A closer look at the challenges to process

Operational inefficiencies in the dairy industry often arise from reliance on outdated legacy systems and manual processes that lack integration. This leads to poor coordination between different stages of production and distribution. For example, many dairy plants still use manual scheduling and outdated equipment that can’t keep up with the demands of modern production volumes. This results in frequent bottlenecks, increased downtime, and higher operational costs.

A complex supply chain with multiple stakeholders –  including farmers, transporters, processors and retailers is another hurdle to navigate in the industry. Issues such as varying milk quality, fluctuating supply volumes, and the need for rigorous quality checks at every stage can overwhelm traditional management approaches. The need to comply with regional and international food safety standards requires comprehensive traceability systems to quickly identify and address any contamination issues, which is also often lacking in older operational frameworks.

Adding to this is the rise in sustainability concerns as consumers and regulatory bodies push for more environmentally friendly practices within the sector. Dairy processors are increasingly expected to adopt greener technologies that reduce water and energy consumption, lower greenhouse gas emissions, and enhance overall resource efficiency. Automated systems that optimize milk yield and reduce waste are becoming essential in the industry, but many plants struggle with the investment and integration of these technologies.

Data management issues compound these challenges, as the industry generates vast amounts of data at every stage, from raw milk analysis to product tracking. Without modern data management tools, dairy processors find it overwhelming to collect, store, and analyze this data effectively. This lack of integration across different data sources slows down the ability to make informed decisions that could drive efficiencies and improve product quality.

Cloud power and dairy’s digital revolution

In the face of such challenges, companies are increasingly turning to ERP and cloud technology which are at the heart of best practices in the industry. Digital transformation consultants in cloud consulting and data analytics provide solutions to many of the issues unique to the dairy industry.

• Enhanced data storage and accessibility: Infor CloudSuite Food & Beverage addresses data management issues by offering scalable cloud storage options that provide real-time access to critical data across the entire supply chain. Cloud-based architecture allows for centralized data access, and a dairy producer with a multinational presence can access quality control data from any location to cross-check with international standards.
  
  
• Improved collaboration: A workspace in real-time sync is a guarantee as CloudSuite Food & Beverage connects different departments and locations within a dairy processing facility through a unified platform. This integration facilitates seamless communication, whether it’s between production, quality control, or logistics. The platform spearheads coordinated efforts, such as managing batch recalls swiftly or adjusting production schedules in response to supply chain changes.

• Cost efficiency: When the need for extensive on-premises infrastructure is removed, there is significant cost savings. CloudSuite Food & Beverage minimizes the expenses associated with hardware maintenance, software updates, and IT management, allowing dairy processors to redirect resources toward more strategic initiatives.

Automation at the core

Automation is crucial in the dairy industry for boosting efficiency, consistency, and equipment reliability in the following ways:

• Increased production efficiency: Automation technologies enhance production efficiency in dairy processing plants by streamlining repetitive tasks and minimizing human error. An Australian food and beverage manufacturer supported by Fortude illustrates this impact; the company implemented Robotic Process Automation (RPA) to automate the invoice matching and posting process. This not only eliminated manual intervention but also processed over 70,000 transactions with improved accuracy and speed, reducing processing time from several hours to just minutes.
  
  
• Consistency and quality control: Automated systems ensure consistent product quality and adherence to standards by reducing variability and enhancing product reliability. The implementation of automated sensors and quality monitoring systems ensures products meet stringent quality standards required by both regulatory bodies and consumers. This approach not only minimizes the risk of contamination but also maintains consistent quality across the production line.
  
  
• Faster and smarter decision-making: Fortude’s implementation of intelligent automation in dairy processing transformed operations for a leading Australian dairy manufacturer. The company partnered with Fortude to automate their invoice matching and posting process using an AI-powered bot that seamlessly integrated with their ERP system. This streamlined their finance operations and also enabled the company to forecast demand more accurately.

Gain insights and optimize

Leveraging data and AI for decision making does not just make for improved returns, but also for smarter investments. Here’s how:

• Maintenance and downtime reduction: Predictive maintenance powered by data analytics helps prevent unexpected downtime and extends the lifespan of equipment, which is crucial in dairy processing where machinery is often run continuously. Predictive analytics help predict potential failures before they occur. For example, a dairy processor can identify early signs of wear and tear on critical equipment through automated alerts, allowing them to schedule maintenance during off-peak hours which can reduce downtime, help avoid costly repairs, and ensure uninterrupted production.
  
  
• Quality assurance: Machine learning algorithms play a critical role in maintaining high product quality by analyzing data to detect anomalies early in the production process. For a company in the dairy industry, automated sensors driven by a solid data analytics platform can ensure consistent quality across multiple dairy plants. This can guarantee that safety standards are met across all lines of production along with avoiding any discrepancies in product quality.
  
  
• Personalized customer experiences: AI-driven analytics help tailor products and services to meet specific consumer preferences and market trends. The food and beverage industry is not exempt from the fast-paced rise and decline in consumer trends that go viral on many online platforms. A company can maximize profits by tailoring products to fit these trends, and AI can gauge the lifespan of product popularity to increase both sales and sustainability.

Digital solutions in action

Fortude partnered with one of Australia’s leading food and beverage manufacturers to streamline its operations through the implementation of Infor CloudSuite Food & Beverage. By leveraging Robotic Process Automation (RPA) and Fortest, an automated testing solution for Infor M3, the manufacturer achieved significant efficiencies. The way in which RPA helped the manufacturer are noted in a section above.

Additionally, Fortude provided comprehensive support in areas such as supply chain module implementation, data migration, and solution rollout. With Fortude’s managed services, the manufacturer successfully reduced IT operations costs, enabling a seamless, continuously updated Infor ecosystem.

Next steps

In conclusion, there is no doubt that the dairy industry will face immense pressures moving forward. Despite promising forecasts to come, regulatory authorities and consumers are increasingly skeptical of greenwashing practices in the industry and are continuously pushing for more ethical and sustainable policies.

Dairy manufacturers need to improve efficiencies across all operations if they are to move ahead. By implementing digital solutions at every stage, more room is made for innovation and growth across a company. It is truly the equivalent of both having your cheese and eating it.

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