Solutions for FMCG

Risks and challenges

Producers of consumer packaged goods, food and beverages are under a huge price and business pressure from large business chains that press their suppliers to keep reacting more quickly, to provide error-free service, high quality and to reduce prices. Beside that, food-processing and beverage companies are obliged to fulfil a number of market directions and regulations, the primary aim of which is to eliminate health and hygienic risks and to protect customers.

Branch specific initiatives

A prerequisite for cooperation between FMCG producers and retail chains is communication via EDI supported by UN/EDIFACT and SEDAS branch-specific standards. Flexible and fast communication is necessary for an effective link between producers and their customers. It is a basis for the fulfilment of a number of specific requirements including, for example, identification of commodities, use of bar codes (EAN) or various distribution and logistics methods. Fast response to changes in customers´ behaviour (Efficient Consumer Response - ECR), Continuous Replenishment system - CRP and related Vendor Managed Inventory - VMI, or CCG standards support - these are only some of the branch-specific initiatives that shape the modern supplier-customer chains in the food industry. Food processing companies increasingly cooperate with logistics services providers who ensure for them complete distribution from the manufacturing warehouse.

Logistics

Strong competitive environment in this segment makes individual manufacturers focus on increasing efficiency inside their businesses, in addition to optimising external logistics processes. To a certain degree, efficiency has impact on the overall perception of manufacturer quality and his ability to satisfy tough requirements of its customers. Among the often accentuated priorities are: control of distribution centre network linked with own production, ability to manage stock movements and effective warehouse management. High-quality warehouse management system (WMS) nowadays belongs to essential tools both for adherence to FIFO, FEFO rules, the optimisation of warehouse utilisation and picking processes. Due to high stock movement rates, businesses require that their logistics and warehouse management systems are able to support also their requirements for on-line management of store workers, including the use of such technologies as voice picking or RFID.

A separate topic as for the requirements for food producers is proving and keeping data on history and tracking of products, raw materials and batches. Since the accession to the EU, producers have been obliged to adhere to the EC regulation no. 178/2002 that binds them to implement measures to ensure production traceability. Fulfilling this regulation requires, in addition to a number of process modification also specific requirements for the logistics system.

Our solution

For many years, the Aimtec Company has been consulting and implementation partner to a number of FMCG customers. We cooperate on a row of projects in the area of EDI and logistics systems implementation. We are members of the GS1 Czech Republic organisation (former EAN), which is responsible for implementing and supporting the use of the GS1/EAN UCC system in line with GS1 standards. Our added value in these projects is also the fact that we share with our customers many inspiring ideas and experience from other industrial segments, where competition is intensive, too. Such view from a different perspective often is a source of innovations that can increase the competitiveness of our customers significantly.