Expert Advice: A Roadmap for Food Companies Embracing Supply Chain Planning Technology

In the first part of our interview with Henry Canitz, Founder and Principal at NITZ Supply Chain Consulting, we explored the obstacles that food supply chains face and the opportunities with innovations in supply chain planning. Henry provided valuable insights into how companies can navigate challenges like fluctuating demand, supply chain uncertainty, and sustainability concerns – highlighting the critical need for agility and resilience in the food industry’s ever-changing landscape.

In this second part, we turn to Henry’s advice for food producers looking to invest in supply chain planning technology. As companies strive to optimize their supply chains and stay competitive, technology plays an increasingly vital role. Henry draws from his extensive experience to offer practical guidance on how to choose the right solutions, what factors to consider, and how to ensure long-term success.

From understanding the unique needs of your business to considering the long-term scalability, these recommendations provide a roadmap for embarking on this crucial journey. Whether you are in the early stages of technology selection or seeking to optimize your current systems, Henry’s insights can help you navigate this complex landscape.

What Advice Would You Give to Food Producers/Manufacturers Looking to Invest in Supply Chain Planning Technology?

H. Canitz: Investing in supply chain planning technology is a significant decision for any food company, and it’s essential to approach it with careful consideration. The right technology can drastically improve efficiency, streamline operations, and provide better visibility across the end-to-end supply chain. However, selecting the right solution is no small feat, and overlooking critical factors can lead to costly setbacks. Based on my experience, there are several key steps companies should take to ensure they make the best possible choice.

1. Understand Your Specific Needs

Before selecting a solution, assess your company’s unique challenges and requirements. A good way to accomplish this is by conducting an externally led supply chain planning assessment and enhancement engagement. This expert led engagement will help to identify the largest categories of opportunity by planning process area as well as appropriate people, process, system and data improvements to make based on the company’s current process maturity stage. This type of engagement will provide a roadmap to close the gap between your As-Is Planning capabilities and your desired To-Be Planning capabilities.  The financial opportunity is quantified, and business impacts clarified which will help remove barriers to implementing the To-Be Planning capabilities.

2. Engage a Supply Chain Planning Expert

The supply chain planning solution market is complex, and running a successful supply chain planning selection is time consuming. Working with an external supply chain planning expert that has successfully run multiple supply chain planning selection projects can help to ensure the right solution from the right partner is selected for your company. Don't go it alone!

3. Assess the Total Cost of Ownership (TCO)

Evaluate the total cost of ownership, not just the initial software purchase. Consider:

• Implementation costs: Including software setup, configuration/customization, and integration with current systems.
• Training costs: For onboarding staff.
• Maintenance fees: Including updates and ongoing vendor support.
• Scalability costs: Whether expanding the system will incur additional fees. Balance these factors with the expected ROI in terms of cost savings, efficiency improvements, and reduced risks.
• Hidden Fees: Be aware some solution providers don’t provide many of the more advanced capabilities such as AI and machine learning with their base offering. These advanced capabilities can be must-haves for you that come at an extra price.

4. Involve Key Stakeholders Early

Engage key stakeholders from procurement, production, planning, sales, marketing, and IT early in the decision-making process. Their input ensures that the chosen solution aligns with business goals, operational realities, and technical infrastructure. Cross-functional collaboration also helps drive adoption and ensures a smoother implementation process.

5. Prioritize User-Friendly Interfaces

The success of any technology implementation depends on user adoption. Choose platforms with intuitive, user-friendly interfaces that require minimal training for your team. This helps ensure the technology is widely used and understood, reducing resistance and improving overall efficiency.

6. Prioritize Scalability

Choose technology that can grow with your business. As your operations expand, you’ll need solutions that can handle larger volumes of data, additional suppliers, different process capabilities and more complex operations. Opt for platforms that offer flexibility to add capabilities as needed.

