Make to Stock vs. Make to Order: Why One is on the Rise (and What Manufacturers Need to Know)

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Make to Stock vs. Make to Order Why One is on the Rise (and What Manufacturers Need to Know)

Historically, most food and beverage manufacturers have used some combination of production strategies to develop their products, but recent supply chain disruptions and consumers’ desire for variety are forcing many to rethink their approach.

Make to stock (MTS) is a traditional “build-ahead” production strategy in which manufacturing plans are based upon sales forecasts and/or historical demand. A company using this approach would estimate how many orders its products could generate, and then supply enough stock to meet those orders.

Make to order (MTO), on the other hand, is a production approach in which products are not made until a confirmed order is received. This typically allows consumers to purchase products customized to their specifications.

 

Will COVID-19 Change the Future of Food Plant Design?

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Will COVID-19 Change the Future of Food Plant Design?

The COVID-19 pandemic brought a number of immediate and temporary changes to daily life: reduced occupancy limits, partitions, social distancing, one-way stairwells and more.

While these short-term adaptations were necessary to mitigate the spread of the virus, will the pandemic change the way facilities are built in the long term? The likely answer is, not dramatically.

However, it is shaping the way we think about designing these spaces. Let’s look at some examples of trends we may see in the post-COVID era.

 

4 Ways Site Location Can Affect Construction Costs

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Building anything right now can be daunting and expensive, much less a large industrial facility. In the wake of the COVID-19 pandemic, the cost of construction materials has skyrocketed, labor is scarce and demand is surging. But that doesn’t mean the food supply chain can stop.

Food manufacturers and distributors still have customers to serve — and, for some, that still means investing in a new facility. At a time when construction costs are high, a company might make up for it in savings by reconsidering where the facility is built.

 

4 Tips to Get Your New Process Facility ‘Off the Ground’

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4 Tips to Get Your New Process Facility 'Off the Ground'

Facilities that support process operations produce some of the most expensive and complex buildings in the world. And they run the gamut: “Process operations” can range from baking desserts such as cakes to processing raw meat for grocery operations, to manufacturing parts and components for U.S. Navy submarines. 

So what do facilities across such diverse markets have in common besides being founded on their process? For one, the costly and painful struggle of getting the project started. Many times, important early stages are executed out-of-order or even too late. Let’s look at four recommendations that may seem obvious, but if executed properly, will take some of the pain out of beginning your next process facility.

 

An Inside Look at Sunsweet’s Prune Processing Facility in South America [PHOTOS]

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An Inside Look at Sunsweet’s Prune Processing Facility in South America [PHOTOS]

Sunsweet, a grower-owned cooperative based in California, is the world’s largest and most famous brand of dried tree fruits. When the company decided to expand their prune processing facility in Chile, they partnered with Stellar to plan, design and navigate the international construction process.

Today, the processing facility is a full-fledged operation supporting Sunsweet’s ongoing growth. Given its complexity and the company’s investment in cutting-edge features, the plant also serves as a “learning lab” where Sunsweet can test ideas and experiment with different processing efficiencies that will be applied to its future facilities.

 

Sunsweet Case Study: 3 Tips for Designing an International Processing Facility

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When Sunsweet decided to expand their existing facility in Chile and needed design help, they turned to Stellar for a partner to help them not only design the facility but guide them through the entire process. From selecting the right site, to understanding sanitary design principles which ensure food safety, to vetting of local subcontractors, choosing the right firm to support your project is one of the most important decisions you face.

 

3 Applications for Big Data in Food Plants

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3 Applications for Big Data in Food Plants

Big data comprises the large volume of data that businesses collect on a day-to-day basis. The question is: Are you taking advantage of it?

Data and analytics tools can be customized to meet your facility’s unique needs and goals — whether you simply want to gain insights to resolve certain pain points or install system-wide automation technology that takes your efficiency to the next level. 

Let’s take a look at three applications for big data in a food processing facility:

 

Big Data in Food Plants: Short-term and Long-term Investments that Yield ROI

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Big Data in Food Plants: Short-term and Long-term Investments that Yield ROI

Today’s big data tools and technology can create significant cost savings in modern food and beverage plants — and the return on investment (ROI) can come in the form of reducing losses or improving production.

Every company has a different outlook when it comes to capital spending, though, with some focused on short-term investing and others taking a long-term approach. Let’s look at some short-term and long-term options when it comes to big data and analytics tools.

 

Project Commissioning: The Key to Meeting Your Food Plant’s Construction Goals

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Project Commissioning: The Key to Meeting Your Food Plant’s Construction Goals

Constructing a new food plant is more complex than ever. Increased competition, changing consumer trends, automation technology and energy efficiency are all factors that owners must consider.

Among all these moving parts, it can be easy for a plant owner’s original vision or goals to be lost or not fully realized. That’s why commissioning is becoming a critical part of the design-build process. A commissioning partner works with the owner throughout the design-build process to ensure their goals are achieved.  

 

Machine Learning and AI in Food Plants: Where to Start

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Machine Learning and AI in Food Plants: Where to Start

So you want to incorporate artificial intelligence and machine learning into your food processing facility — but where do you start? These tools have grown increasingly popular, and you’ve likely heard people discussing different platforms like Amazon Web Services (AWS), Google Cloud and Microsoft Azure. But how do you get access to these tools and what can they do?

Three layers of cloud computing

When it comes to introducing machine learning to your processing, think of it as a three-tiered ecosystem:

1. Service providers (AWS, Google Cloud, Microsoft Azure)

2. IoT solutions partners (system integrators, data experts, etc.)

3. End users (Facility operator, plant owner, etc.)