The document summarizes a roundtable discussion on manufacturing and distribution. It outlines key regulations manufacturers must meet from the FDA, EU, and other groups. Driving trends include stricter regulations, sustainability demands, expanding markets, partner collaboration, volatile consumer preferences, and increased demand for traceability. Distributors operate between manufacturers and customers, buying, repackaging, and reselling goods. Managing global complexity and business risks such as demand, compliance, margins, costs, and economic volatility are also discussed. Strategies proposed include focusing on innovation, responsiveness, collaboration, sustainability, new markets, and managing increased input costs.
2. Manufacturing & Distribution Roundtable
Meet tough standards
U.S. Food and Drug Administration
(FDA) reporting
Good Manufacturing Practices
(GMP) requirements
FDA regulation 21 CFR Part 11
European Union Food Traceability
EU Food Traceability Law - Regulation (EC)
No. 178/2002 came into force on 1st
January 2005
Australasian FMCG supermarkets
GS1
3. Manufacturing & Distribution Roundtable
Driving trends
Regulations and sustainability
Regulations for facilities, packaging, food safety, taxes and
duties, environmental protection, ingredient and nutrition
labelling, employee health and safety…
Buying decisions are increasingly more sustainability-driven
Expand markets and product lines
Targeting niche markets, e.g. cultural/religious needs, or growing
economies, e.g. China and India
Service multiple sales channels
Brand extensions
4. Manufacturing & Distribution Roundtable
Driving trends
Partner collaboration
Partnering beyond complying with major customer demand
Joint innovations, e.g. develop custom applications
Supply-chain network collaboration, e.g. supplier replenishment
Consumer demand preferences
Consumers willing to pay premium for safety assurance, health
benefits, eco-friendly practices
Demand changes are volatile, affected by e.g. social trends,
economic downturn
5. Manufacturing & Distribution Roundtable
Driving trends
Traceability
Much more than just compliance
Provide consumer assurance toward safety and sustainable
practices
Enable fast and accurate retrieval of information in the case of
product recalls
6. Manufacturing & Distribution Roundtable
Distributors operate between manufacturers and customers such as
retailers
Buy, repackage, resell, distribute
Manufacturer subsidiary that only distributes (no manufacturing) in a
specific geography
Suppliers Distributors Customers
7. Manufacturing & Distribution Roundtable
Managing Global Complexity
Global sources
Supply chain networks
Changing costs
8. Manufacturing & Distribution Roundtable
Managing Business Risks
Customer demand
Increasing compliance
Managing margins
Commodity cost volatility
Economic volatility
Business velocity
9. Manufacturing & Distribution Roundtable
Strategies for success
From traditional Sustainability for
efficiency and volume differentiation Targeting new
oriented towards and compliance market segments
innovation and and expanding
responsive operating into new regions
models
Accelerating pace of
change in regulations,
buying patterns,
customer needs, niche
markets Managing the
Increase increasing cost of
collaboration with inputs, e.g. fuel,
trading partners commodity goods