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1、Unlocking increased yields while reducing cost and waste through innovation PURSUING FOOD MANUFACTURING EXCELLENCE WITH BLENDING OPTIMIZATION1THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONA

2、N INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE AREMEET THE EXPERTSGeoff Locket has over 20 years of advanced planning solution design,development and deployment experience in various glob

3、al geographies across multiple Food&Beverage industries,including fresh produce,dairy,packaged ingredients,snacks and meals,sauces,protein,canned goods,brewing for on and off-trade,soft drinks distribution and other associated industries.Roel Van Den Broek has over 20 years worldwide experience in m

4、anagement consultancy and sales in Supply Chain Planning&Optimization and Artificial Intelligence.His industry expertise spans a wide range of sectorsnotably Logistics,Retail,Postal&Express,Aviation,Commodity Trading and Food Manufacturing.Geoff LocketSenior Industry Process Consultant,DELMIARoel Va

5、n Den BroekChief Revenue Officer,The Logic Factory2THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZAT

6、IONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE ARETHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESCompanies require a high level of agility to keep pace in the food manufacturing sector.Shifting market trends and consumer demand mean that manufacturers who can deliver the latest prod

7、ucts to the market in the shortest time are well-positioned to reap the benefits.However,this is just the tip of the food industrys challenges.The highly competitive nature of the market means that many products are sold on narrow profit margins,and the volatility in raw ingredient prices can strong

8、ly affect a companys bottom line.Managing the operational complexity in food manufacturing can also be a delicate balancing act for companies as they deal with factors like food safety constraints,ingredient shelf life,inventory and processing capacity.One major challenge that is further amplified b

9、y global crises such as pandemic and international conflict is supply volatility.With suppliers everywhere hit hard by past and current disruptions,food manufacturers are scrambling to expand their supplier base in order to improve supply chain resilience and maintain business continuity.3THE EXPONE

10、NTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENC

11、EWHO WE AREOne area that provides significant opportunities for food manufacturers to drive profitability is in the blending process.With the right blend,companies can optimize their costs,sourcing and use of ingredients,as well as production output.However,blending affords a level of flexibility th

12、at also raises the complexity exponentially,making it impossible for planners to calculate and identify the best blend using traditional manual or spreadsheet-based approaches.Relying on digital planning solutions can also benefit manufacturers in many more ways,including inventory management,waste

13、reduction from improved planning,and business continuity from working around shortages in supply.The ability to test blends and recipes for extended shelf life while predicting its impact on production,inventory and profit will also help food manufacturers to make better decisions in line with busin

14、ess KPIs.The flexibility and challenges that come with blendingHow an optimization solution can provide decision support in food manufacturingHow to unlock supply chain synchronization through an integrated planning solutionDELMIA Industry Process Expert Geoff Locket says that the last 18 months hav

15、e been“almost the perfect storm”for food manufacturers,exposing opportunities for improvement in three key areas that companies are now working towards through the implementation of new planning solutions.Many companies have been moving towards improving resilience by enabling themselves to leverage

16、 multiple sources of supply for raw key materials.At the same time,they want to have agility in their production planning space so that they can potentially move products to different production lines or plants with similar capabilities when under pressure.Geoff Locket,Senior Industry Process Consul

17、tant,DELMIA“Supply resiliency and planning agility enabled by having multiple sources of supplyExpanding the workforce to improve production capacity for non-automated processesLast mile distribution to cater for more online purchases and doorstep deliveryRead this eBook to learn about:4THE EXPONENT

18、IAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEW

19、HO WE AREAN INTRODUCTION TO BLEND OPTIMIZATIONThis process creates many blend options to choose from but knowing which is the right one depends on a combination of many factors,including availability of raw materials.Substituting ingredients that are unavailable might be possible for some products,b

20、ut the end product needs to meet the same taste and feel while still being feasible to produce in terms of cost and other factors.The waffle example above is,of course,a highly simplified analogy.Real-world food products use far more ingredients and have many tolerances which add to the complexity.T

21、he average food manufacturer also simultaneously plans for multiple products with numerous options for blends and manages all ingredients required by the production plant as well as production capacity.With plans being made across multiple planning horizons from weeks to months ahead of time,this tu

22、rns everything into a big and impossibly complex puzzle.To illustrate the process of finding the right blend,lets look at a simplified example using waffles.The table below shows the different ingredients required to make the product and the price of each ingredient.The planner has a limited amount

23、of flexibility to adjust how much of each ingredient to use without departing from the provided recipe that meets the customer taste test.With this information,it becomes possible to work out how to optimize this blend within the predetermined ranges for each ingredient so that the final product can

24、 be produced at the lowest possible cost per batch.Ingredient(unit)Price per unit(in$)Minimum unitsMaximum unitsIdeal recipe for one batchCost per recipe(in$)Dry mix(cups)0.250.801.201.200.30Eggs(ea)0.501.002.001.000.50Milk(cups)0.350.501.501.490.52Butter(tbs)0.201.003.001.000.20Total cost per batch

