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.
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.
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.
You could argue that flexibility in food manufacturing has never been more important: new generations of consumers are craving more variety, the internet is reshaping how food is packaged and purchased and a global pandemic just reminded us all of how crucial (and fragile) the supply chain can be.
As we explained in this previous post, vertical farming is a farming technique where crops are grown indoors in a laboratory-like, climate-controlled space. Instead of a crop being limited to geographical regions that provide the ideal growing conditions, vertical farmers can fine-tune the level of water, nutrients, humidity and temperature, as well as light frequency, duration and intensity to create the most ideal environment possible for the crop to grow.
A handful of rural conventional farms are the mega-producers that supply vast swathes of the country with fruits and vegetables, generally located far away from the urban and suburban areas where their crops are shipped to be made available to consumers. The shipping journey — often spanning thousands of miles of highway or open ocean — leads to large amounts of waste and product loss, in addition to creating a large carbon footprint.
Vertical farming is a soilless method of farming that takes place inside a climate-controlled, laboratory-like environment. Farmers are able to fine-tune indoor spaces to the crops they want to grow, instead of being limited to growing crops that a particular outdoor area can support.
The ability to grow in-demand produce without the massive footprint of an outdoor farm, regardless of climate, has led to more vertical farming facilities in urban areas, where produce is grown, harvested and quickly shipped to retailers in the same city. This cuts down on product loss and shipping damage while increasing the shelf life and quality of produce once it hits the shelves.
Such impressive numbers may have you wondering if you should try the tofu and look into entering this emerging market. Let’s lean on the “know before you go” adage and help you make an informed decision.
The food and beverage industry continues to change rapidly, with 2019 seeing the growth of plant-based foods, health and wellness, and clean label products.
In 2020, conscious consumerism still remains at the core of industry trends. Consumers are factoring both their personal health and the health of the planet into their buying decisions, prioritizing factors like nutrition, convenience and sustainability.
Understanding what consumers are shopping for is imperative for food companies to stay ahead of the curve. That’s why we’ve compiled a list of the top trends that will impact the food industry in the new year.
You’ve likely heard a lot about Industry 4.0 and the impact of predictive and prescriptive maintenance on the food and beverage industry. It can sound overwhelming, but it doesn’t have to be. In fact, a few basic investments and the right partner can help streamline the way your facility operates and communicates
Food manufacturing facilities are complex and have various ecosystems operating at different levels, including:
But all of these systems don’t always talk to each other. In many facilities, an equipment failure triggers a lengthy domino effect: Maintenance staff has to assess the problem, create a work order, check if a replacement part is available and so on.
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