In the face of market volatility, the meat industry must find ways to remain competitive and resilient. Rising costs, supply chain disruptions, and labor shortages require businesses to rethink their operational strategies. By investing in modern technology, meat producers can significantly reduce costs, increase efficiency, and safeguard their business against economic fluctuations. Here are five key areas where targeted investments can make a big difference.
1. Electronic Data Interchange (EDI): Automate and Cut Costs
Meat companies can cut their costs to one third by transforming their paper-based processes to electronic order, delivery and billing management using EDI. While EDI is not new, modern solutions have made it significantly more powerful. Today, good EDI systems can:
- Automatically validate prices, delivery dates, and order patterns
- Integrate with 3PL providers and public pricing data sources
- Eliminate the need for manual data entry, reducing labor costs
By fully integrating EDI, companies can streamline operations, eliminate redundant processes, and save time. And they can cut their costs to one third by transforming their paper-based processes to electronic order, delivery and billing management using EDI.
2. Document Management: Save Time and Improve Accuracy
Document Management Solutions have been around for decades now as well, but storage got cheaper and scanning software got smarter. With Simple Archiving Systems knowledge workers become approximately 15% more efficient and effective according to IDC. Researchs show a 4-fold time saving in archiving, and an 18-fold time saving in document research.
More recently, these solutions have even expanded:
- Workflow Management Systems route documents through the organization, processing purchase requisition approvals, travel requests, maintenance of product specifications and quality documents and other procedures – regardless where people work, even mobile via email or Web access.
- AI solutions can ‘look’ at documents and do some repetitive tasks such as recognizing an invoice and its content and determine the meta data – a process that used to require a human.
- Contract Management software extends the idea from transactional processes to contracts that have longer durations, such as building leases or cell-phone contracts.
3. Labeling, Picking & Shipping: Optimize Operations
Meat producers can reduce paper consumption by approximately 1,000 kg per €100 million in revenue by implementing paperless picking solutions. More importantly, these technologies improve efficiency and accuracy, reducing costs related to:
- Order errors and returns
- Additional deliveries and cancellations
Modern picking methods such as mobile data capture increase productivity and warehouse efficiency. Research shows that integrated order staging leads to:
- 25% higher total productivity
- 10–20% less space usage
- 15–30% greater warehouse efficiency
By investing in automated picking solutions, businesses can improve order fulfillment speed and accuracy while minimizing waste and rework.
4. Production Planning: Maximize Efficiency and Reduce Waste
Effective production planning ensures that meat businesses can adapt quickly to market changes while maintaining efficiency. Integrated ERP systems with production planning modules help to:
- Optimize resource use, including labor, machinery, and raw materials
- Identify and act on excess or soon-to-expire inventory
- Improve forecasting for volatile demand patterns
For example, a German company reduced their weekly planning time by three days using an integrated planning solution. Smart ERP tools also help businesses in industries like meat processing, where matching supply to demand is complex. Whether managing a push or pull supply chain, flexible planning solutions help businesses adjust production levels quickly.
5. Lean Warehousing: Balance Inventory and Reduce Costs
Finding the right balance in inventory management is crucial. Overloaded warehouses lead to high capital costs, while stock shortages can halt production. Many businesses suffer from holding excess inventory of seasonal or unsold goods, leading to unnecessary storage costs.
ERP systems with advanced inventory management functionalities help by:
- Monitoring stock levels intelligently
- Calculating optimal order quantities
- Automating replenishment notifications
By optimizing inventory, businesses can cut costs by approximately 30% while ensuring just-in-time availability to meet demand.
Conclusion
Investing in technology-driven solutions is no longer optional for businesses that want to remain competitive. By leveraging modern EDI, document management, automated warehouse solutions, production planning, and lean inventory management, they can reduce costs, increase efficiency, and build resilience against future uncertainties.
Adopting these strategies today will ensure that your business is well-prepared for whatever challenges the future holds.