Top New Challenges the Food & Beverage Industry is Dealing With
Were you looking for good news in 2022? Sadly, I can't comply. We're two years into the COVID-19 pandemic, and there is no clear end in sight. Many of you in the Food & Beverage industry have already suffered from plant shutdowns and a decimated workforce. As if that wasn't enough, now there are…
New Challenges Facing the Food & Beverage Industry
As a provider of ERP (Enterprise Resource Planning) software solutions for the Food & Beverage sector, the team at makes a point of following industry-related news. And it's not good.
In fact, it's a bit disheartening. The emphasis has moved from shutdowns and staffing to…
Logistics and Transportation
That's not to say that plant shutdowns and staffing issues are no longer issues. They are. But instead of the focus being on factory workers, it is on truckers and dock workers.
A recent article in Business Insider noted that there is currently a shortage of more than 80,00 truckers. That is a staggering number! But "it's not just truck drivers — the semi-trucks they rely on are also facing a shortage, with some dealers already sold out for the year." 1
Further compounding the issue is the global computer chip shortage. Since every aspect of the supply is interconnected, the computer chip shortage has pushed prices for new and used semi-trucks significantly higher. Some truck sales prices have climbed more than 86% and are expected to continue rising in 2022.1
As a result, and because truck drivers move upwards of 70% of US freight, our ports are facing historic delays, with backlogs of as many as 105 container ships compared with zero to two pre-pandemic.1
So, the challenges our clients in the Food & Beverage sector are experiencing emanate from various shortages, backlogs, and rising prices, all of which are wreaking havoc on an already strained supply chain. The rising costs make it difficult for companies to do business profitably at a cost not excessive for their customers.
The Bottom Line
It is terrible enough for companies that produce, package, and distribute food and beverage products locally. For importers, the situation is far direr, with import fees that in many cases have quadrupled over the past year. The extent to which this will impact their sales is yet to be ascertained, but the statistics will begin to dribble over the next few months.
The Solution
One way to mitigate these companies' problems is to cut operating costs. That's where the team at Liberty Grove can help. DynamicsFoodERP from Liberty Grove allows small to medium food and beverage distributors and manufacturers to stay ahead of rapidly changing regulations, identify and head off potential supply chain disruptions, and more. Powered by Microsoft's Dynamics 365 Business Central Cloud ERP rock-solid technology, Food & Beverage companies can simplify operations to compete better.
Find some relief. Take the next step…
Contact by calling 630-858-7388 or emailing nav@libertygrove.com.
