Determining appropriate inventory levels is one of the most important and most challenging tasks faced by supply chain managers. If you carry too much inventory, you tie up money in working capital and risk writing off perishable goods; if you don’t carry enough inventory, you face stockouts.
Over the last 20 years, manufacturers have been using automation to streamline their operations, responding to changes in the market and evolving factory floors.
Most people picture AI and machine learning when they think of ‘digital transformation’. While these initiatives do have exceptional promise for many companies, the pathway to gaining benefits from them can be costly and uncertain. In reality, AI and machine learning are tools to enable businesses to achieve the final 10% of maturity in their operations.
While food recalls are a relatively rare occurrence – according to Food Standards Australia New Zealand (FSANZ), there are on average 67 food recalls per year – they can pose a significant danger to public health and safety if not done correctly or in a timely manner. That is why the FSANZ requires that manufacturers, wholesalers and importers of food have a detailed system in place to ensure the recall of unsafe food.
There is always a lot of talk about the manufacturing industry and what’s going on out there in the market, but as a digital operations consultancy that helps customer organisations to improve business agility, we rarely share our own insights and observations.