FLUCTUATING DEMAND, FOOD AND DRINK SECTOR 29 April 2020 An - PowerPoint PPT Presentation

FLUCTUATING DEMAND, FOOD AND DRINK SECTOR 29 April 2020

An introduction to RSM 6 th largest network of independent firms INTERNATIONAL UK FOOD AND DRINK • • • 43,000 people 3,800 people 100 people • • • 120 countries 350 partners Focusing on food and drink sector • • 810 offices 35 offices

See the latest updates Check if you are and guidance on the eligible for the CBILS different support or CLBILS loan available Visit our Coronavirus hub for practical Discover how best to guidance from our experts: Receive some practical engage with lenders in tips on managing your the current https://www.rsmuk.com/ideas-and- cashflow environment insights/coronavirus-hub Access everything you Understand your options need to know about regarding financial the job retention reporting, accounting and scheme audit

Safeguarding your business What are our clients doing? Previous webinars with FDF • managing and protecting cash • Gaining access to finance • using the cash flow enhancing tax • Research, development and measures available innovation • engaging and negotiating with lenders • flexing their operations to cope with fluctuating demand

About Paul Dowell • British Aerospace Apprentice 1985 • 1992-2012 Executive Operations or Business Leadership roles with Airbus, GE Aviation and GE Oil & Gas, BT Wholesale and Alcan Pharmaceuticals • Sectors – FMCG; – Retail non-food ambient – Aerospace – Pharma – Telecomms • Lean Sigma Black Belt • Consulting with RSM last six years

What is the industry currently facing? “Government financial support welcome, but a lifeboat rather • excess demand than a safe harbour .” • low to zero demand • staff shortages • raw material shortages • financial uncertainty

The uneven impact of SARS CoV-2 on markets *Toiletries includes health, beauty and baby products

The demand spectrum Three scenarios EXCESS DEMAND CAPACITY LOSS LOW DEMAND • “Graceful” shutdowns • • Advanced capacity Advanced capacity • management and management and Planning and preparedness tools for Planning techniques planning techniques restart • • Shift/roster changes Shift/roster changes • Manning and resource • • Short Interval control Short Interval control planning for longer term • • Focused shop floor Focused shop floor low demand Interventions Interventions

Understanding the future S 2

“Big Data” comes of age in manufacturing • plan sequencing optimisation • product mix optimisation • routing optimisation • ‘recipe’ optimisation • quick change over (QCO) • process efficiency optimisation

“Big Data” comes of age in manufacturing • intelligent buffer stocks • supply chain integration • robotic process automation (RPA) • end-to-end process optimisation

What does the future hold? What does the future of the industry look like? • a decrease in internationalisation? • an increase ‘buying british ’? Our recommendations • use data to find and maintain your competitive edge. • explore automation. • keep innovating – those with varied customers and interesting products will prosper.

Contact details If you have any queries about the content of this Stuart McCallum Paul Dowell presentation, do not Partner and Head of Food and Drink Director, Consulting hesitate to get in touch. DL +44 (0) 141 285 3869 DL +44 191 255 7000 E: paul.dowell@rsmuk.com E: stuart.mccallum@rsmuk.com