Posted on: 9 August 2017
Running a mid-sized food processing plant from a medium-scale warehouse requires strategic decision-making or else you risk grounding processing operations. One area that requires careful consideration in the food processing industry is the processing function. While it is possible to order-processing supplies from different vendors, your plant stands to benefit more by working with a single contractor. For instance, instead of piecemeal management of food processing packages, you should consider turnkey food processing solutions. However, before making this decision, it is critical to understand instances when a turnkey solution will be beneficial to your food processing plant.
Slow Brand Building -- The food processing industry is highly competitive with different manufacturers trying their best to cut a niche for themselves. However, in case your plant is struggling in building its brand to customers, then you need to seek the services of a turnkey contractor. For instance, through turnkey solutions you can shift ingredient processing to a single contractor; all you have to do is aggregate inputs and process a finished product. Such a strategy frees up time and finances because you pay relatively less by engaging a single turnkey contractor. Consequently, you can focus on core business processes like branding.
Short Turnarounds -- As a food processing plant, you have to cater to different types of customers; therefore, you need to focus on quick turnarounds in your processing. However, if you depend on various vendors to deliver time sensitive orders as and when required, challenges can arise. It can be attributed to the fact that sub-contracting various aspects of your food processing plant might lead to non-ownership of the process or products. For instance, if one vendor is concerned with ingredients processing while another is tasked with packaging, any delays by either party will affect the supply chain negatively. However, if an entire core process is managed by a single turnkey service provider, each party can own the process and deliver short turnarounds.
Cost Benefits -- A food processing plant is a capital intensive venture; therefore, when it is up and running you need to be as cost efficient as possible. Two areas that eat up into such a venture are procurement and inventory management in the form of pilferages. To prevent your business from experiencing wastage, a turnkey solution will shift the responsibility of procuring raw materials and ingredients to a single contractor. Overall, you can save on the cost of production.Share