Almost a decade of disruption due to major political, health, and geopolitical events means there is no choice: food and beverage businesses need to modernise supply chain operations with digital transformation to stabilise themselves ahead of the next inevitable interruption.
Frequently, many have been focusing their efforts on refining the last mile, with retailers like Tesco evolving their delivery services to offer quick commerce through Tesco Whoosh, for example. However, in focusing so intently on the last mile, some F&B organisations may have neglected the first. This is something businesses do at their peril.
As discussed in the latest InterSystems-sponsored Retail Gazette whitepaper, “Forget last-mile for a minute, it's the first mile that needs transforming”, the first mile is just as crucial to supply chain operations and customer satisfaction. After all, the first mile includes everything from procurement to inventory management. So, without a smoothly operating first mile, the right products in the right quantities might not be available, which can create major issues for F&B organisations – impacting customer satisfaction, overall operations, and the bottom-line.
Fortunately, it seems there is a growing realisation that money spent on optimising and transforming first-mile logistics and operations will pay off in the long run – yielding long-term cost savings and efficiency improvements.
Barriers to first mile optimisation
To date, a significant barrier to first mile optimisation has been the lack of real-time data integration and visibility. Our research has found that no real-time visibility of data (41%) and manual processes (39%) are among the leading challenges in making progress in demand sensing and forecasting, for example.
The ability to quickly ingest, analyse, and subsequently make strong business decisions is crucial to first mile processes like demand sensing and forecasting but outdated data management processes and – inaccurate data (37%) – are real drags on progress. Nearly a third (30%) of supply chain leaders said processes built on outdated algorithms without agility to adapt was a key challenge in this space.
Modern analytics and data intelligence platforms, like the InterSystems Supply Chain Orchestrator, can address these challenges by providing robust data management, integration, and analytics capabilities. These capabilities allow businesses to see, understand, optimise, and act to positively impact the entire end-to-end supply chain, from first to last mile.
The transformative power of data and AI
By integrating disparate data sources and providing a unified view of the supply chain, these platforms help F&B organisations make informed, timely decisions. This integration supports proactive management of supply chain disruptions and enhances overall operational efficiency.
Meanwhile, AI and machine learning capabilities within intelligence platforms enable accurate demand forecasting and inventory optimisation. Predictive analytics can identify potential supply chain disruptions before they occur, while prescriptive analytics suggest optimal actions to mitigate these issues.
Effective use of data can also enhance collaboration between suppliers, manufacturers, and retailers. This collaboration is crucial for aligning forecasts, optimising inventory levels, and ensuring smooth operations across the entire supply chain.
Stand still and fall behind
While F&B businesses continue to face cost pressures from all angles, investment in optimising supply chain operations from the first to the last mile using a decision intelligence platform enhances efficiency in the long run, thereby resulting in sizeable savings.
Standing still in F&B means falling behind. Technological change and the opportunities emerging as a result is happening at rapid speed, and it is incumbent upon today’s industry leaders to acknowledge that and embrace the evolution. This will empower F&B organisations to ensure they have a supply chain that is fit not just for today, but also to withstand and mitigate future disruptions and capitalise on new opportunities.
Learn more about transforming the first mile – download the whitepaper now.
