Data synchronisation pays, say manufacturers

The food industry is increasingly hoping that data synchronisation and other new technologies will help improve its fortunes, even though manufacturers don't expect a return on any investment for some time, according to a new survey of the industry.

For manufacturers, technology and supply chain efficiency has jumped from fifth to fourth place in a ranking of issues of most importance to them in the latest survey from the CIES Food Business Forum, which represents manufacturers and retailers worldwide. At the same time, competition has replaced relationships with retail customers as the top issue facing manufacturers in this year's survey.

The CIES - Food Business Forum: Top of Mind 2006​ surveyed 300 executives in manufacturing and retailing across the globe. The results highlighted the continuing problems of doing business in mature markets, even as cost cutting measures and the adoption new ways of working were being put in place.

The report claimed: ‘2005 was in many ways year of pilots, with various supply-chain partners testing data synchronisation, radio frequency identification (RFID), self-checkout and contactless payment.’ While a fair amount of scepticism, was reported - especially over return on investment for technologies such as RFID - the survey found that relatively rapid returns were possible from activities such as pooling supplier deliveries, where transport costs and complexity could be reduced.

Brands have come under sustained pressure over the year from rising costs, particularly in energy, which has been difficult to pass on, and through the expansion of own-label products. Those in the mid-market sector were said to have suffered badly. Meanwhile, consumer health and nutrition had also become increasingly important, the survey reported.

Food Manufacture​ is organising a conference on Global Data Synchronisation​ on March 31 at the Cavendish Conference Centre in London which will provide delegates from the food and drink sector with a chance to explore the business benefits of Global Data Synchronisation Network services. For more details call +44 (0)1293 867 612 or visit http://www.william-reed.co.uk/view_product.aspx?productID=202&categoryname=Conferences​