Food and beverage manufacturers need more advanced planning and scheduling

The survey, conducted by Enterprise Economics among 200 leading food and beverage suppliers around the world, found companies routinely coping with excess inventory in their supply chains yet empty store shelves. It attributes the problems largely to the continued use of spreadsheets and paper-based methods for sales, production and purchasing planning – with the inevitable result of lower sales and bottom-line performance for retailer and manufacturer alike. According to the study, one in every four companies in Asia still uses paper for sales forecasting and planning, compared to one in 100 in Europe. European companies take the lead in using planning software for sales forecasting and planning, at 58%, compared to just 36% in Australia and New Zealand and 13% in Asia. However, while the study suggests that Europe is leading the way in the use of advanced planning tools, 21% of those surveyed in Europe are still using spreadsheets for production planning, and 30% use them for sales forecasting. “The food and beverage industry has very small margins and is very dynamic,” comments Alun Baker, vice president for North West Europe for Lawson Software. “As such, accurate supply chain information is absolutely key, not just for planning, but for operational efficiency… It’s still a vastly untapped area of supply chain management.”