22 September 2023 It is a general opinion, especially among managers, that the success of large companies is directly related to the efficient operational and managerial functioning of their logistics warehouses. In some sectors, this is even more pronounced, such as in companies dealing with food and beverages, as ensuring compliance with health regulations and the quality demanded by customers requires an organized and efficient logistics system. As this is a sector that deals with meeting the primary needs of the population and is directly and indirectly linked to its health, logistics management requires a refined methodology, requiring, for example: well-structured warehouses and inventories, respecting the regulations and the specifics of each product; temperature monitoring; contamination control; agility in delivery; compliance with health surveillance standards; among other details that involve food safety and quality for the end consumer. To this end, it is essential to invest in robust strategies and technologies capable of promoting traceability of goods and their storage in warehouses, quality control, and, above all, optimizing warehouse resources and reducing losses and damages. Finding this balance and maintaining all the equipment in the food and beverage warehouse is one of the greatest challenges for a logistics manager. In this article, you can better understand the WMS system and how it can help you manage warehouse logistics more effectively. Challenges in Food and Beverage Logistics Before specifically addressing the challenges of food and beverage logistics, it is important to highlight that we are talking about a rapidly growing market, which means that companies increasingly need to strive for excellence to stand out from the competition. According to data provided by E-commerce Italy, the food and beverage category recorded a significant increase in sales in 2022, with a 107% increase compared to the previous year. In this sense, prioritizing logistical efficiency is one of the fundamental factors for gaining market space. Faced with a scenario of great competition, high customer demands, and strict rules for quality assurance, the logistics manager assumes a great responsibility. Their management must be based on three axes: organizing the warehouse to meet all the specifics of the segment; keeping customers satisfied; and reducing losses, avoiding waste and ensuring business profitability. We can say that the main challenges for logistics managers in the food and beverage sector include: Organizing Products in Stock and Respecting Rotation Rules Food and beverages require special storage conditions in terms of temperature, light, humidity, etc. This means that, when defining the position of each product in the warehouse, it is necessary, in addition to seeking the best use of spaces and agility in processes, to consider the storage rules of each item, avoiding losses and damages. It is also essential to follow methods like FIFO, FEFO, LIFO, or LEFO so that stock rotation occurs efficiently. Therefore, implementing smart storage strategies is an extremely important factor in ensuring the quality of goods. Having Tight Control over Entry Product control should not only occur after storage. It is essential to ensure that all items entering the warehouse are in excellent condition, setting a limit on the expiration date of received products (shelf-life control). Ensuring Traceability Inside and Outside the Warehouse Monitoring product information and movements within the warehouse is the foundation for avoiding losses and ensuring quality. But it is important that this traceability also extends outside the warehouse so that, in the event of a recall, the company can quickly identify the locations where the batch was shipped, retrieve it, and avoid any subsequent issues. Avoiding Excessive Product Handling The more products are handled, the greater the chance of them being damaged. Therefore, in defining processes, particularly picking, the manager must apply strategies that reduce handling, ensuring, at the same time, efficiency and agility in its execution. Understanding Seasonal Logistics Knowing how to manage seasonal purchases represents a significant challenge in the supply chain involving food and beverages. Let’s take an example: a warehouse that sells and stores panettone has specific demands throughout the year, so the volume of orders will be higher from October to December, while in other months of the year, the demand for the product is low. Therefore, understanding consumer behaviors, purchase volumes, and outgoing items in each period of the year is a challenge in the sector. Understanding the Shipping Process If delivery time is crucial in almost all market segments, when we talk about food and beverages, it is not only important but fundamental, as time is also linked to product quality. It is up to the manager to meet a series of standards, such as organizing inventory, creating workflows for order separation, and making quick deliveries, to avoid, for example, reverse logistics and merchandise loss. Optimizing Delivery Routes Another challenge for the food and beverage sector is organizing the best routes and shipments for the end consumer. It is common to incur excessive expenses for shipping goods; however, it is important to strategically think about the best delivery routes, truck organization, and item separation based on their priorities. Eliminating Errors Caused by Manual Work Among the difficulties that a logistics manager may encounter in managing food and beverages is the lack of technological resources that optimize work. When all processes and controls are performed manually, the chances of error increase. Moreover, manually performing and monitoring activities within the warehouse can not only compromise productivity and efficiency but also cause damage to items in the warehouse due to delays and issues during the workflow. WMS System: Advantages for Food and Beverage Logistics So far, we have been able to identify the main challenges faced by logistics managers working in the food and beverage sector, but how can we address them and ensure that the warehouse has a high level of performance, productivity, and satisfaction? The answer lies in process automation with the WMS warehouse management system. The software was developed precisely to facilitate work and management, eliminating errors, increasing control, safety, and productivity. The WMS can assist managers in meeting all health surveillance standards, as well as ensuring quality and eliminating losses. With WMS, it is possible to achieve excellent results in terms of resource and labor optimization, a fundamental logistics strategy to increase your company’s competitiveness. Discover how WMS is a powerful ally in managing food and beverages: Greater visibility and inventory control Accurate management and assertive decision-making Increased traceability of products and processes Workflow optimization Reduce losses and increase accuracy Delivery monitoring Find the perfect solution for the food and beverage logistics sector In this article, you have learned more about the logistics of the food and beverage sector and the major challenges a logistics manager may face in ensuring the quality, safety, and profitability of the company. Additionally, you have understood how technology can be the differentiating element for operations within the supply chain, accelerating results, optimizing time, and saving resources. The WMS system can reduce operational costs and bring numerous results in terms of reach, visibility, productivity, and profitability for your company. If you, as a manager, want to take the next step toward the success of your warehouse, get to know the WMS system by Deagor and build a successful partnership with us and achieve excellent results. Contact us and speak with one of our experts. How does the WMS system assist in food and beverage logistics? Deagor WMS per ecommerce può aiutarti!