The last few years have been a very challenging environment for global ingredient supply chains, difficulties have included a pandemic, political instability and trade barriers. More recently war as well as rising inflation have added to the list of obstacles for supply chains.
More than ever when it comes to sourcing ingredients for food production it is important for companies to work with the most reliable and reputable partners. With that in mind, below are some key considerations that a food producer should consider as to avoid ingredient supply chain issues.
Secondary sourcing options
Secondary sourcing has becoming increasingly important, if your current supplier is unable to provide vital ingredients due to supply chain issues then having an additional supplier lined up can rectify this challenge. NCC Food Ingredients is uniquely positioned to assist you with your second sourcing. We have in-house sourcing and research capabilities to conduct manufacturer due diligence, as well as in-house operations and quality teams. Our sourcing team are skilled in analysing the production of a food ingredient and researching the supply chains of the manufacturers offering this product. By doing so our customers can be assured that an effective, reliable second sourcing option is chosen.
Managed additional stock
If as a company you have established that there are ingredients that run the risk of shortages in the future, then it is recommended that managed extra stock is stored. Though it does tie up finance and there is the risk of non-use, the costs that are associated with production down time pale in comparison to the expense. Savings from lean inventories and just-in-time supply chain practises are quickly lost to drops in revenue caused by production disruption and higher costs related to limited supply. If the additional stock is managed correctly and efficiently with planned rotation then, there need not be any wastage.
Failure to plan…
No one could have foreseen the combination of supply chain challenges that we are presently experiencing. That said it has stripped bare the vulnerabilities that exist, it is true that there is no fix all approach, however there are steps that can be taken that will soften the impact and blow. Doing so will not only cause less supply chain headaches but in turn will provide an advantage over competitors who may not be as prepared and flexible. We believe that it is now time to take a different approach, one which reflects the turbulence and unpredictability of this age. On one hand with low-risk materials utilising more lean inventories and just-in-time approaches. On the other with medium to high-risk materials improving resilience by having secondary sources lined up and additional managed stock to hand. Taking this perspective should reduce the risk and most importantly the associated costs.
About NCC Food ingredients
If you’re a food manufacture based in Ireland or the UK and are having food ingredient supply challenges, then we can assist. At NCC Food Ingredients we have over 50 years of experience with sourcing and navigating challenging supply chains. Providing our customers with integrated end-to-end supply chain solutions that has resilience built in as standard. By optimising the efficiency of your supply chain, we can save your company time, money, resources and remove the risk of production downtime. Our customer base ranges from international producers of foods and beverages to small niche artisan creators of fine foods. If you wish to know more, fill out the form below and we’ll be in touch.