Real-Time Performance Management Critical to Long-Term Success
Globalization, consolidation, RFID and the rapid growth of big box retailers are clear indicators that traditional modes of operation will no longer suffice.
Virtually all markets are under pressure to meet the changing demands of their customers. In the food and beverage industry these demands are not only coming from the end consumer, but also from distributors and retailers who are placing their own demands on manufacturers in the form of VMI (vendor managed inventory), RFID tagging, and custom packaging. Trying to predict what the market will demand based on data that is several months or even one month old will no longer suffice. To successfully meet these demands, food and beverage manufacturers must migrate to a real-time performance management (RPM) model, where demand is tracked daily, if not hourly, to enforce a pull-based supply chain rather then the traditional push model.
A focused program of continuous improvement that drives an organization toward exceptional performance is mandatory. Maintaining that competitive advantage, however, requires monitoring of performance as well as scanning the environment for changes in what customers want and what competitors are doing.