In 2023 the challenges food, beverage and dietary supplement manufacturers dealt with in 2022 won’t magically disappear. For small to mid-size companies with little room for error properly addressing them will be the key to success this year. Here are the top three companies will have to deal with.
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It’s the old good news/bad news story for the industry. The good news is, overall inflation has started to ease. The bad news-it’s still high and prices for key raw ingredients like eggs and flour are soaring.
Meanwhile small and mid-sized companies are feeling downward pressure from customers to hold the line on pricing, squeezing margins and profitability.
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Finding and keeping good employees is an ongoing battle and it’s especially acute at small to mid-size companies that have a hard time matching salary and benefits from larger organizations.
Will layoffs of unskilled labor at companies like Amazon attract more people to the industry? It’s possible but uncertain.
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There has been a lot of concern over a possible recession and those worries are affecting consumer behaviors.
If past behaviors are any indication according to research from Bank of America, you’ll see more people moving away from high-cost food brands to lower cost staples and a drop in dining out at full service restaurants in favor of quick service establishments.
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Small to mid-size food, beverage and dietary supplement manufacturers have no room for error and must address these issues head-on.
Automation and optimizing internal operations are key. New ERP business systems bring functionality and tools like AI, Machine Learning (ML) and advanced analytics to not only run more efficiently but to also better predict future events. If you don’t you face the risk of declining business, eroding margins and customer loss.
What will be the cost of inaction be for your company?
Technologies International has been working with food, beverage and supplement manufacturers for 25-years to help them modernize systems and processes and achieve strategic initiatives that protect margins, lower costs and grow business. Letβs talk about how we can help you do the same.