Food & Beverage Industry
The World's Biggest Industry
The food and beverage industry is an essential part of the US economy. Between agriculture, manufacturing, retail, and food service, the sector makes up roughly 5% of the country’s GDP, 10% of employment, and sales exceed $1.4 trillion. According to a report by the US Committee for Economic Development, the food and beverage industry consists of close to 27,000 organizations and employs 1.5 million people. While the market has been more stable than other US manufacturing industries, it is not without challenges.
Consumers are expecting more variety, safety, and social responsibility from food and beverage companies. Known as conscious consumption, it encompasses personal health, sustainability, authenticity, organic production, animal welfare, ethical business practices, and more.
Supply Chain Risk
Economic and political uncertainty are making it harder to do business in more and more nations. Companies are finding themselves with fewer sourcing options. Economic adulteration, fraud, and incidents can occur without warning causing delays, hefty penalties, and permanent brand damage.
Top Line Growth
Food companies are under immense pressure to deliver organic, volume-based top-line growth – not just better bottom lines. This has led to a number of restructuring efforts from acquisitions to mergers. It's also opened the door for disruptive new brands and retail channels to enter the market.
A Networked Approach to Compliance, Quality, and Innovation
Today, food and beverage companies are producing more complex and diverse products, creating longer, more globally dispersed supply chains. Even the most stringent quality control measures may not be enough to protect an organization from supply chain risk. The safety and quality of products produced are mainly dependent on the raw materials, items, and ingredients suppliers provide. The consequences of the wrong item entering a company's supply chain can be severe, leading to wasted resources, increased costs, customer harm, and brand damage.
Tighter restrictions, evolving consumer preferences, and disrupted supply chains have made it harder for companies to innovate. There are now more consumer-driven product criteria and compliance requirements to track globally than ever before. Yet most companies still maintain islands of product information spanning divisions, departments, and various static tools, without a unified view of product formulas, specifications, and other crucial information. A McKinsey study reveals 75% of new CPG products fail within the first four years. While the industry debates product failure rates, everyone agrees it's too high. It’s also too slow. R&D teams report it takes anywhere from six months to a year and, in some cases, longer for new products to reach the market. And this isn't solely a new product development issue, these teams spend half their time reformulating existing products, which also takes too long.
So what's the answer? The answer lies in automating routine, redundant product development, quality, and product development processes, digitizing recipe iteration and supply chain documentation, and connecting teams with suppliers over a networked platform.
How Does TraceGains Change the Game for the Food Industry?
Digitizes documents for data mining and trend analysis to drive continuous process improvement.
Highlight risks by supplier, item, and geography, identifying the most critical threats to the business.
Analyzes quality control and food safety data, for real-time plant floor insight to drive continuous improvement.
Allows users to author, maintain, and publish raw material and finished goods specifications.
Provides 360-degree view of the health of your supply chain with all information centralized on a single platform.
Supplier & ingredient performance monitoring against KPI's, automatic scorecarding, material trends and variation and more.
The Food and Beverage Industry's Collaborative Network
On average, food and beverage companies find 80% of their suppliers already on TraceGains Network, allowing them to instantly connect and collaborate. Thousands of supplier locations are available for manufacturers and brand owners to source and qualify new vendors, procure ingredients, build and reformulate recipes, negotiate ingredient specifications, and automatically collect supporting documentation from a growing library.
Our Network is Always Growing
"Digitizing COAs and making them actionable has resulted in a 75 percent reduction of out-of-specification lots on the receiving dock. Since COAs are often analyzed even before the shipment arrives, Chelsea Milling can now reject shipments even before they’re received, saving the supplier reverse logistics charges and returns processing."
- Jack Kennedy, VP - General Manager