Demand Forecasting for a Food Manufacturing Industry
Companies in the food manufacturing industry are facing several challenges such as volatile market demand, quality issues, supply-demand mismatch, and complex manufacturing constraints. In this context, companies in the food manufacturing industry are realizing the importance of leveraging demand forecasting solution to efficiently forecast demand and anticipate sales.
The client is a food manufacturing company based out of the United States. The client was facing challenges in efficiently planning inventory operations and anticipating product demand. This resulted in huge loses for the company in terms of sales rate and profit margins. The client, therefore, wanted to leverage Infiniti’s expertise in offering demand forecasting solution. With Infiniti’s demand forecasting solution, the food manufacturing company was looking to manage inventory, maximize sales, and tackle production challenges.
Other challenges faced by the food manufacturing industry client were:
Food manufacturing industry challenge 1: Out-of-stock issues
When faced with out-of-stock issues, the food manufacturing industry client had to deal with unplanned production changeovers to keep up the business. This affected their profit margins.
Food manufacturing industry challenge 2: Overstock issues
On the other side, when the company produced extra products, it resulted in overstock and impacted warehouse operations.
Food manufacturing industry challenge 3: Production speed
By leveraging Infiniti’s expertise in offering demand forecasting solution, the client wanted to set up processes according to the estimated demand to speed up the production cycle.
Food manufacturing industry challenge 4: Labor management
With Infiniti’s demand management process, the client wanted to optimize labor management. They also wanted to predict the peak periods and plan their staffing needs more accurately during periods of high product demands.
Solutions Offered and Value Delivered
The initial phase of the demand forecasting process involved gathering all the available qualitative and quantitative data from market research, market testing, and buyer surveys. The experts developed a robust demand forecasting framework to help the client better plan their production, warehousing, and shipping schedules. With Infiniti’s solution, the client was able to understand the supply-demand requirements and the peak periods for their business. This further helped them in better labor management.
With Infiniti’s demand forecasting solution, the food manufacturing industry client was able to make accurate sales predictions and reduce stockouts of products. This even helped them to efficiently manage their resources during peak periods. The food manufacturing industry client was also able to manage supply and demand. The company achieved a 22% reduction in unfulfilled orders. Also, the solution helped the company to meet their customers’ demands and enhance customer experience.
Challenges in the Food Manufacturing Industry
The rapid transformations in the food manufacturing industry have brought about a host of opportunities for food companies. The rapid transformations have also increased challenges for companies operating in the food industry. Let’s have a look at some of the challenges in the food manufacturing industry.
- Creating automated processes to adapt with the ever-changing consumer trends
- Closely monitoring and complying with state and federal regulations on proper food safety and waste disposal
- Finding skilled labor