Food & Drink Processing & Packaging Issue 43 2022 | Page 30

Do You Feel Stuck between a ‘ Rock and a Hard Place ’? Are Rising Costs Diminishing your Bottom Line Profits ?

Instant , prioritised information , giving you end of end visibility of your production processes , can help you to reduce your transformation costs and improve your net profit
Manufacturers of packaged goods everywhere are facing the same dilemma of rising input prices ; raw materials , energy prices , increased labour rates , with little or no opportunity to pass on these rising costs to their supermarket customers , who are themselves fighting a price war with other supermarkets .
Even if you are fortunate enough to be increasing your sales turnover , with this exponential rise in transformation costs ( cost of sales ), your bottom-line profit must be under constant attack .
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With no opportunity to pass on these rising transformation costs , the only place for manufacturers to look is internally , to reduce their own cost of sales by reducing wastage , improving efficiencies and increasing ‘ right first time ’ production procedures . In order to achieve this , it becomes essential to examine production processes , from goods-in to dispatch , so as to identify areas of added and lost value , to streamline these processes and reduce costs at every opportunity .
DIRECT TRANSFORMATION COSTS FROM INPUTS TO OUTPUTS Did you know that by reducing your ‘ end to end transformation costs ’ by a mere 1 % could double or triple your net profit ?
Harford Control have spent the past 40 years listening to their clients and developing an MES system which helps them do exactly that .