.
If you want to gain a stronger grip on the demand planning of your enterprise, get in touch with Cashmere today. Our inventory and order management software, purchasing software, demand planning software, and advanced ERP solutions are powered by AI and serve F&B clients around the world.
