TECH TODAY SUPPLY CHAIN INTELLIGENCE
by that product. Armed with this knowledge, companies can look at the sourcing of those inputs and determine which inputs look to be in good shape and which seem shaky, in this way assessing the health of the supply chain. Such an analysis could completely change how a company goes about reducing risk, Surenian says, because it could show that what seems like an unimportant and inexpensive component might actually be critical.
Collaboration is essential Technologies can also help supply chains become resilient by combining a variety of functions to improve data visibility. DelmiaWorks’ software, for example, integrates ERP with manufacturing execution system (MES) functionality, providing end-to-end visibility across the supply chain, says Louis Columbus, senior industry marketing manager for DelmiaWorks. But technology alone isn’t enough. “Food and beverage companies also need to create stronger collaborative partnerships with suppliers and be transparent with them to create more trust,” he says. “The goal needs to be sharing ownership of the current challenges with their suppliers so they can act as a team, reducing risk in the process.”
Achieving that kind of close cooperation can be challenging. Build-to-stock manufacturing could involve inventory intended for many parties, with processing taking place at many different sites, Infor’s Tardif notes. This co-mingling of different supply chains means that some of that inventory could be going to food processors that are competitors. Naturally, then, the intermediate processors might be reluctant—or even contractually forbidden—to reveal much detail. But even if the available information is just shipment numbers along with general production figures and raw materials purchased, sharing could be beneficial, according to Tardif. “It helps,” she says, adding that information exchange related to supply chains works best when it’s a two-way transaction. “It’s a quid pro quo.” Limited supply chain visibility leads to such problems as seemingly separate sources actually depending on only one supplier, with this single point of failure perhaps several steps removed from the food brand owner. An example is what’s happened recently to cooking oil, with the price of olive, sunflower, and other oils doubling or tripling—if they’re available at all. This happens across all cooking oils as manufacturers begin substituting other oils in their prod-
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