Inventory Management Tips in the Food Production Industry

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Inventory Management Tips in the Food Production Industry

Inventory Management Tips in the Food Production Industry 1

Why is inventory management in the food production industry important? Coronavirus affects the supply chain of food and beverage manufacturers throughout the world, with social restrictions around the world which causes customer demand to fluctuate. Consumers create a sudden surge in demand for certain items, forcing food producers to increase supply and modify their inventory.

The food and beverage manufacturing business are unique because the stock is most often damaged, requiring a managed supply chain in such a way that ensuring product delivery while ensuring consumer security.

Understandably, the food and beverage industry is very regulated, meaning food must meet health standards, and certainly need to be sold before expanding so that it does not harm consumers.

The food supply chain and the most effective and efficient drink require excellent management – the process of monitoring the flow of goods from producers to the warehouse – to the place of sale. These include management, warehousing, and processing of finished goods, raw materials, components, and finished products.

This is an important component of supply chain management and is needed for any business involved in purchasing or selling products.

Increasing inventory management requires an increase in command of your warehouse operation and physical stock in it. Here are some areas you can do soon that will improve inventory management in your food production industry:

Current operational practice evaluation

Before you can make improvements, look at your overall business operational practice. Effective inventory management is driven by purpose. Understand what is done at every important point in the chain – this allows you to focus on the specific aspects of your system that need to be improved. Consult with your other team members to identify potential problems areas and start there.

In the food and beverage manufacturing business, there are seven areas to be identified that you can focus on re-working your inventory management process:

  • Minimize excess production by increasing visibility and controls to harmonize production, purchasing, and logistics.
  • Avoid too much storage of inventory with planning and demand modeling tools to support the production of just-in-time.
  • Reduce waiting time by giving them access staff they need to streamline decisions and agreements with automation.
  • Complete the transportation problem by determining production time and logistics, avoiding the transfer of goods from one place to another unnecessary place.
  • Prevent excessive processing and focus on actions that only create value – such as making the bill of material.
  • Stop the unnecessary process by providing data that ensures your machine works the most efficient, productive, and effective way.
  • Place the control in place to remove defects, know where deviations and waste are located, and stop them at the source.

Routinely review stock

The important part of inventory management is just knowing how many of each item you have in stock. Track what you buy against what you sell won’t give you a complete picture.

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Food items and drinks can be lost, stolen, or damaged after entering the warehouse – they cannot be avoided. Often, missing items are not reported until they realize it. Overcome this problem by routinely review your physical inventory for accuracy with your notes.

Learn customer behavior and take advantage of BIG Data

One significant benefit of using Big Data is its ability to make accurate predictions, which can greatly improve inventory management in the food production industry. Throughout the year, customers often show the habit of buying different food and beverage products.

Some of them may be clearer, related to seasonal holidays such as Christmas and Eid al-Fitr, but sometimes some changes cannot be captured by the business without data analysis. To avoid having too much or not enough inventory, businesses can rely on data technology to store goods at the right time.

Monitor how often you refill certain items and try identifying any trends or patterns – there may be seasonal factors or other external factors that affect the flow of your product.

Pay attention to the period when customers order more, and when they order less. Having a strong handle on how your customers behave allows you to stay in front of dry and busy times, so you maintain the right inventory balance.

If you are involved in manufacturing food and drinks and have been looking for ways to win a competitive advantage in competition, you may have seen inventory management software that can automate the main business processes and powerful insights, helping you make better decisions based on data.

Big data can increase efficiency in inventory management by marking problems that you might not know about before. By collecting information from the Internet of Things tools and sensors, you can quickly draw information that details any process or machine that does not work on maximum performance, or provide guidance when something will be repaired.

Optimizing Stock Management Flow

Having a system to refill good inventory can make sure you will never run out of stock. It is very important for the smooth flow of products during the busy period. Food retailers have been known for using a timely production strategy, where supplies are refilled every day based on sales and demand estimates, which means supermarkets can maximize the life of food.

If you do not use the Just-in-Time strategy, you must have the policy to refill inventory at the specified level. Every time the item stocks drop below a certain amount, you must order in. Systematization The charging process can avoid pauses in the availability of products between the time you ordered and received the shipment.

In the past, you might have to check inventory manually, making a decision to reorder based on suspicion. Now, technology is available to allow you to analyze trends that can reveal which products do not sell and remind staff when they need to start re-ordering more certain products, one of which is to use online accounting software that has the most complete inventory features such as Accurate Online.

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Ensure product withdrawals from circular faster

Sometimes the worst thing happens, and you may have to remember food and drink items that have problems. If handled badly, this will potentially cause permanent damage to your brand, so you need to act quickly and minimize damage.

Have the latest data to answer these questions, you can quickly identify where the problem is, and overcome the problem with confidence, providing market guarantees, and reducing recall costs.

To get data access in real-time, you must save data centrally, allowing you to track data from the farthest range of supply chains, through the production process, and from customers.

Information spreads quickly. Consumers can access the potential problem of food and drink products as soon as anyone publishes them. Withdrawal of products handled badly can damage your business reputation – sometimes cannot be repaired, so you need to control the narrative.

The safest and the best strategy is that your food and beverage business communicates with the authenticity that you control the situation and that you have the right solution.

Reduce food waste

Your customers are more environmentally conscious about problems created by food waste. This will make you pay to invest in inventory management technology that can reduce excess inventory and handling, ultimately reducing the easily damaged items that are wasted.

The first goal is to request a retailer to share data that can not only help you with production plans, improve efficiency, and improve quality – but also promote an environmentally friendly agenda.

Also note, how surplus products can be reused in a certain way – for example, through charitable organizations. Defective or imperfect food for example, which is usually rejected by supermarkets, can be sold at a discount price.


Those are inventory management tips in the food production industry that might be useful for you as food products owners. For your convenience in the management of inventory in your business, use an integrated system with all your operational activities such as bookkeeping, taxation, and the like.

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