Discover How to Leverage Dairy Supply Chain Data for Success

One thing that the latest generation of dairy companies have in common is they can all analyze dairy supply chain data and leverage it. Nowadays, milk supply chains depend heavily on data because it provides valuable insight. This can help dairy business owners track and manage dairy supply chain data to make informed decisions.

That being said, many leaders still feel that they can make informed guesses despite being overwhelmed by dairy supply chain data. Analytical success is very challenging and time-consuming because there is a lack of absolute, coherent, compatible, and consistent data.

The question today is, how can you make sure all the data your dairy business collects is useful and aligns with the goals and values of your business? Let’s find out!

The Problem with Dairy Supply Chain Data

Collecting data is a must to ensure the quality of milk, compliance, sustainability, traceability, and optimization. Typically, data in the dairy industry is collected without following a clear set of guidelines. As such, companies often need to implement multiple systems throughout the milk supply chain to collect all the necessary data.

The issue with this type of structure is that the design of each system is different, so data doesn’t flow seamlessly and automatically across the dairy supply chain. Instead, data is manually transferred from one system to another, which results in human error, outdated data, jumbled communication, and other significant inefficiencies. All this leads to inaccurate reports. You know what they say… Garbage in, garbage out.

Most leaders in the industry agree that it’s not easy to correlate data because it’s archived in many different ways. Either due to the differing standards and tools or due to insufficient data. Incomplete and inconsistent data leads to delays, milk forecast mistakes, milk production planning mistakes, and other problems. In this scenario, data is not a benefit, it’s a burden, and the data collection problem begins to solidify.

So, how can dairy companies collect accurate dairy supply chain data for the benefit of the business? By introducing a centralized repository system that’s configurable and seamlessly integrated. This type of repository system can define, store, and manage all the vital data.

It’s a single system, so it’s only one source, and it provides a complete and reliable view of the dairy supply chain data. Companies of all sizes can use a CR system to eliminate redundant data and, more importantly, leverage data to have an advantage over the competition.

Here are the main reasons you need a centralized repository system to leverage dairy supply chain data:

1) It enables standardization and increases transparency

Currently, data visibility is affected by siloed departments. This is a major disadvantage because most company decisions are based on visibility. Standardizing all the systems in your business and merging all the data is the best way to achieve transparency in the dairy supply chain.

A centralized repository system allows companies to keep all the vital dairy supply chain data in one place. Including information about milk quality, company and producer compliance, scheduling, payments, auditability, and sustainability. This is possible because this type of system is configurable and flexible.

This consistent and constant data collection and storage ensures the utmost visibility. Centralized repository systems are also beneficial when it comes to onboarding new producers, haulers, and partners because it’s all available in a single platform, which makes it easier to identify opportunities for cost optimization.

2) It provides forecasting and operations assistance

CR systems facilitate information transfer across the entire milk supply chain. Since the data is standardized, it’s easier to comply with laws, regulations, and social norms. It also allows internal and external parties to collaborate by providing financial data, facilitating automatic payments, and reducing administrative tasks.

For instance, when producers use one centralized repository system, it allows dairy companies to check the production they have forecasted and budgeted. This allows companies to compare that data to their own budget.

Because there’s only one source of data, they can compare real production with the budgeted and forecasted production in real time. If there are any changes in production, the dairy company will be able to adjust and respond to that. Moreover, this increased accuracy leads to greater cost efficiency.

3) It provides a single data source

A centralized repository system provides accurate data analytics so you can make intelligent decisions. It does that by consolidating, cross-referencing, cleaning, validating, and storing data automatically. This way, you have a transparent, all-in-one, end-to-end picture of all your dairy supply chain data.

With this type of system, information regarding milk quality tests, tanker tracking, producer supply, and forecasting are all standardized and anyone involved in the milk supply chain can easily access it. As a result, data can move in real time without any inaccuracies or inefficiencies.

To give you an example, let’s focus on milk quality data. When dairy companies use a CR system, it automatically matches the LIMS system samples with the date, farm, vat, pickup, and manifest. So, if any milk quality issues pop up, you will be able to trace the producer or hauler involved to fix the issue in real-time without losing or wasting any product.

4) It facilitates sustainability and smart management

We live in a world where companies are all interconnected. That means that approaching dairy supply chain data with multiple systems is not only outdated, but it’s also untenable. Thankfully, it’s never too late for a change!

For example, having multiple data systems across the dairy supply chain makes data collection and analysis very difficult and expensive. Why? Because each system has its own set of rules, structures, databases, vendors, and locations.

As such, you have to rely on each database instead of relying on centralized reporting and analysis. This leads to long delays and many other issues. The bottom line is that a centralized repository system is the most effective way to leverage dairy supply chain data and it’s time to ditch obsolete systems.