How can the animal feed industry benefit from the Cloud?
Population growth and the expansion of the animal feed industry are closely linked. With the global population estimated to reach 10 billion by 2050, consumption of meat, seafood, and dairy is set to increase, despite a shift toward plant-based proteins in some parts of the world.
According to the OECD-FAO Agricultural Outlook, the global meat supply will reach 374 tons by 2030, largely driven by higher poultry consumption as an affordable protein source. This growth demands cost-effective animal feed production, but fluctuating raw material prices, supply chain issues, and environmental concerns like deforestation and greenhouse gas emissions pose challenges. Similarly, the aquafeed industry is set to expand significantly, with the market projected to reach USD 112.27 billion by 2032, but the industry faces a similar set of challenges.
How can the animal nutrition industry tackle the challenge of scaling operations sustainably? The answer lies in digital transformation through cloud-based technologies. Cloud ERP solutions enable animal feed manufacturers to enhance supply chain transparency, reduce waste, leverage data-driven insights, improve forecasting capabilities, make informed decisions, and foster collaboration. This blog further explores how cloud-based transformation can benefit the animal nutrition industry.
Better resource management
The animal nutrition supply chain, like the human food and beverage supply chain, is complex, involving numerous stakeholders. Animal feed manufacturers must stay informed about changes throughout the supply chain. A cloud ERP system provides the visibility needed to monitor the origins of raw materials, their compositions, shelf life, inventory levels, and delivery timelines. Comprehensive supply chain visibility supports faster demand fulfillment, as manufacturers can proactively replenish raw materials. This transparency also ensures that quality standards are maintained, reducing hygiene risks and minimizing waste.
Cloud ERP solutions also optimize operational efficiency. Manufacturers can monitor production processes, energy consumption, and forecast supply and demand more accurately. Additionally, they gain insights into potential production or supply chain delays. By managing raw materials, controlling energy use, and setting prices for end products to address rising demand and environmental concerns, cloud solutions prioritize sustainable manufacturing.
One animal nutrition manufacturer making strides in sustainability is Nutreco. In line with their 2025 roadmap, Nutreco plans to source marine ingredients from certified fisheries only, use deforestation-free plant ingredients, and reduce the use of antibiotics in animal feed. The company also plans to reduce greenhouse gas emissions by 30%. All of these impressive targets are made possible because the company uses a cloud ERP solution.
Data-driven insights for higher productivity
Data plays a crucial role in ensuring high-quality end products, improving operational efficiency, and achieving sustainability. Cloud ERP solutions provide a centralized platform for data access and analysis, enabling better decision-making. Real-time insights into production lines, machine functionality, and output levels help manufacturers optimize operations and reduce downtime caused by equipment malfunctions. With prior knowledge of maintenance schedules, they can minimize disruptions to production.
A better grasp of data can also help:
- Compare demand patterns across quarters using historical data.
- Support more informed decision-making, leading to improved sales and delivery processes.
- Identify opportunities to optimize cost structures by analyzing supply chain efficiencies & cost data over time.
A global leader in sustainable aquaculture feed solutions recently partnered with Fortude, to transition its operations to Infor CloudSuite Food & Beverage. With 17 production facilities worldwide, the company has successfully upgraded its systems in four countries to move towards the goal of building a digitized, global enterprise.
Enhanced supply chain collaboration & seamless integrations with third-party systems
Successful cloud strategies involve data sharing across multiple sites, combined with strong leadership, a mindset open to change, and collaboration. Cloud ERP systems provide a platform for sharing data, allowing team members to access the necessary information anytime, regardless of their location. This unified system enables flexible, collaborative decision-making and automates routine tasks, enhancing team efficiency.
Effective collaboration also requires the integration of various specialized software systems across the organization. Cloud-based ERP solutions enable seamless integration with systems such as:
- Manufacturing Execution Systems (MES): MES connects the factory floor with enterprise-level operations, enabling real-time monitoring of production processes. By integrating MES with cloud ERP, manufacturers can track production statuses, machine performance, stock levels and quality metrics more effectively. This integration helps identify production bottlenecks, optimize workflows, and ensure consistent product quality, thereby reducing downtime and waste.
- Warehouse Management Systems (WMS): Integrating WMS with cloud ERP streamlines inventory management and warehouse operations. It enables accurate tracking of inventory levels, location management, and efficient picking, packing, and shipping processes. This real-time synchronization ensures that raw materials and finished goods are readily available, helping manufacturers meet demands quickly while minimizing excess inventory and storage costs.
- Weighbridge Systems: These systems are crucial for industries that rely on precise weight measurements for raw materials and finished products. When integrated with a cloud ERP, weighbridge data automatically updates inventory records, improving accuracy and compliance with regulatory standards. This integration reduces manual data entry, minimizes errors, and provides a comprehensive view of inventory movement and stock levels.
- Feed Formulation Software: Cloud ERP solutions can also integrate with feed formulation software, which is used to optimize the nutritional composition of animal feed. This integration allows manufacturers to adjust formulations based on real-time data on raw material availability and cost. It ensures that feed meets quality standards while optimizing production costs, enabling manufacturers to respond quickly to changes in market demand or ingredient prices.
Cost-effective catalyst for scaling and innovation
Feeding an increasing number of livestock in times of inflation, price fluctuations, and high energy costs requires a tight rein over expenses and resources. Manufacturing large quantities of animal feed requires raw materials that comply with regional safety regulations. This is yet another benefit of supply chain transparency – it helps you scale your manufacturing operations in a way that doesn’t compromise quality standards.
Animal feed manufacturers can leverage the centralization that Cloud ERP solutions provide for managing raw material data and formulas, changing recipes for higher nutrition, and introducing new products. Automating processes will further help product development, as these manufacturers have the flexibility to reallocate their teams and budgets towards research and development initiatives.
Cloud ERP systems are not as costly as maintaining on-premise systems, as it enables manufacturers to maintain global operations while saving on their IT infrastructure capital expenditure.
What’s next for you?
Animal feed manufacturers are increasingly adopting cloud ERP solutions to meet the demand for affordable, sustainable nutrition. These solutions enhance supply chain transparency, improve product quality, minimize waste, and promote sustainability. Cloud ERP platforms provide real-time data on raw materials, production processes, inventory levels, sales, formulations, and finances while fostering collaboration for scalable operations as well.
Keen to learn more? Explore resources like how the animal nutrition industry can overcome challenges with technology, getting started on multi-site cloud migration, and our experts’ take on factors that make digital transformation a success. At Fortude, we’ve helped animal feed manufacturers realize the benefits of adopting cloud-based technology. Reach out to start a conversation with us.
FAQs
Cloud migration enhances sustainability in the animal feed industry by providing better supply chain transparency and optimizing resource management. With real-time data access, manufacturers can reduce waste, manage raw material sourcing responsibly, and track their environmental impact.
Cloud ERP solutions streamline operations by improving supply chain visibility and enhancing production efficiency. They enable manufacturers to monitor inventory levels, optimize production processes, and manage resources effectively. By automating routine tasks and facilitating collaboration across teams, these solutions help companies respond quickly to market demands, minimize downtime, and ultimately lower operational costs.
Cloud ERP systems centralize data, providing manufacturers with real-time insights into production, inventory, and market trends. This data-driven approach enables informed decision-making, enhancing forecasting accuracy and identifying cost optimization opportunities. By analyzing historical data and demand patterns, manufacturers can adjust their operations dynamically, improving productivity and ensuring high-quality end products.
Subscribe to our blog to know all the things we do
