July 10 2020

‘FIVE FACTORS; - 5 most common distribution issues for Dairies

Dairies face a lot of competition and standards are high. Customers can easily switch to one of your competitors if their ever-changing needs are not met, and this means competition between Dairies is huge.

This is the same for small, independent Dairies who produce artisan products, or larger Dairies who have been established in the Industry for decades.

The nature of this competition and the short shelf-life of the majority of the produce from Dairies means there are a number of Industry-wide barriers that these Businesses face.

In this infographic we’ve discussed the 5 most common barriers to growth that Dairies face:

Internal Processing

Paper-Based Systems all have a reliance on manual work - This work can be tedious, prone to error and can result in widening inefficiencies which slow growth. Similarly, lost paperwork and the duplication of effort can have detrimental impacts on your team and customer relationships.

On the other side, some Digital Systems are tricky to learn and complex to use. This means new staff take longer to train and the work that was supposedly made easier by the Digital System is not actually any easier.

An easy-to-use System that automates tedious tasks means you could direct your efforts towards customer service and your primary tasks each day.

Monitoring Deliveries

With the need for quick stock turnover and the urgency of short shelf-live products, monitoring deliveries, keeping customers informed and meeting ETA’s is vital.

This is where many Businesses fall short - The Van is loaded and leaves the warehouse, but then it is unclear when the Delivery will be made and updates are infrequent.

This leads to the next point of staggered communications.

Communications & Real-time Data

Mobile workers are unable to access up-to-date customer information remotely, limiting their ability to sell effectively and negatively affecting customer service.

This is one of the most vital reasons Dairies do not grow as quickly as they could - A lack of transparent communications between customers and drivers and offices, and the lack of real-time data of Deliveries means everyone is kept in the dark.

A lack of data exchange between mobile and office staff means completed orders cannot be invoiced until mobile workers return to the depot at the end of the day, increasing the time between delivery, invoicing and receiving payment from your customers.

Mobile workers also need access to real-time data on inventories and stock levels if they are to maximise upsell opportunities, which in turn leads to improved customer satisfaction.

Spoilage

High levels of spoilage due to poor inventory control mechanisms and lack of reporting systems to identify stock variance and the source of spoilage.

Inventory Control

Another reason for inefficient processes is poor Inventory control. This is particularly important for Dairies to correct given the quick expiration of the produce. Without proper historical records of stocks and products, it is difficult to predict for the future. With inventories, this would mean Dairies do not restock at optimum times and they either have too much or insufficient stocks, which leads to ordering issues and customer dissatisfaction. Furthermore, poor inventory management leads to increased wastage, which is obviously very damaging to profits.

Addressing these issues means your Dairy can grow quickly and curve competition. You can find out more about how we cater specifically for the needs of Dairies here, or read our article on the need for Dairies to adopt a Workforce Management System.

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