25、1.525THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLA

26、NNING EXCELLENCEWHO WE AREBlending is applicable to a wide variety of processed food products,including(but not limited to):With advanced optimization technology,food manufacturers can cut the time needed to perform complex calculations from days to just minutes.This can also help them tackle other

27、major challenges,such as:Varying customer demandVolatile supplyMany SKUsTraceability challengesCommodities impacted by climatic and geopolitical eventsRecipe complexityProduction bottlenecksShelf life constraintsProcessed meat(e.g.sausages and burger patties)Dairy products(e.g.various milk products,

28、butter,yogurt and cheese)Various beverages(e.g.fruit juice,coffee,carbonated beverages,alcoholic beverages and more)Bakedgoods(e.g.bread,cakes and pastries)Breakfast cerealsPackaged snacksInstantfoodIngredients(including instant oatmeal)(e.g.chips,cookies,snack bars,candy,chocolate and more)(e.g.bab

29、y food,condensed soup,instant noodles,frozen meals and more)(e.g.flour,oils,milk powder,fats,starch and sugar syrup)123456786THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLU

30、TION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE AREWhen formulating ingredient quantities between limits,the number of possible recipes multiply rapidly,raising the complexity of the calculation to an impo

31、ssible level.Additionally,ingredient pricing is only one factor in the complex blending equation.The availability(or lack thereof)of certain ingredients from suppliers can add further complexity to the equation,and this variable can change over time,making it necessary for planners to adjust the ble

32、nd accordingly whenever the situation changes.There are many other factors and questions that need to be taken into consideration during the planning process:With so many variables and constraints to consider,the reality is that the process of identifying the best blend is far too complex to be work

33、ed out by a human planner equipped with just a spreadsheet and their own wits.This is where optimization technology comes into the picture,providing food manufacturers with the support they need to make the best decisions in blending within the context of their end-to-end supply chain.How much raw m

34、aterial to purchase?How much raw material to keep in inventory?How much raw material to process?Food safety constraintsTransportation and logistics?Batch mix composition and production quantity?Which suppliers to source from?THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATION7THE EXPONENT

35、IAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEW

36、HO WE AREDELMIA Quintiq equips food companies with the capabilities to make the right choices and enable optimized decision support in blending and formulation.The solution takes into account all business rules,industry regulations,raw material constraints and more to help companies identifyout of m

37、illions of possibilitiesthe right blend that aligns with company KPIs such as:As a single integrated solution,DELMIA Quintiq can effectively replace manual and legacy formulation systems,material forecasting workbooks and countless spreadsheets.The powerful optimization capabilities cut the planning

38、 time from days to just minutes,allowing planners more time to use their expertise to focus on disruptions.By evaluating millions of different scenarios for blend optimization and recommending the best one,DELMIA Quintiq helps food manufacturers to make the best decisions and drive significant impro

39、vements in production,in line with operational and business goals.Business value unlocked through blend optimization:More accurate forecasts on raw material pricing for improved sourcing decisionsFaster decision-making that considers all business rules,regulations and constraintsIdentify opportuniti

40、es for significant savings by choosing the best blendAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONCost efficiencyProduct qualityProfitabilitySustainability(ethical sourcing,responsible production,reduction of food waste)8THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXP

41、ERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE ARETHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONBlending

42、 is only one of the many complexities that food manufacturers deal with,and many companies rely on DELMIA Quintiq for not just their blending optimization needs,but also other aspects of supply chain and production planning to drive excellence across their global operations.For true end-to-end suppl

43、y chain synchronization,manufacturers have an opportunity to transform their operations by implementing the wider DELMIA portfolio of solutions,which can help with everything from integrated business planning to production planning and distribution.As a single source of truth,DELMIA helps manufactur

44、ers streamline their operations through full integration with other systems,including manufacturing operations management.IntegratedFully integrated analytics applications,serving as a single source of truth for all information,including data on supply and demand,shop floor activities,warehouse data

45、 and more.CollaborationDELMIA creates opportunities for more efficient collaboration between departmentseliminating operational silosas well as across remote teams.SimulationSimulate what-if scenarios in business and operations to make optimized decisions that will yield the best results in line wit

46、h company goals for profit and sustainability.Operations ManagementHave end-to-end visibility from upstream and primary distribution to production operations,scheduling and inventory management for improved control over the whole supply chain.9THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMI

47、ZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE AREUnlock business value across the en

48、tire food supply chain:Shorter planning times that yield better resultsBusiness agility from accurate forecasts on supply and demandImproved supply chain resiliency and business continuity by working around supply shortagesJust-in-time inventory management for cost savingsEnd-to-end visibility and c

49、ontrol over plant operationsStreamlined supply chain operations for improved production yield and minimal wastageOptimized decision-making in line with business KPIs for profit and sustainability10THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY

50、 CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE AREWhile disruption will continue to have significant impact on the global food manuf

