Supply chain assurance gives your food business an additional level of validation and confidence that the engaged supply chain consistently operates at the required standards. It also helps identify and mitigate any potential risks, provides bespoke solutions for sustainability and data security, and specifies areas of improvement within the existing supply chain network.
If you are still skeptical about what merits supply chain assurance can bring to your business, check the points below that demonstrate why you must adopt assurance in your supply chain strategy.
Impact of supply chain assurance on food businesses
Food products have a very short shelf life as opposed to goods from other industries. This calls for improved planning and forecasting that could deal with the challenges in the food industry. Supply chain assurance provides predictive analytics solutions that help identify the future demands of customers that could fluctuate during various seasons, festivals, or based on new food trends.
Assurance in the supply chain prevents the risk of stockouts that could tarnish your brand image and break your customers’ trust in your business. It helps maintain an optimized inventory level that satisfies the market needs while preventing wastage and revenue loss from dead stocks. Supply chain forecasting also helps companies fix the pricing of their products based on the surge and dips in the market demand integrated with the historical data.
Supply chain assurance also ensures on-time performance based on accurate data inputs and proactive measures to optimize the supply chain.
A talent gap in the supply chain without the right skills and leadership qualities could cost the business a lot in the long run. According to a study by Manpower Group, an employment services provider in the US, nearly 52% of employers find it challenging to fill the key management positions in their supply chain. The global supply chain talent shortage has hit an all-time low and is highly prevalent among developing countries like India, China, and African nations.
Talent is a vital differentiator that can give a competitive edge to any business. Enterprises can be assured that they are collaborating with the right set of people in a 3PL who have been extensively trained and equipped to work in the food industry. The supply chain has moved on to be a revenue generator, from simply being a medium that cuts logistics costs.
Food safety is undoubtedly the first and foremost priority for any food business, especially when outsourcing its supply chain processes to a 3PL partner. As food products require more stringent audits and safety procedures than any other commodities, failing to comply with the safety standards can ruin the brand’s reputation. Implementing supply chain assurance in the business strategy of a 3PL partner ensures compliance with food safety regulations like FSMA, FSSI, HACCP, or ISO and builds trust in utilizing its services.
The growth in the food industry has led to a massive rise in carbon emissions and food wastage that cannot be overlooked. Today, customers are looking to connect with sustainable brands, as a result of which many of the top players in the food industry are striving to become carbon neutral, reduce the emission of greenhouse gases, and cut down on food wastage. Supply chain assurance could enable companies to achieve this demanding feat with best practices to reduce the environmental impact of food consumption.
How prepared is your business during times of unanticipated failure or outages? The seamless functioning of a supply chain could be hampered in case of planned and unplanned disruptions like COVID, natural calamities like storms, drought, etc., political instabilities, economic slowdowns, terrorist attacks, and wars. The COVID-19 pandemic disrupted the food industry like never before. Several thousands of companies faced the brunt of lockdown restrictions, safety protocols, and supply chain barriers that directly impacted their revenue. Associating with a 3PL partner with supply chain assurance solutions could guarantee business continuity with backup and recovery measures for inventory, infrastructures, technology, and shipping that might help reduce the socio-economic impact and revenue loss.
Technology assurance and data security
A data breach in your organization could break the trust of your customers when their sensitive information is hacked. It is crucial to associate with a reliable 3PL partner with a trustworthy supply chain assurance to take care of data security. Consolidated and centrally managed supply chain data from various units provides real-time visibility and helps improve existing processes to make better-informed decisions. Supply chain assurance could support understanding the trends, demand spikes, inventory levels, etc., and help reduce risks by leveraging the latest data science technologies and supply chain analytics.
Partnering with a 3PL provider who offers supply chain assurance solutions provides supply chain insights, data transparency, and enough guidance in making timely and informed decisions for your business. It also helps reduce costs, mitigate risks, and facilitates compliance with quality and food safety standards vital to your enterprise’s success.
RK Foodland is a leading supply chain provider with assurance as our specialty. Reach our experts now to know more.