Supply Chain Issues in Food Manufacturing and Distribution

About the Episode

The complex and underappreciated topic of production planning and supply chain optimization is the focus of this episode of F&B Talk. Lisa Anderson takes a look at the different components of production management and how they fit into the supply chain world. She discusses the steps of the production planning process, the importance of the sales forecast, common issues in the supply chain on the manufacturing and distribution sides of operations, and keeping all the elements and players on the same page.

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In this Episode

1:55 What is involved in production planning?
3:18 How does production planning fit into an operational structure? What is the most challenging part of production planning?
6:05 How does inventory management go hand-in-hand with labor management?
7:11 What does level loading a schedule mean?
10:54 What’s the typical cushion of inventory, or safety stock, in the food and beverage industry?
12:33 What is promotional inventory, and what challenges does this sort of inventory present?
13:09 How many SKUs does Coca-Cola have? Does the complexity increase exponentially with every additional SKU?
16:16 How accurate are sales forecasts?
17:45 If the sales forecast is the first step in the production planning chain, what is the next step in the chain?
20:20 In addition to inventory and labor, what other variables are impacted by sales forecasts?
24:23 What’s the next step in after-sales forecasting?
27:57 Where does production planning fit into the corporate structure of a company?
29:25 What are the elements of production planning in supply chain management in the food and beverage industry?
34:07 How long is the extended supply chain process, and what lead times are involved?
40:51 What are the most common issues in the food and beverage supply chain?
46:23 How much opportunity is there for improvement, typically, with production planning?
48:56 How do people in different roles with different titles and responsibilities impact production planning, and how does it all get tied together across departments?
53:32 What’s the most popular software for managing production planning?
55:41 How did companies respond to the impact of COVID, and how did this situation test the agility of companies?

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Resources Mentioned

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Acronyms or Terms Used in This Episode

  • TQM – total quality management
  • Lean Management – a business methodology that looks at ways to increase efficiency and quality in business operations
  • Safety Stock – an extra quantity of inventory that is used as a cushion to keep from running out
  • SKU (Stock Keeping Unit) – a number assigned to each type of inventory to allow inventory tracking
  • Capacity Planning – a process used to determine the level of production needed to meet changing demands for products
  • ERP – enterprise resource planning

Meet Our Guest

Lisa Anderson

Lisa Anderson

Founder and President of LMA Consulting Group Inc.

Lisa Anderson is the founder and president of LMA Consulting Group Inc., a consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth. She has been named one of the Top 46 Supply Chain Influencers by SAP, a Top 40 B2B Tech Influencer by Arketi Group, and a Top 50 ERP Influencer by Washington-Frank.

She recently published SIOP (Sales Inventory Operations Planning): Creating Predictable Revenue and EBITDA Growth on how to successfully navigate the supply chain chaos with superior customer service and profitable growth. She is a regular content contributor and speaker on topics including scaling profitably with Sales, Inventory & Operations Planning (SIOP), digitizing the supply chain, and reconfiguring supply chain strategy post-COVID and is regularly interviewed and quoted by publications such as Industry Week, Bloomberg, and the Wall Street Journal.

Prior to founding LMA Consulting Group Inc., Lisa was the Vice President of Product Supply of PaperPak, a private equity-backed global healthcare products manufacturer. She holds a BA from the University of North Carolina at Chapel Hill and an MBA from Cal State Fullerton and holds supply chain certifications from the Association of Supply Chain Management.

Location Location: Claremont, California

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