51、acturing industry,agile companies equipped with the correct planning tools and processes can not only adapt to disruption,but even improve their supply chain and operational efficiency.Blend optimization is proven to be a valuable strategy in helping food companies to drive significant savings in pr

52、oduction time and cost,but it is impossible to execute with legacy formulation systems and processes.Food companies have an urgent need to embrace digital transformation so they can drive more effective planning and unlock greater business value.DELMIA Quintiq has the technology and capabilities to

53、help food manufacturers realize their vision of digital transformation to drive excellence in operations and supply chain.Powerful optimization technology helps planners to perform highly complex calculations within numerous rules and constraints at the touch of a buttonto identify the best blend th

54、at meets company KPIs for quality,cost efficiency,profitability and sustainability.As a holistic integrated solution,DELMIA Quintiq also creates business value for food manufacturers in integrated business planning and supply chain planning and optimization.Users can perform or evaluate scenarios to

55、 support decision making and enhance collaboration between departments and remote teams across global operations.The highly connected and collaborative environment fostered in companies that leverage DELMIA;drives end-to-end visibility over global operations and supply chain,giving them the power to

56、 optimize and achieve synchronization across their value network for significant ROI.THE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEIts about realizing that the technical implementation is the first step to successful business transformation,and success is ultimately measured by the actu

57、al value it delivers.Additionally,companies will need to make sure that their optimization solution is always tuned to be fit for purpose in order to drive constant improvement for their business.Roel Van Den Broek,Chief Revenue Officer,The Logic Factory“Witness the full discussion between our exper

58、ts on blending optimization and food manufacturing planning by watching our on-demand webinar with Kraft Heinz,Make It Happen for Food Production Planning Excellence.Watch now11THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN

59、INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE AREWHO WE AREDassault Systmes DELMIA,powered by the 3DEXPERIENCE platform,helps industries and service pr

60、oviders connect the virtual and real worlds of value networks to collaborate,model,optimize and perform.DELMIA provides solutions to leverage the virtual world of modeling and simulation with the real world of operations to provide a complete solution to value network stakeholders from suppliers to

61、manufacturers,logistics and transportation providers,as well as service operators and the workforce.Through the full suite of solutions,food and beverage companies can equip themselves with additional capabilities such as Integrated Business Planning,Sales&Operations Planning(S&OP),Master Production

62、 Scheduling(MPS),Detailed Scheduling,Augmented Reality and Production Execution to drive supply chain excellence.The Logic Factory(TLF)helps customers make lasting performance improvements in their supply chain by delivering high-end planning,scheduling and optimization solutions for manufacturing,l

63、ogistics and workforce.TLF believes in building long-term relationships based on mutual trustas a valuable partner that supports your business growth.A certified DELMIA Quintiq Platinum Partner,they excel in executing,hosting and supporting customers in a broad range of industries including Food&Bev

64、erage,Retail,Logistics,Aviation,as well as Agriculture&Commodities.12THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY

65、CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE AREEurope/Middle East/AfricaDassault Systmes10,rue Marcel DassaultCS 4050178946 Vlizy-Villacoublay CedexFranceAmericasDassault Systmes175 Wyman StreetWaltham,Massachusetts02451-1223USAAsia-PacificDassault Systmes

66、K.K.ThinkPark Tower2-1-1 Osaki,Shinagawa-ku,Tokyo 141-6020JapanOur 3DEXPERIENCE platform powers our brand applications,serving 11 industries,and provides a rich portfolio of industry solution experiences.Dassault Systmes,the 3DEXPERIENCE Company,is a catalyst for human progress.We provide business a

67、nd people with collaborative virtual environments to imagine sustainable innovations.By creating virtual experience twins of the real world with our 3DEXPERIENCE platform and applications,our customers push the boundaries of innovation,learning and production.Dassault Systmes 20,000 employees are br

68、inging value to more than 270,000 customers of all sizes,in all industries,in more than 140 countries.For more information,visit .2022 Dassault Systmes.All rights reserved.3DEXPERIENCE,the Compass icon,the 3DS logo,CATIA,BIOVIA,GEOVIA,SOLIDWORKS,3DVIA,ENOVIA,NETVIBES,MEDIDATA,CENTRIC PLM,3DEXCITE,SI

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70、ssault Systmes or its subsidiaries trademarks is subject to their express written approval.13THE EXPONENTIAL INCREASE IN COMPLEXITY FROM BLEND OPTIMIZATIONMEET THE EXPERTSTHE FOOD INDUSTRYS SUPPLY CHAIN CHALLENGESAN INTRODUCTION TO BLEND OPTIMIZATIONAN INTEGRATED SOLUTION TO OPTIMIZE FOOD PRODUCTIONTHE PATH TO FOOD SUPPLY CHAIN SYNCHRONIZATIONTHE RIGHT RECIPE FOR FOOD MANUFACTURING PLANNING EXCELLENCEWHO WE ARE