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Lean Technologies Help Food Industries Compete   Date: Friday 14 May, 2010
By Thomas R. Cutler  

Article Content:

Jeff Pyden, Managing Director for Atlanta, GA-based, OmniVue, looked closely at food manufacturers, food distributors, and food service enterprises and concluded, “No other industry requires the same level of lean expertise to deliver powerful manufacturing, supply chain, and accounting solutions to drive down operational costs while improving customer satisfaction.”

Food and Lean Processes are linked to…

• Boost operational efficiency and reduce costs most important in food where margins are very thin
• Enable informed decisions using data from suppliers and customers in real-time
• Integrate powerful project management tools into ERP applications to accurately track all types of projects—including new food product development. Integrate multiple facilities and departments by delivering a single, real-time view into all manufacturing, supply chain, sales, procurement, and financial activity
• Improve business performance from the plant floor to the bottom line
• Streamline food production operations by automating manufacturing processes and gain greater visibility into all aspects of the operation from order entry to production, warehouse management, and delivery.
• Respond quickly to changing customer demands with agile manufacturing…plan rush orders, make exceptions, and handle last-minute changes to the food manufacturing processes with multiple planning options, tracking, and interactive action messages.
• Build deeper relationships with suppliers and vendors
• Shorten development cycles by integrating food product development to manufacturing, accounting, purchasing, and suppliers

Pyden insists that, “Food-related companies must streamline manufacturing processes and adapt quickly to changing demands. Customer-focused solutions that help businesses grow and stand apart from their competition are essential in all phases of food production and hospitality.”

Hotels/Motels, Food Service, Restaurant Operating Companies

Real-time access to critical data can help hospitality food businesses better manage products and control inventory levels, make better-informed decisions, and spot evolving customer trends quickly. Lean expertise for this slice of the food industry must include:

• Managing inventory, orders, and logistics more efficiently
• Maximizing the relationship between POS systems and back office systems
• Eliminating redundant entry and reporting through fully integrated systems

Pyden noted that, “The ability to aggregate and analyze critical information from across a retail operation helps manage processes and transactions better, increase service levels, make better-informed decisions, and spot evolving customer trends faster.”

Power and Extensibility of an Enterprise-Level Application Affordably

Software-as-a-Service (SaaS) or On-Demand

Too many technology solutions providers are interested in selling their solution rather than providing food industry executives with choices and flexibility to craft the best possible and affordable solution. These lean applications can often be delivered on-demand, hosted, or on-premise to support the food organization's goals and long-term strategy.

An on-demand solution provides the functionality of a robust business management system, at an affordable price, and without the IT hassles.

Pyden identified when food manufacturers, distributors, or food service organizations should consider an On-Demand solution for the following reasons:

• Cash Flow - Interested in a robust solution, but prefer an off balance sheet cost over an up front fee
• Forecasting - Predictability of a monthly subscription based fee, coupled with reliable results and a comprehensive set of services from a trusted and effective solution provider
• Affordability - Cannot invest in the resources and infrastructure to support an on-premise solution
• Flexibility - Prefer to subscribe the use of the software over purchasing the license and equipment
• Options - Want to focus technology investment on increasing the competitive advantage, not on purchasing equipment
• Rapid Implementation - Need to be up and running on a new application in weeks versus months, while retaining the ability to tailor the solution to the existing processes
• Accessibility - Want the ability to access you data anytime, from anywhere, via a secure internet connection

No where are lean manufacturing principles more unique than in the food sector.  The needs of our clients in the sector require that we provide them with choices for their business management solutions.  The food industry needs the best lean technology choices.

• Choice of software to align technology with business strategy
• Choice of ownership to buy, subscribe or finance a solution
• Choice of deployment to host the application or implement on-site
• Choice of support from as-needed application support to managed services



Author Biography:
Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc, www.trcutlerinc.com). Cutler is the founder of the Manufacturing Media Consortium of three thousand five hundred journalists and editors writing about trends in manufacturing. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, Committee of Concerned Journalists, as well as author of more than 400 feature articles annually regarding the manufacturing sector. Cutler is also the developer of lean technology C.E.O (Continuous Experiential Optimization). Cutler can be contacted at: trcutler@trcutlerinc.com


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