Commonwealth Bank’s Manufacturing Insights Report* reveals that almost nine in 10 food and beverage manufacturers and distributors plan to increase technology investment this year. In this third instalment of its Smart Business series, CommBank profiles Bickford’s Australia and how it has integrated technology into its operations.
There is broad agreement that emerging technologies hold productivity benefits, with businesses also striving for increased financial performance and customer experience improvements.
Bickford’s Australia has a history of being at the cutting edge. A decade ago, it reduced costs and streamlined operations by introducing automated equipment.
This included five automated guided vehicles (AGVs) to transfer the finished product from the manufacturing floor to the warehouse, pick bulk pallet orders, and replenish and track stock levels. These robots significantly mitigated human error, reducing Bickford’s six-monthly stocktake variances from an average of $50,000 to within just $50, while also managing labour costs.
More recently, investing in new processing technologies has helped Bickford’s diversify its product range and markets. This included an aseptic PET filling system and glass filling technology, to replace mechanical fillers.
While group operations manager, George Kotses, says this level of sophistication does come at a significant cost, the return is in the business’ stronger market position and consumer appeal.
Improved business efficiencies have also been realised by implementing what Kotses calls a “productivity module”. That is, having software that links automated equipment to its Supervisory Control and Data Acquisition (SCADA) system, delivering real-time line performance, efficiency reporting, and data analysis.
“We have real-time data on all of our lines, providing information from top down to bottom up, so everyone from executives to the shop floor has good visibility,” Kotses says.
“It empowers all users to make effective decisions, underpinned by the automation around us – from manufacturing equipment, to the back end and front end, and the processing side.”
Looking ahead, Kotses anticipates that digitisation across Bickford’s operations will only accelerate, with robotics becoming increasingly important. System logistics opportunities and robotics palletising will be one focusto achieve more efficientand effective inventory management, which will once again link to SCADA.
AI is also expected to take a stronger hold, with more accurate data collection and analysis to help predict demand, presenting an attractive proposition.
A key area of interest for Bickford’s is using AI to enable more accurate sales forecasting and just-in-time production cycles. The end goal will be a more efficient, profitable operation with a more responsive supply chain.
Though digital innovation is here to stay, Kotses says that Bickford’s people continue to be its most valuable asset. However, without the right people to manage digital transformation and operate new digital tools, the benefit will lie dormant.
According to Kotses, systems and process automation has demanded a step change in Bickford’s teams, their thinking, and their skillsets. With fewer administration tasks and greater data analysis requirements, its teams need a problem-solving and growth mindset, and the motivation and aptitude to learn. This is a significant challenge due to skilled labour shortages, but one the business is tackling head-on.
Using an intensive training program, Bickford’s is cultivating a collaborative approach across its business and creating cross-functional teams and a collective-action approach to solving problems.
As Kotses says, “Without having the right people with the right skills, even with automation, our aspirations for digital innovation aren’t going to work. We have a great team around us, and we’re all on a continuous improvement journey; we never stop, the journey keeps going.”
Things you should know:
This article is intended to provide general information of an educational nature only. It must not be relied on as advice and does not have regard to the financial situation of any reader. The information and statistics in this article have been obtained from Bickford’s. The Bank believes that the information in this article is correct, and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no representation or warranty, either expressed or implied, is made or provided as to accuracy, reliability or completeness of any statement made in the article. Any opinions, conclusions or recommendations set forth are subject to change without notice. The Commonwealth Bank does not accept any liability for loss or damage arising out of the use of all or any part of the article.
*CommBank Manufacturing Insights Report, May 2024
©2024 Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945
This article first appeared in the August/September 2024 edition of Food & Drink Business magazine.
