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.
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.
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.
How Does TraceGains Change the Game for the Food Industry?
On average, the food and beverage companies find that 70 percent of their suppliers are already in TraceGains Network, allowing them to immediately 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.
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, Chelsea Milling Company (Jiffy mixes)