In terms of overall goals, food manufacturing companies continue to be focused on higher sales and profitability. Of course, they must achieve these goals while driving innovation and ensuring food safety and product quality. Today’s food companies are challenged by increased commodity and market volatility and tighter margins. The combination of more new products, more promotions and the changing supply landscape, makes it increasingly difficult to meet these goals.
Traditional Sales and Operations Planning (S&OP) practices, which attempt to address these issues using cross-functional teams, spreadsheets and limited analysis, have found limited success in the food industry. The complexity of the food supply chain and the industry’s paper-thin margins require a holistic framework that allows companies to greatly enhance the accuracy, speed and robustness of their supply chain decision-making. This white paper outlines how food manufacturers can leverage margin-driven S&OP to overcome volatility in their supply chain.