2 days ago
- Business
- Business News Wales
Just-in-Time Is ‘No Longer The Answer' For Food and Drink Manufacturers
The food and drink manufacturing sector needs to rethink its reliance on just-in-time supply chains, as continued disruption and cost pressures expose the limits of a model that once delivered efficiency but now risks instability.
'Just-in-time has been a model that has served us all very well for decades,' said Linda Grant, Managing Director at BIC Innovation. 'But I'm not sure it's going to work as well as it did going into the future.'
With global supply chains still vulnerable to shocks, from geopolitical tensions to extreme weather, businesses are under pressure to build more resilience into their operations. For many, this means challenging long-standing assumptions about efficiency and re-evaluating their exposure to risk.
Linda said BIC Innovation is working with food and drink manufacturers to take a more strategic approach to supply chain management.
'One of the ways we support businesses is by helping them look closely at key parts of their supply chain and carry out risk assessments,' she said. 'What's critical is identifying what would happen if you couldn't get hold of a key ingredient or bit of kit.'
She offered a practical example:
'If you're relying on Sicilian lemons, is that something your consumer would really notice if it changed – or could you innovate away from it? If something isn't absolutely vital to your consumer offer, then that's an area where you might have more flexibility.'
But it's not just about ingredients. Equipment breakdowns, service delays, and the availability of specialist engineers all form part of the wider risk landscape. Linda said that taking time to think through the consequences of disruption – however unlikely it might seem – is increasingly important.
'Sometimes you have to start thinking about the unthinkable,' she said. 'Because if it happens, you need to have a plan. Waiting until a crisis hits is never the best time to make decisions.'
John Taylerson, Scale-up Programme Lead and Senior Associate at BIC Innovation, noted that just-in-time has become a liability in some cases.
'As we know with the supply chain, just-in-time can often be just too late,' he said. 'What we need instead are systems that provide better information – about market conditions, budgeting and planning – so that businesses can schedule production in a way that makes sense and reduces waste.'
John highlighted the role of technology in building that capability.
'Introducing systems like ERP software can help anticipate what your production and sales cover will be. It enables businesses to plan more efficiently and avoid the unnecessary cost of heating and cooling equipment multiple times,' he said.
Product shelf life is also part of the equation.
'Better barrier materials can extend the life of a product,' John added. 'That gives businesses more flexibility in the supply chain and allows premium products to retain their value for longer.'
Linda said one of the biggest challenges is carving out time to think strategically.
'When you're in the day-to-day of getting orders out and dealing with labour issues, these questions often get pushed aside. But resilience has to be built in – otherwise you're making big decisions under pressure.'
Linda and John discuss this and more in the BIC Innovation podcast episode Risk and Resilience in the Food & Drink Sector – Insights from BIC Innovation . Listen to the podcast here
