The food and beverage industry faces an increasingly competitive market with price and margin erosion. Because of increasing market consolidation, customer intimacy and responsiveness to market changes are important to gaining market share. There is increasing product proliferation with the introduction of several differentiated types of beverages and food products. In addition, companies are increasingly global in nature and serve diverse markets. Several companies are also adopting low-cost operating models including outsourced production. The companies are faced with increasing production costs with costs of energy, transportation, and raw materials rising fast. The North American, European, and Australian markets are relatively stable with low growth. The highest growth potential for the industry is in Asia and Eastern Europe.
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Food and Beverage industry challenges
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Strategies to address challenges
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Business issues to address with each strategy choice
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Driving the top line: Improving revenue and market share
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Product innovation
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When should a product launch?
What is the impact of the launch on existing products?
How much can sell? How much to manufacture and distribute?
How to get continuous updates during the initial portion of the launch?
How to course-correct? What are the levers?
How to synchronize data within a company and with retailers?
What price points are most relevant–by customer and location? |
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Growth by mergers and acquisitions
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How to I align two disparate networks to maximize customer service efficiently?
What are the dependencies between my product portfolios?
Is there a single face to the customer?
How to rationalize disparate enterprise data – items, customers, vendors? |
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Enhance customer service
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Is it possible to make reliable customer delivery promises with prioritization for key customers?
What are the dependencies among product portfolios? |
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Improving promotional ROI
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How to leverage the strengths of the brand portfolio?
How to target promotions based upon POS data?
How to get an early read on promotional effectiveness? |
Food and Beverage industry challenges |
Strategies to address challenges |
Business issues to address with each strategy choice |
| Improving the bottom line: Reducing costs and improving asset utilization |
Reducing transportation costs
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How to ensure the lowest possible costs while improving “perfect-order” metrics?
How to manage a mix of private and 3PL fleets?
How to understand the impact of inventory strategy on transportation constraints?
How to model current and future network requirements? |
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Aligning sales and operations
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How to ensure that constraints and targets are understood by the various organizations?
How to align and resolve differences?
How to provide a consensus view on an “enterprise plan”?
How to determine the best product mix to improve market share and profitability? |
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Reducing inventory
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How to align inventory positions to POS?
How to align inventory and thereby production to product and customer specific rates of sale?
How to position inventory to ensure flexibility to react to customer demand?
How to enhance collaboration with my customers and vendors? |
