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Vision 2025: Defining the new normal in manufacturing

CPGs are focusing on a variety of solutions to operational challenges, chief among them improved relations with OEMs and other suppliers. This is part one of a two-part series.

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Earlier this year at ProFood Tech 2017, PMMI conducted focus groups with food and beverage professionals who have primary responsibilities in processing operations. Part one in this series of articles provides a snapshot of their perspectives in four key areas: consumer demands, internal operational challenges, workforce challenges, and regulatory requirements and their impact on supplier relations.

According to PMMI’s Vision 2025 research project, one way to understand the “new normal” in manufacturing environments is to think about it in aviation terms, complete with headwinds, turbulence and smooth air. The ever-increasing demands made by consumers that reverberate upstream throughout the entire supply chain are the headwinds. As CPGs navigate these headwinds, internal operations face significant pressure, especially regulatory requirements and workforce challenges—this is where turbulence, chaos and disruption live for CPGs. To bring order to the chaos, CPGs are focusing on a variety of solutions to operational challenges, chief among them improved relations with OEMs and other suppliers.

Headwinds and icebergs

Typically, consumers are looking for products that enable their own personal supply chain. They want goods in specific formats where and when they need them and include:

  • Freshness
  • Preservative-free or use of natural preservatives
  • Gluten-free, GMO-free and allergen free
  • Clean labels, sustainable goods with an emphasis on organic, natural ingredients
  • Easy-to-read nutritional information
  • Packaged in a sustainable way that is also easy-to-use
  • Purchased online for convenience sake
  • Formulated to meet their specific tastes

This list represents tip of the iceberg, according to PMMI’s Vision 2025 report. There are considerable variations within them in terms of age and demographics that further challenge a food or beverage company’s response to consumers.

Because of the headwinds listed above, CPGs are dealing with internal operational, workforce and regulatory challenges on a daily basis. Focus group members report suffering from project “scope creep” as a result of poor planning at project onset. In fact, the ever-changing consumer is a double whammy for CPGs – the fickle consumer coupled with poor internal manufacturing processes makes it difficult to meet consumer demands. In addition, CPGs face unrealistic internal expectations as they move faster to meet consumer demands. Sometimes, third-party validations on equipment and processes can slow operations down resulting in a “hurry up and wait” environment. The speed-to-market pressures on CPGs result in expedited turnarounds, not enough planning and beta testing. This quick decision-making can often lead to product launch failures, according to the report. In some cases, CPGs are putting more products into the marketplace earlier and tweaking them along the way.

Assessing the challenges

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