Food and Beverage Operation: Supply Chain Effectiveness and Production Principles

FOOD AND BEVERAGE
OPERATION

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Food and beverage supply chain effectiveness............................................................................4
Principle of production in food and beverage industry................................................................5
Sustainability problem which is created in the food supply chain...............................................9
Future barriers in the food and catering sector..........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Food and beverage operation refers multiple activities which is completed by staff
member from purchasing groceries and raw material, ready food and beverage, keep stock of raw
material in warehouse, maintained service quality regularly, organized various entertaining
events and monitor the business. Operation is important in food beverage industry because it is
responsible for maintaining standard quality of food and services, food costing etc. in this report
will cover how the food and beverage supply chain can develop effectiveness. This report will
cover principle in food & beverage production. This report will cover process of food
manufacturing in industry.
MAIN BODY
Food and beverage supply chain effectiveness
Supply chain refers the connection of all individual activities like organization, resources
activities and technology which uses in the initiation and marketing of Food and beverage
product. This chain connects various people during delivery like delivery of source of raw
material to supplier, supplier to manufacturer, manufacturer to user thus delivery session
completes in single chain. Food industry plays vital role to provide good quality food along with
good services to customers. Supply chain is important in food and beverage industry. For
example delivery of raw material from farmer to manufacturing industry where it processes of
production, processing, distribution, retailing and consumption. Thus, food relocation from
farmer to consumer and money pays by consumer to supplier. Thus, movement of food and
money in food supply chain industry (Araci, Bulut and Kocak, 2017). There are various
methods of food supply chain management like transactional cost analysis, channel coordination,
network perspective etc.
Transaction cost analysis: This is financial model where analyses raw product prices. This
model assists to buy product at lower cost and sell product at high prices (Borges Lopes, Freitas
and Sousa, 2015). Supply chain manager plays vital role to gain profit in food industry to supply
raw food product at lower cost and delivers product at high cost to customers.
Channel coordination: In food industry, logistic department takes helps of supply chain
management to coordinate different type of customers. Through supply chain coordination
supports to reduce cost of transportation and saves more time. In channel coordination various
supplier are coordinated to each other by the help of supplier chains. For example supplier

supplies the food through transportation to manufacturer where manufacturer supplies food from
transportation to retailer. Thus, whole process is completed by suppliers.
There are various methods to improve supply chain food and beverage industry. For
example if industry started to plan about material requirement and aware to supplier about
requirement. In that state supplier can supplies raw material in specific quantity which leads the
lowest raw material inventory without giving impact on production. Thus, supplier can improve
effectiveness in food industry (Campillo and et.al.,2018). Another term supplier chain can
improve effectiveness in food industry to establish good relationship with customers.
Relationship can improve with customers by providing standard quality food to customers.
Principle of production in food and beverage industry
Importance of food and beverage industry:
food and beverage industry plays vital role where it involves various functions like
processing of raw food materials, packaging and distributing foods to customers. Food and
beverage industry includes various continent like fresh and prepared food in good packaging and
alcoholic & non-alcoholic beverage for customer consumption. Main goal of food and beverage
industry to maintain standard quality of foods and their services so that customer gets values of
their money (Davis and et.al.,2018). This industry also supports to mange food costing and
maintain restaurant and bars. Thus, food & beverage industry plays crucial role in food quality
and food prices. It supports to meet customer needs by offering various taste along with good
quality food in restaurant.
Principle in food production:
There are various principle which is follows during food manufacturing in food industry
which supports to maintain high quality in food manufacturing and make free industry from food
contamination. Thus, these principle helps to enhance quality of foods in food industry.Beside of
this there are various principles which associates from food processing like Heat transfer,
through heat transfer destroy microorganism. Thus provides food safety and shelf life through
destruction of harmful enzymes which leads food contamination. during food production. Mass
transfer is crucial part in food production where it transfers water constituent in food product
which leads preservation in food. Mass transfer involves in to migration where one phase
transfer into another phase during food production (Ferguson and et.al., 2017). Fluid flow
supports to transport liquid fluid from food product during manufacturing. Removal of heat and