Digitalisation: the key to unlocking growth potential in outsourced food production

By Josephine Coombe

- Last updated on GMT

Coombe: 'Digitalisation provides a clear path to greater collaboration for the food supply chain'
Coombe: 'Digitalisation provides a clear path to greater collaboration for the food supply chain'

Related tags digitalisation

Josephine Coombe, chief commercial officer at Nulogy, Europe, discusses the potential of digitalisation in outsourced food production and how it can improve all the key functions in a day-to-day co-packing environment.

For contract packers and manufacturers, embracing digital transformation is key to keeping up with the demands of today’s food and drink sector. The days of predictable consumer demand and stable retail channels are long gone, and manufacturing supply chains need agility and resilience to keep up with changing demand and frequently volatile market conditions.

Fast-moving consumer goods (FMCGs) brands are therefore increasingly relying on their external manufacturing and co-packing partners to help bring products to market quickly and cost-effectively. However, sometimes suppliers may lack the ability to collaborate effectively across the supply chain, limited by non-standardised modes of communication.

Greater collaboration

Digitalisation provides a clear path to greater collaboration for the food supply chain. Cloud based platforms, such as Nulogy, are key enablers that are tailored specifically to enhance all the key functions in a day-to-day co-packing environment, from estimating and planning jobs, to managing labour and materials on the production floor, and ensuring quality control, recall readiness and traceability.

The availability of real-time data on performance and order status means contract packers and manufacturers can together gain better visibility of their operations, ensuring lines are hitting targets and stock count is accurate. With precise information at their fingertips, suppliers can also improve labour efficiency and reduce inventory write-offs from lower material obsolescence.

Leading UK based food packer, Marsden Packaging, has seen Nulogy’s co-packing software deliver value on the shop floor as well as at the strategic business level, illustrating how digitalisation is a hidden gem of opportunity for those looking to stand out from the competition and unlock growth.

Improved communication

Specialising in primary and secondary packaging services for the food and pharmaceutical sectors, Marsden has witnessed effective collaboration and improved communication with its customers from use of Nulogy.

Embracing digital transformation has undoubtedly delivered both a raft of operational and financial benefits for the business. Integrating technology into its operations has enabled dynamic scheduling and materials planning functionality, meaning quick adjustments can be made to deal with changes in demand, bills of material versions or product substitutes. And, just as importantly, embracing digital transformation has strengthened Marsden’s relations with its brand customers.

By sharing data and working together to fulfil orders, digitalisation enables mutual trust to be built, with all parties achieving their objectives. Ultimately this generates a ‘win-win’ situation with the enhanced visibility, agility and flexibility delivering for this critical part of the food supply chain.

Related topics Industry 4.0 Technical

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