7. Prioritize Advanced Analytics

Choose platforms that incorporate advanced analytics, artificial intelligence (AI), and machine learning (ML). These capabilities are crucial for many supply chain initiatives including:

• Demand forecasting: More accurate predictions based on historical data, weather patterns, and market trends.
• Inventory optimization: Balancing stock levels to minimize waste and reduce stockouts.
• Risk management: Identifying and mitigating potential disruptions through predictive analytics.

8. Prioritize Automation

Automating repetitive tasks such as historical data scrubbing, automatic algorithm selection, and identification of outliers, tasks and opportunities for improvement can save time and reduce errors. Look for supply chain planning technology that integrates workflow, configurable limits and active messaging to streamline workflows, improve efficiency, and allow your team to focus on higher-value tasks.

9. Ensure Integration with Existing Systems

Many food manufacturers use legacy systems for specific functions like ERP, CRM, or warehouse management. Ensure that any new supply chain planning software solution can integrate seamlessly with your existing infrastructure to avoid data silos and inefficiencies. A cloud-based platform can make integration smoother by connecting data sources and enabling real-time information flow.

Note: It is ok to start with simple flat-file integration while longer-term system-to-system integration is being developed. Doing so will help the implementation team gain a better understanding of the data needed, where it comes from, and how it needs to be formatted.

10. Prioritize Orchestration – Visibility and Collaboration

Invest in systems that provide near real-time, end-to-end visibility across the entire supply chain. This includes tracking everything from raw material sourcing to production, warehousing, and delivery for both internal and external operations. End-to-end visibility ensures transparency, enables proactive decision-making, and helps identify and resolve potential disruptions early.

Remember most disruptions happen outside of a company’s owned facilities. End-to-end visibility and collaboration should be a goal of almost all food manufacturing companies.

11. Prioritize Solution Providers’ Ability to Provide On-Going Support

The right solution provider can make or break the success of your supply chain planning solution investment. Choose a vendor that offers:

• Strong customer support: Seek ongoing technical support, training, and assistance with continuous system capability improvements. Implementing advanced supply chain planning should be viewed as an ongoing process, not a one-time project. Enhancements will help you progressively achieve more sophisticated capabilities. Continuous support from your solution provider is essential for this long-term development.
• Configuration options: Ease of configuration is key to ensure the solution is flexible enough to meet your specific operational needs without requiring extensive customization. If customization is necessary, it's a sign that the chosen solution may not be the right fit. Customizing a supply chain planning system can significantly complicate the process of staying up-to-date with the latest releases. Most leading providers release updates six or more times a year, and customization can prevent you from easily adopting these new versions. Avoid this by selecting a solution that works for you out of the box.

12. Plan for Future-Proofing

Technology is evolving rapidly, and what is cutting-edge today may be outdated tomorrow. Look for solutions that are at the forefront of innovation and can adapt to new trends, such the Internet of Things (IoT) for real-time monitoring, or AI-driven autonomous supply chains. Future-proofing your investment ensures that your supply chain remains competitive.

Note: If you are using analyst rankings like the Gartner Magic Quadrant, IDC MarketScape, or the Nucleus Research Value Matrix, look at multiple years of reports (and from multiple sources) to ensure the solution provider you are evaluating has been consistently rated on usability, functionality, and vision. Each of these research firms has a unique take on the market. To position your supply chain for the future, it is important that the solution provider you select has a consistent track record of being a leading provider for your industry.

By carefully selecting supply chain planning technology that aligns with your operational needs, you can build more agile, efficient, and resilient supply chain planning and orchestration capabilities that will help you navigate the complexities of modern food manufacturing.

About Henry Canitz

Henry Canitz is the Founder and Principal at NITZ Supply Chain Consulting, bringing more than two decades of experience as a seasoned supply chain leader. With expertise in designing, building, operating, and scaling processes and teams, Henry is a recognized expert, thought leader, and change agent. Throughout his career, he has held leadership positions across multiple industries with startups, mid-sized, and F100 companies, driving business growth through innovative solutions and robust process improvements.