How Food Companies With Over $5M in Revenue Can Double Their Growth by EOY 2020

The retail landscape is shifting. For a food company to be successful in an increasingly competitive marketplace, it must drive revenue. This all starts with a clear, powerful sales strategy. Without sales, there is no long-run growth for any business. But, increased growth also can be the result of changes a company makes to its software systems – which can provide insight into the supply and traceability of products, as well as orders, sales and demand planning. In 2020 these applications can carry a food company to the elusive next stage of success and growth.

SALES CHANNELS AND SELLING DIRECT

A solid way to boost your growth is by investing in marketing. Tactics such as social media outreach and SEO-optimized content often find success. A food company can experiment with their Instagram strategy for example; testing what frequency of posts is the most effective, and which content gets the most engagement and drives the most traffic to their website. But once the consumer has landed on your website, what is the best sales strategy to adopt? The term “multichannel sales strategy” is defined as selling products in other places besides a physical store or an e-commerce website. By diversifying your sales channels, namely selling your food product in several different online and offline locations, you’re increasing the likelihood that a customer will interact with your product, and in the process, you positively service your brand. Having said this, not every channel is a good fit for every food product. Many marketplaces or stores, both online and offline, can prioritize their branding over yours, or give a boost to other products, which are similar to yours. In addition, most online sales channels charge fees and commissions, so selling direct to consumers may be a preferable option for your company. By selling direct, no middleman is involved and you get to keep all of your profits.

DEMAND PLANNING AND SALES FORECASTING

The food industry is characterized by complex supply chain networks, fierce competitiveness, and small profit margins. But those manufacturers who can plan and predict demand for their products are much more likely to gain a competitive advantage and thereby increase their growth. And this is what demand planning is all about. If a company can produce the exact right amount of their food product, which perfectly meets demand, they will reap rewards. This is certainly the case when it comes to the production of fresh food, which is perishable since reductions in demand will result in waste and loss. In fact, retailers lose more than $1 trillion globally as a result of overstock and out-of-stock situations. Fortunately today software systems can utilize the power of predictive analytics, AI and machine learning to provide a highly accurate forecast of future demand and sales for any food product. This software works to minimize waste, and its users experience maximized profits. Accurate demand planning and sales forecasting are the key to achieving increased efficiency and revenue.

TRACEABILITY – WHY IT’S NEEDED MORE THAN EVER

Another critical method by which to double a food company’s growth relates to the concept of traceability. More than ever we are seeing many prominent food recalls in the media. In fact, food recalls cost American companies an average of $10 million per year. And a recent survey by Harris Interactive found that 16% of consumers would never buy a recalled food product again. These scares highlight the need for better traceability – which is defined as the tracking of any food product through all stages of its production, processing, and distribution. Traceability has three key benefits; it increases supply chain visibility and management, improves quality control systems, and reduces a food company’s risk. These have a direct impact on growth and revenue. A food product’s multitude of ingredients may originate from all around the world. By using software to keep a clear and accurate record of the entire history of the products and its ingredients, food companies are empowered to react swiftly to any potential issues, as well as meeting their varied and stringent compliance demands from the worldwide marketplace.

INVENTORY MANAGEMENT

Solid inventory management can also have a great impact on a food company’s growth. Inventory management software enables users to have a transparent and up to date knowledge of their stock – tracking warehouse items through acquisition, sales, and production processes. Effective inventory management leads to increased efficiency and productivity in operations. And as inventory costs are minimized, sales and profits are maximized. Advanced ERP (Enterprise Resource Planning) suites can integrate inventory capabilities with a food company’s financial systems, supply chain systems, reporting, and manufacturing processes into one unified, all-encompassing operating system.

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