The Top 5 Biggest Challenges in Food and Beverage Distribution

Want to learn more about the biggest challenges facing food and beverage distributors today? Keep reading. 

1. Demand Forecasting Challenges

It’s not a challenge to make demand forecasting predictions in food and beverage operations, but without strong demand forecasting software it’s challenging to make these predictions accurate. Accurate demand forecasting results in improved production efficiencies, reduced inventory costs and streamlined purchasing processes. The most accurate supply chain demand forecasting software is powered by AI, and it serves to make accurate demand predictions via analysis. A machine learning algorithm can use historical data, trends, seasonality and cyclical fluctuations to forecast demand with great accuracy.

2. Regulatory Challenges

The increasingly dogmatic regulatory landscape of food and beverage distribution cannot be ignored. In response to the U.S. Food Safety and Modernization Act and Safe Food for Canadians regulations, manufacturers face renewed, stringent safety demands in all markets. There are different global regulations to follow in terms of trace elements, allergens and pesticides. And traceability demands also vary by industry and product, which can be a logistical challenge. There are also new reporting and documentation rules for food production, waste disposal and food quality requirements. Fear not: Lateral Technology’s food and beverage distribution software provides bona fide end-to-end traceability solutions from ‘farm to fork’ (namely from raw materials all the way to the consumer).

3. Sustainability Challenges 

The challenges of protecting the environment are at the top of the priority list of most food and beverage companies, and it’s easy to understand why. According to WWF, every $1 million spent on food by consumers has a corresponding ecological footprint of around 1,500 hectares. This is the highest ecological impact of any industry in the world. Fortunately companies like McCain, Cadbury and McVitie's have all set ambitious sustainability goals, which has raised the bar for all manufacturers in turn. Food waste, water consumption and transport emissions are just some of the myriad of environmental challenges that food and beverage manufacturers need to face.

4. Inventory Management Challenges 

Keeping track of what’s in stock is a constant challenge for food and beverage manufacturers and distributors. The waste that results in overproduction can have a huge impact on your profits, and it is challenging to manage and control. Fortunately cloud ERP software can manage your inventory systems for you. Lateral’s ERP provides its users with a clear dashboard of information — from where they can make changes to space management, assembly, scheduling, and traceability, all in one location. Efficient inventory management will boost your whole business. 

5. The Challenge of Shifting from In-store to Online

The rise of e-commerce in recent years cannot be ignored. Particularly in the wake of the COVID-19 pandemic, food and beverage distributors must respond to changing consumer behaviour patterns. In fact, Statista has predicted that e-commerce revenue will surpass $638 billion in the U.S. by 2022. And food and beverage distributors must innovate as they work out the best way to service their consumers online. 

If your food and beverage company is looking to scale and grow via ERP solutions, traceability and demand planing software, get in touch with the team at Cashmere today!